Subject: POLITICO Huddle, presented by Wine & Spirits Wholesalers of America: SANDERS ANGERS DEMS WITH TRUMP DEBATE — Congress skips town with no Zika resolution — PUERTO RICO SENATE DEAL FACES SENATE HURDLE — Rubio for Senate — again? — LGBT PROVISION SINKS APPROPRIATIONS BILL.
From: "POLITICO Huddle" <[email-masked]>
To: <[email-masked]>
Date: Fri, 27 May 2016 07:37:58 -0600

05/27/2016 09:35 AM EDT

By Rachael Bade ([email-masked] or RachaelMBade) 

SANDERS ANGERS DEMOCRATS WITH TRUMP DEBATE PLOY. My Senate teammates Burgess Everett and Seung Min Kim, with the best quotes ever: "For some Democrats, Bernie Sanders' latest gambit - challenging Donald Trump to a debate to cap all debates - is the last straw. 'Bull----,' said Sen. Joe Manchin of West Virginia. 'That confirms what we've been saying. Why would you expect Bernie should be considerate or be nice or be working to bring everyone together? Why? He's not a Democrat.' The party's frustrations are boiling over with Sanders as the primary season winds down: Namely that Sanders seems unwilling or unable to admit that Hillary Clinton is on course for the nomination. The ire toward
 Sanders began earlier this year among the loudest Democratic cheerleaders for Clinton - and now it's seeping into nearly the entire Senate Democratic caucus. Lawmakers reacted with puzzlement, sarcasm and barely veiled anger as Sanders' campaign and Trump himself played up an event that would exclude Democratic front-runner Hillary Clinton." http://go.politicoemail.com/?qs=a91e5ba3c3d98a2adb77853e2cd98571145a53a252f284905a9d137f4dec0564 

UNFINISHED BUSINESS -

1.) CONGRESS LEAVES TOWN WITH NO ZIKA RESOLUTION, LENGTHY NEGOTIATIONS AHEAD. Paul Kane and Mike DeBonis for The Washington Post: "Congress abandoned the Capitol Thursday for an almost two-week break without addressing how to combat Zika, even as public health officials issue dire warnings about the spread of the mosquito-driven virus with summer approaching. Republican leaders insist a deal can be struck soon to provide the money federal health officials say is needed to develop a vaccine. They also downplayed the risk of waiting a little longer, arguing existing money is available for the initial steps needed to help contain the virus while lawmakers resolve the larger funding fight.
 'They can get to work on this problem, and there's money in the pipeline that's already going out the door right now,' House Speaker Paul D. Ryan (R-Wis.) told reporters Thursday."

"But with Democrats hammering Republicans over neglect on a virus that attacks pregnant women, some GOP lawmakers, particularly those in Florida and other warm-weather locales, expressed increasing anxiety about the slowly developing response as the warm weather breeds more mosquitoes. 'The CDC is saying we're less than a month away from a mosquito [epidemic] in the U.S. I mean, I take that seriously,' Sen. Marco Rubio (R-Fla.), the onetime presidential contender, said this week. 'These are not politicians. These are scientists and doctors that are looking at this issue and telling us, you've got a real problem on your hands.'" http://go.politicoemail.com/?qs=a91e5ba3c3d98a2aaef60d62a9e0628a796c1ec95512bc15a748d4e9ad0c6326 

2.) "PUERTO RICO DEBT RELIEF FACES SERIOUS CHALLENGES IN SENATE." Sylvan Lane and Jordain Carney at The Hill: "A bill to help Puerto Rico handle its $70 billion debt crisis is facing an uncertain future in the Senate. No Senate Democrats have endorsed a bill backed by House Speaker Paul Ryan (R-Wis.) and Minority Leader Nancy Pelosi (D-Calif.), while some are actively fighting it. Sen. Bernie Sanders (I-Vt.), a Democratic presidential candidate, said the bill treats Puerto Rico 'like a colony' by setting up an unelected oversight board to restructure the U.S. territory's debt... Sen. Bob Menendez (D-N.J.) called a key provision of the bill 'neo-colonialism,' and has teamed up with Rep. Luis
 Gutierrez (D-Ill.) to push for changes before the House votes on it. On the Republican side, senators say they're hopeful to pass a bill but don't know if they can support the current legislation - which is expected to win House approval given its backing from leaders in that chamber. 'We've stayed in touch with the House as they've negotiated their way through it,' said Senate Majority Leader Mitch McConnell (R-Ky.). 'We've been informed and we're anxious to take up whatever they can pass.'" http://go.politicoemail.com/?qs=a91e5ba3c3d98a2a381dd88f9cbf0f07705e3d4d825b2b437bc7002671318c70 

"MCCONNELL-ALLIED PAC VOWS TO BACK RUBIO - IF HE RUNS FOR RE-ELECTION." Siobhan Hughes for the W.S.J. reports: "An outside group allied with Senate Majority Leader Mitch McConnell says it is prepared to spend heavily to support Marco Rubio should the Florida senator drop his plans to leave office and agree to run for re-election. The Senate Leadership Fund was established to help Republicans keep control of the Senate. It is run by Steven Law, a former chief of staff to Mr. McConnell. 'Florida is a huge financial commitment,' Mr. Law said in a statement. 'We felt confident about betting on Rubio back in 2010 and would do it again in a heartbeat, but right now it's hard to imagine making
 that same investment without him as our candidate.' ... The filing deadline is June 24." http://go.politicoemail.com/?qs=a91e5ba3c3d98a2ac635bb170eaecc0491f6c807b9e29757f0c55a037c6d11c8 

"Rubio: 'Unlikely' I'll run for reelection." Burgess with Marc Caputo: "Mitch McConnell conducted a survey on Sen. Marco Rubio on Thursday: At a GOP caucus lunch, he asked senators whether they'd like to see Rubio run for reelection. Every hand in the room went up. And then the Senate majority leader told senators to get to work persuading Rubio to ditch his retirement from the chamber after one term and run again, according to two sources familiar with the matter."

"National Republicans are growing increasingly worried about their chances in Florida's open Senate race. And Rubio - adamant until now that he will seek a job in the private sector after his failed bid for president - is leaving the door open, if only a millimeter. The Florida senator on Thursday said it was 'unlikely' he would jump into the race, even as fellow Republicans began openly urging him to. A chaotic, five-way Republican primary has stoked worries that Rubio's seat will flip to Democrats. 'I didn't think it was fair for me to run for president and freeze that seat in a competitive state. So, I made my decision,' Rubio told reporters on Thursday afternoon. 'I don't have anything
 new to say from what I said in the past. ... I made that decision and I've lived by that decision. Nothing's changed.'" http://go.politicoemail.com/?qs=a91e5ba3c3d98a2a11e23af75af9c8d6d19aea753176fe21e4673eb68b1759f1 

** A message from Wine & Spirits Wholesalers of America: Tax reform should not favor international companies over American family-owned businesses-but under some proposals that is exactly what would happen. U.S. wine and spirits wholesalers are a major economic engine: 65,000 workers, $5 billion in annual wages, generating more than $55 billion in tax revenue each year. http://go.politicoemail.com/?qs=40dff4dfa902379c5e0204bc028e6700432a735923b573b50303a22c9912e0cb **

HAPPY RECESS! It's Friday, May 27, 2016, the start of recess and Memorial Day weekend. Thanks for reading HUDDLE as you skip town and hit the beach. 

TODAY IN CONGRESS. Staffers playing hooky. 

AROUND THE HILL. A lot of nothing. 

ICYMI: LGBT FIGHT SINKS HOUSE SPENDING BILL. Your Huddle author and John Bresnahan with the latest House appropriations drama: "House conservatives on Thursday blocked passage of a relatively uncontroversial energy and water spending measure after Democrats attached an amendment that would bar federal contractors from discriminating against lesbian, gay, bisexual and transgender people. The appropriations bill failed 305-112, with a majority of Republicans opposed... The breakdown... started earlier in the day when Rep. Rick Allen (R-Ga.) opened the weekly GOP conference meeting with a prayer about the LGBT issue, prior to the vote. He read a passage from the Bible and questioned whether
 members would violate their religious principles if they supported the bill.... A number of Republicans stood up to inform leadership during conference that they could no longer support the bill because of the LGBT amendment, expressing concern over how the amendment came to be attached."

What does this means for the future of the "open-rule" appropriations process? Probably, that it's over... More: "The death of an appropriations bill on the House floor underscores the challenges ahead for Speaker Paul Ryan if he wants to continue his commitment to so-called regular order, a process under which lawmakers have more say in what's voted on. After the bill failed Thursday, the Wisconsin Republican would not rule out changes to the 'open' amendment process... '[W]hat we will have to do when we return is get with our members and figure out how best to move forward to have a full functioning appropriations process,' Ryan said." http://go.politicoemail.com/?qs=d4a2330f7d4dde5e4ac0989b326db6ae76a82369b17904f01a21bf875ca0e260 

WHITE HOUSE SHIFTS STRATEGY ON SPENDING BILLS. Our budget guys Ben Weyl and Matthew Nussbaum for Pro: "The White House is taking a stealth approach to the appropriations process this year. The Obama administration hasn't been terribly vocal as Congress takes up the dozen annual measures to fund the government, but it's been deeply engaged behind the scenes - coordinating closely with congressional Democrats and ready to pounce if it sees a threat to the president's agenda. The decision to step back publicly stands in marked contrast to last year, when the White House was constantly arguing to ease the harsh bite of the sequester's spending cuts. The administration churned out studies,
 letters and blog posts hitting Republicans for slashing education, health care and infrastructure; President Barack Obama made high-profile pitches for a budget deal." http://go.politicoemail.com/?qs=d4a2330f7d4dde5e4a988d2d3db08988bcbf95731f759bbd9f5756c31bc4f204 

HOLDING OUTRAISING ELLMERS 10 TO 1 AHEAD OF PRIMARY. Elena Schneider for Campaign Pro: "North Carolina Rep. George Holding outraised fellow GOP Rep. Renee Ellmers by a 10 to 1 margin ahead of their June 7 member-versus-member primary. Holding raised $294,000 in the last six weeks, according to a statement from his campaign, while Ellmers raised just under $27,000, according to her pre-primary report filed with the Federal Elections Commission. Holding did not release his cash on hand. But Ellmers' report shows that she had just $32,000 in the bank on May 18. 

"The two incumbents are locked in a ferocious, personal battle for a newly redrawn district, which was created after a judge ruled the state's congressional map unconstitutional earlier this year. Greg Brannon, a two-time Senate primary candidate, is also running for the Raleigh-based seat. The FEC allowed the candidates to re-raise money from donors who had already maxed out to them before the primary was rescheduled from March to June."

CLINTON BROKE THE RULES. NOW GET YOUR STICKERS! Your Huddle author wrote last week that the Hill's congressional campaigns were just salivating at the opportunity to raise big money off their opponents (ICYMI: http://go.politicoemail.com/?qs=40dff4dfa902379c987803fe71b1d213d1303f64a041d47fe86219a7e50e2ddf And sure enough, the NRSC yesterday sent around a fundraising blast shining a spotlight on the bombshell State inspector general report that criticized Clinton for breaking State rules on email: "BREAKING: Hillary Clinton Found NON-COMPLIANT," it reads in big bold red and black letters. "A new report from the State Department inspector general has concluded that Hillary Clinton FAILED to comply with federal records policies... Americans
 simply cannot TRUST Hillary Clinton. This is only the latest scandal... TAKE A STAND, Friend. Show that you're #NeverHillary and claim your sticker today! Get your #NEVERHILLARY sticker now, with your donation of just $3 or more." 

MCCONNEL PENS MEDIUM OP-ED: "BACK TO WORK." "When the American people elected a new Republican majority in 2014, they called for the Senate to get back to work. From day one, that's what this majority has set out to accomplish & we've gotten a lot done as a result. Consider what we were able to achieve for the American people last year alone. Enacting permanent tax relief for families and small businesses. Bringing an end to a job-killing energy embargo from the 1970s. Rebuilding our nation's crumbling infrastructure with the most significant transportation solution in years. Replacing No Child Left Behind with hugely important education reforms that empower parents and prevent Washington
 from imposing Common Core. We secured pay raises for our troops, help for our veterans, and hope for the victims of human trafficking." List continues... http://go.politicoemail.com/?qs=d4a2330f7d4dde5e1dc70fd89629b741c5c9c1ec4e125465df53959cae86db55 

And Senate Majority Whip John Cornyn's office sent us this first-look at a video they're posting today, featuring footage from his recent trip to the Middle East, in conjunction with Senate consideration of NDAA: http://go.politicoemail.com/?qs=434323f7db2c2470d0fb0c4560e0d6ddad2c9fb0379544441720596928603fe6 

NEW HIRES. FWD.us, the national bipartisan immigration group backed by Mark Zuckerberg, will announce two new hires today as they staff up to try to move immigration reform next year: Cammie Croft will become managing director in their San Francisco Office, from Amnesty International. Leezia Dahlia will start as communications associate, from speechwriting for Rackspace.

THURSDAY'S TRIVIA WINNER: Anthony Coley was the first to answer that Andrew Young also served as the 55th mayor of Atlanta and would go on to serve in the Carter Administration as the US Ambassador to the United Nations. And as usual, Majority Leader Mitch McConnell also got this right, just a few minutes too late.

TODAY'S TRIVIA: A good one from Robert Edmonson, Nancy Pelosi's chief: What's the name of the room in the Capitol where Speaker Rayburn met to plot strategy and where Vice President Truman got the urgent call to return to the White House when President Roosevelt died? Email Rachael Bade: [email-masked] 

GET HUDDLE emailed to your Blackberry, iPhone or other mobile device each morning. Just enter your email address where it says "Sign Up." http://go.politicoemail.com/?qs=40dff4dfa902379c7d80deabe2ea49c0ced4b0ca7edccbfbf1ee3c9fcf1b7a0e

** A message from Wine & Spirits Wholesalers of America: Last-In, First-Out (LIFO) is a widely-accepted inventory accounting method used by large and small companies around the country. This method is used to determine book income and tax liability.

Under some tax reform proposals, family-owned American wine and spirits wholesalers would be forced to pay massive retroactive taxes on their LIFO reserves. This tax on family businesses would result in a tax increase equivalent to $2,642 for every one of the industry's 65,000 employees. 

LIFO repeal results in higher future tax bills that are particularly burdensome for family companies and threatens wine and spirits wholesalers' ability to invest in new inventory, employees, training, equipment and technology.

WSWA opposes the repeal of LIFO. http://go.politicoemail.com/?qs=40dff4dfa902379c5e0204bc028e6700432a735923b573b50303a22c9912e0cb **

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