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Entertainment

Taylor Swift: Live Nation exec will face lawmakers about concert tickets fiasco

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New York
CNN
 — 

Lawmakers are set to grill top executives from the event ticketing industry on Tuesday after Ticketmaster’s inability to process orders for Taylor Swift’s upcoming tour left millions of fans unable to buy tickets or without their ticket even after purchase.

Joe Berchtold, the president and CFO of Ticketmaster parent company Live Nation Entertainment, is set to testify before a Senate committee on Tuesday, two months after the Swift ticketing fiasco reignited public scrutiny of the industry. Jack Groetzinger, CEO of ticketing platform SeatGeek, is also scheduled to testify at the hearing.

Tickets for Swift’s new five-month Eras Tour – which kicks off March 17 and will have 52 concerts in multiple stadiums across the United States – went on sale on Ticketmaster in mid November. Heavy demand snarled the ticketing site, infuriating fans who couldn’t snag tickets. Customers complained about Ticketmaster not loading, saying the platform didn’t allow them to access tickets, even if they had a pre-sale code for verified fans.

Unable to resolve the problems, Ticketmaster subsequently canceled Swift’s concert ticket sales to the general public, citing “extraordinarily high demands on ticketing systems and insufficient remaining ticket inventory to meet that demand.”

As fury grew among legions of hardcore Swifties, Swift herself weighed in on the fiasco. “It goes without saying that I’m extremely protective of my fans,” Swift wrote on Instagram in November. “It’s really difficult for me to trust an outside entity with these relationships and loyalties, and excruciating for me to just watch mistakes happen with no recourse.”

As a result, the US Senate Judiciary Committee has scheduled the hearing on Tuesday, titled “That’s The Ticket: Promoting Competition and Protecting Consumers in Live Entertainment” to examine the lack of competition in the ticketing industry.

“The issues within America’s ticketing industry were made painfully obvious when Ticketmaster’s website failed hundreds of thousands of fans hoping to purchase tickets for Taylor Swift’s new tour, but these problems are not new,” Sen. Amy Klobuchar, who sits on the committee, said in a statement about the hearing. “We will examine how consolidation in the live entertainment and ticketing industries harms customers and artists alike. Without competition to incentivize better services and fair prices, we all suffer the consequences.”

In his prepared opening remarks, Berchtold blamed “industrial scalpers” for recent online ticketing snafus and called for legislation to rein in those bad actors. Ticketmaster, he said, was “hit with three times the amount of bot traffic than we had ever experienced” amid the “unprecedented demand for Taylor Swift tickets.” The bot activity “required us to slow down and even pause our sales. This is what led to a terrible consumer experience that we deeply regret.”

“As we said after the onsale, and I reiterate today, we apologize to the many disappointed fans as well as to Ms. Swift,” he said in the opening remarks. Berchtold also noted some things the service could have done differently “in hindsight,” including “staggering the sales over a longer period of time and doing a better job setting fan expectations for getting tickets.”

In addition to the executives, the committee said witnesses at the hearing will include Jerry Mickelson, CEO of Jam Productions, one of the largest producers of live entertainment, and singer-songwriter Clyde Lawrence.

Lawrence, who has composed music for motion pictures including the Disney+ holiday comedy movie “Noelle,” wrote an opinion piece for The New York Times in December titled “Taylor Swift’s Live Nation Debacle Is Just the Beginning,” in which he criticized Live Nation for allegedly being a monopoly and detrimental to artists.

“Whether it meets the legal definition of a monopoly or not, Live Nation’s control of the live music ecosystem is staggering,” he wrote.

Criticism of Ticketmaster’s dominance dates back decades, but the Swift ticketing incident has once again turned that issue into a dinner table discussion at many households.

Concert promoter Live Nation and ticketing company Ticketmaster, two of the largest companies in the concert business, announced their merger in 2009. The deal at the time raised concerns, including from the US Department of Justice, that it would create a near-monopoly in the industry.

The Justice Department allowed the Live Nation-Ticketmaster merger to proceed despite a 2010 court filing in the case that raised objections to the merger. In the filing, the Justice Department said that Ticketmaster’s share among major concert venues exceeded 80%.

Ticketmaster disputes that market share estimate and says it holds at most just over 30% of the concert market, according to comments on NPR recently by Berchtold.

While irate fans were left scrambling to wade through the Swift ticket confusion, their collective anger caught lawmakers’ attention.

Members of Congress used the debacle to criticize Ticketmaster’s control of the live music industry, saying that because Ticketmaster dominates so heavily, it has no reason to make things better for the millions of customers who have no other choice.

“Ticketmaster’s power in the primary ticket market insulates it from the competitive pressures that typically push companies to innovate and improve their services,” Klobuchar, who chairs the antitrust subcommittee, wrote in an open letter to Ticketmaster’s CEO in November. “That can result in the types of dramatic service failures we saw this week, where consumers are the ones that pay the price.”

Senator Richard Blumenthal echoed Klobuchar’s concerns. He tweeted at the time that the tour “is a perfect example of how the Live Nation/Ticketmaster merger harms consumers by creating a near-monopoly.”

In December, lawmakers from the House Energy and Commerce Committee sent a letter to Live Nation CEO Michael Rapino, demanding a briefing on what went wrong and what steps the company is taking to fix the problems.

“The recent pre-sales ticketing process for Taylor Swift’s upcoming Eras tour – in which millions of fans endured delays, lockouts, and competition with aggressive scammers, scalpers and bots – raises concerns over the potential unfair and deceptive practices that face consumers and eventgoers,” the committee wrote in its letter.

The committee noted it had previously raised concerns about the industry’s business practices and said it wanted to meet with Rapino to discuss how the company processes tickets for concerts and major tours. It also wants answers about how Ticketmaster plans to improve in the future.

Brian A. Marks, a senior lecturer in the department of economics and business analytics at University of New Haven’s Pompea College of Business, said he would have liked Swift to make an appearance at the hearing.

“This hearing seems to be focused on Swift and what happened with the ticket sales. We also have to remember that Taylor Swift and her team negotiated a contract with Ticketmaster for sale of her concert ticket,” said Marks.

“Will Congress want to look at that contract? To me, what happened with the Swift concert tickets was not necessarily the result of Ticketmaster being the dominant player in the industry,” he said. Artists, and especially larger artists like Swift, “are free to elsewhere,” he said. “This point may get missed in tomorrow’s hearing.”

– CNN’s Frank Pallotta, Chris Isidore and David Goldman contributed to this story



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House Republicans lay groundwork for Mayorkas impeachment as moderates balk

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CNN
 — 

Senior House Republicans are moving swiftly to build a case against Homeland Security Secretary Alejandro Mayorkas as they strongly weigh launching rare impeachment proceedings against a Cabinet secretary, a plan that could generate sharp backlash from GOP moderates.

Key committee chairmen are already preparing to hold hearings on the problems at the southern border, which Republicans say could serve as a prelude to an impeachment inquiry against Mayorkas. Three House committees – Oversight, Homeland Security and Judiciary – will soon hold hearings about the influx of migrants and security concerns at the border.

The House Judiciary Committee, which would have jurisdiction over an impeachment resolution, is prepared to move ahead with formal proceedings if there appears to be a consensus within the GOP conference, according to a GOP source directly familiar with the matter. The first impeachment resolution introduced by House Republicans already has picked up support, including from a member of the GOP leadership team.

A GOP source said the first Judiciary Committee hearing on the border could come later this month or early February.

One top chairman is already sounding supportive of the move, a sign of how the idea of impeaching President Joe Biden’s Cabinet secretary has moved from the fringes to the mainstream of the conference.

“If anybody is a prime candidate for impeachment in this town, it’s Mayorkas,” Rep. James Comer, chairman of the House Oversight Committee, told CNN.

It’s exceedingly rare for a Cabinet secretary to be impeached, something that has only happened once in US history – when William Belknap, the secretary of war, was impeached by the House before being acquitted by the Senate in 1876. Yet it’s a very real possibility now after Kevin McCarthy – as he was pushing for the votes to win the speakership – called on Mayorkas to resign or face potential impeachment proceedings.

With no signs that Mayorkas is stepping aside, House Republicans are signaling they’re prepared to move ahead, even as a bevy of members are uneasy about the approach.

Indeed, McCarthy has to balance his base’s demands for aggressive action with the concerns from more moderate members – many of whom hold seats in swing districts central to his narrow majority. And some in safer seats aren’t yet sold on whether the GOP should pursue that route.

“Clearly, the management of the Southern border has been incompetent,” Rep. Dusty Johnson, a Republican of South Dakota, told CNN. “That is not the threshold in the Constitution for impeachment – it’s high crimes and misdemeanors. … I would want to think about the legal standard the Constitution has set out – and whether or not that’s been met.”

If he loses more than four GOP votes on an impeachment resolution, the effort would fail in the House and could mark a huge embarrassment for the GOP leadership. Already, he has potentially lost one vote – Rep. Tony Gonzales of Texas who signaled he is opposed to the effort right now – and several other members who are far from convinced that charging Mayorkas with committing a high crime and misdemeanor is warranted, even if they believe he’s done a lackluster job in helping secure the southern border.

“Has he been totally dishonest to people? Yes. Has he failed in his job miserably? Yes,” Rep. Mario Diaz-Balart, a Florida Republican, said of Mayorkas. “Are those grounds for impeachment? I don’t know.”

Indeed, Republicans from swing districts are urging their colleagues to not rush into impeachment, which would be dead-on-arrival in the Senate and could turn the American people off if the party is perceived as overreaching.

“The border is a disaster and a total failure by the Biden administration. We should first to try to force change through our power of the purse,” Rep. Don Bacon, who represents a Biden-won district in Nebraska, told CNN. “Maybe after more oversight we’ll see where middle America is at, but I don’t think independent, swing voters are interested in impeachments.”

Asked Tuesday about his pre-election warning that Mayorkas could be impeached by the House over the GOP concerns about the borders, McCarthy railed on the problems at the border.

“Should that person stay in their job? Well, I raised the issue they shouldn’t. The thing that we can do is we can investigate, and then that investigation could lead to an impeachment inquiry,” McCarthy told CNN, adding it could “rise to that occasion” of an impeachment if Mayorkas is found to be “derelict” in his duties.

During the first working week of their new majority, Rep. Pat Fallon, a Texas Republican, introduced articles of impeachment for Mayorkas over problems at the southern border, and Rep. Andy Biggs, a hard-right Arizona Republican, vowed to re-introduce a similar resolution in the coming weeks, which could serve as a template for eventual impeachment proceedings.

Fallon’s resolution says Mayorkas has “undermined the operational control of our southern border and encouraged illegal immigration,” also contending he lied to Congress that the border was secure.

Democrats say Republicans are threatening to impeach Mayorkas for pure political reasons, and say policy disputes hardly rise to the level of “high crimes and misdemeanors.”

Mayorkas has already testified in front of Congress numerous times since he assumed his post, and his agency says he is fully prepared to continue complying with oversight in the GOP-led House. So far, there have been no formal requests for hearings or testimony, with congressional committees still working to get off the ground, though Republicans last year sent numerous letters and preservation requests telegraphing their plans for the majority.

In a statement, a spokeswoman for Mayorkas made clear he has no plans to resign and called on Congress to come together to fix the nation’s immigration system.

“Secretary Mayorkas is proud to advance the noble mission of this Department, support its extraordinary workforce, and serve the American people. The Department will continue our work to enforce our laws and secure our border, while building a safe, orderly, and humane immigration system,” the spokeswoman said in a statement. “Members of Congress can do better than point the finger at someone else; they should come to the table and work on solutions for our broken system and outdated laws, which they have not updated in over 40 years.”

Yet there are signs that the push is gaining steam in the House GOP.

Fallon’s resolution has attracted the support of several Republicans who previously held off on calling for impeachment, including Rep. Dan Crenshaw, a Texas Republican and member of the Homeland Security Committee, and Oklahoma Rep. Stephanie Bice, a new member of the GOP leadership team – signaling the idea is hardly isolated to the fringe wing of the party.

Fallon, too, had not previously backed impeaching Mayorkas until this Congress. Fallon said that he introduced impeachment articles to help get “the ball rolling,” but still believes it’s key to show the American public why they believe Mayorkas deserves to be removed from his post.

“It is important, it is an emergency, you need to break the glass, you really do need to take it up, and then we’re going to have an additional investigation,” Fallon told CNN. “While that’s why I filed the articles, you can always just sit on them and not do anything with them. That starts the ball rolling, we’re going to give Mayorkas the opportunity to defend himself and his department.”

Meanwhile, key committee chairs are vowing to hold hearings on the crisis at the southern border and prepping plans to haul in officials for interviews. GOP Rep. Jim Jordan of Ohio, who leads the powerful House Judiciary Committee where impeachment articles would originate, suggested the issue would be one of the first hearings when his panel gets up and running.

GOP leaders are cognizant of the fact they can only afford to lose four Republicans on any given vote, and want to build a thorough case for impeachment that can bring the entire party along. But pressure is already building on McCarthy, who has emboldened members of his right flank in his bid to claim the speaker’s gavel – and even given them a powerful tool to call for his ouster if he doesn’t listen to their demands.

Rep. Chip Roy, a Texas Republican and one of the key negotiators in the standoff over McCarthy’s speakership and who was the first to call for Mayorkas’ impeachment, told CNN: “I’ve been very public about my belief that he has violated his oath, that he has undermined our ability to defend our country.”

The primary committees that would be involved in building a case against Mayorkas are both chaired by members of the hardline House Freedom Caucus: Jordan and Tennessee Rep. Mark Green, the newly elected leader of the House Homeland Security Committee.

Part of Green’s pitch to become chairman has centered on how he will hold the Biden administration accountable over the southern border. Green told CNN he has a “five-phase plan” to delve into the issue.

“And if it turns out that (impeachment) is necessary, we’ll hand that over to Judiciary,” Green said. “We’ll have a fact-finding role.”

There’s also been talk of holding field hearings at the southern border, while Republicans plan to keep making visits there, as they did in the last Congress.

Jordan told reporters that the border problems will likely be one of his first hearings as chairman of the Judiciary Committee. But a source close to Jordan, who has become a close McCarthy ally, cautioned that they will not move ahead with impeachment unless the party is fully on board

And it’s clear that House Republicans are not yet in agreement on the issue.

Freshman Rep. Mike Lawler, who represents a Biden-won district in New York, told CNN shortly before being sworn in: “I think the top priority is to deal with inflation and the cost of living. … I don’t want to see what we saw during the Trump administration, where Democrats just went after the President and the administration incessantly.”

But there are some Republicans in Biden districts already lining up behind impeachment articles for Mayorkas, suggesting the politics could be moving in the GOP’s direction.

Freshman Rep. Nick Langworthy, another New York Republican, is among the 26 co-sponsors who have signed on to Fallon’s impeachment articles so far.

And another freshman New York Republican from a swing district, Rep. Anthony D’Esposito, has also expressed support for impeaching Mayorkas.

D’Esposito contended that many Customs and Border Protection agents are tired of the leadership from the top.

“They are the ones that will tell you flat out that Secretary Mayorkas is not living (up) to his oath and he is failing to secure our homeland,” he added.

And South Carolina Rep. Nancy Mace, also a Republican who hails from a swing district, said Mayorkas needs to go.

“When you raise your hand and take an oath to protect our country’s border, and you intentionally and willfully neglect to do that job, you should lose it,” said Mace, who pointed to the influx of drugs across the southern border. “Either way, Secretary Mayorkas has to go.”

House Republicans who have long been itching to impeach Mayorkas have been trying to keep the pressure on their leadership, holding a news conference last month and urging McCarthy to more explicitly spell out where he stands on the issue before they voted him speaker.

McCarthy traveled to the southern border shortly after the November election, where he called on Mayorkas to resign and threatened him with a potential impeachment inquiry, though he has not explicitly promised he would go that route.

But even if an impeachment resolution is approved in the House, winning a two-thirds majority in the Senate to convict Mayorkas has virtually no chance of succeeding. Some Senate Republicans, such as Senate GOP Whip John Thune of South Dakota, were noncommittal about backing such a move. And Democrats are roundly dismissing the idea.

“A wonderfully constructive action,” Sen. Chris Coons, a Delaware Democrat, said sarcastically when asked about the impeachment talk.

Coons quickly added: “I think that’d be an enormous waste of time.”

This story has been updated with additional developments Tuesday.

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GOP Rep. Jim Banks announces Indiana US Senate campaign

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CNN
 — 

Indiana GOP Rep. Jim Banks announced on Tuesday that he is running for US Senate, seeking the seat left open by outgoing Republican Sen. Mike Braun, who is running for governor.

“We NEED conservatives in Washington who aren’t afraid to fight Biden’s radical agenda. That’s why I am running to represent our great state of Indiana in the United States Senate,” Banks wrote in a tweet Tuesday morning.

Banks, a Navy veteran and conservative who just won his fourth term in the House, is the first to enter what could be a crowded and competitive GOP primary for the open Senate seat in a reliably red state. The Club for Growth has already started attacking one of his potential rivals, former Gov. Mitch Daniels, launching a 60-second digital ad last week.

Other prominent candidates who have expressed interest include current Gov. Eric Holcomb and 5th Congressional District Rep. Vicky Spartz.

This story has been updated with additional details.



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Progressive Rep. Katie Porter launches bid for Feinstein’s California Senate seat

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CNN
 — 

California Rep. Katie Porter announced a 2024 Senate bid on Tuesday, launching her campaign for Sen. Dianne Feinstein’s seat in what could be a bruising Democratic primary.

The 89-year-old Feinstein, a member of the Senate since 1992, has not yet made public her own plans for 2024, and her office did not respond to a request for comment on Porter’s announcement. However, many Democrats believe she is likely to retire rather than seek a sixth full term.

Porter, a former law professor who has proven to be a prolific fundraiser since first winning her Orange County-area House seat in 2018, survived a tough reelection bid in 2022, when the redistricting process placed her home in Irvine within a 47th District in which she had to newly introduce herself to about two-thirds of voters.

Porter, who studied under future Sen. Elizabeth Warren at Harvard Law School, is best known nationally for her sharp questioning in House oversight committee hearings. She is also a leading progressive, serving as deputy chair of the Congressional Progressive Caucus.

“California needs a warrior in the Senate – to stand up to special interests, fight the dangerous imbalance in our economy, and hold so-called leaders like Mitch McConnell accountable for rigging our democracy,” Porter said Tuesday in a tweet accompanied by a video announcing her candidacy.

If Feinstein were to retire, it would likely set off a crowded scramble for the high-profile Senate seat in the country’s most populous state.

Other potential contenders could include Rep. Adam Schiff, Lt. Gov Eleni Kounalakis, Attorney General Rob Bonta and US Secretary of Health and Human Services Xavier Becerra, a former longtime member of Congress.

Schiff, who views the senator as a mentor, went to see Feinstein in December to tell her that he was thinking about running, in what a source familiar with the meeting said was intended to show her due respect.

Feinstein has filed 2024 reelection paperwork with the FEC, but has faced criticism recently about her fitness for the job. She rejected those suggestions, telling CNN last year that she feels “absolutely” able to serve fully in her position, adding: “I think that’s pretty obvious.”

This story has been updated with additional reporting.



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Business

SEC closes insider trading probe into former Republican senator

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CNN
 — 

The US Securities and Exchange Commission has closed its insider trading investigation into stock trades made by then-Sen. Richard Burr and his brother-in-law at the outset of the pandemic, the former senator announced Friday.

“This week, the SEC informed me that they have concluded their investigation with no action. I am glad to have this matter in the rearview mirror as I begin my retirement from the Senate following nearly three decades of public service,” Burr, a North Carolina Republican, said in a statement.

The announcement comes nearly two years after the Justice Department closed its own review of the matter, which was launched in March 2020, soon after questionably timed trades by Burr and other lawmakers became publicly known.

Burr sold $1.65 million in stock on February 13, 2020, previous court filings by the SEC revealed. The sales included tens of thousands of dollars in stock in the hospitality industry, which was particularly hard hit in coronavirus outbreak.

The SEC declined CNN’s request for comment.

The trades made by Burr and his brother-in-law first attracted scrutiny because of Burr’s position on Senate committees overseeing health policy and US intelligence. The Intelligence Committee, which Burr chaired at the time, had received periodic briefings on the coronavirus as the outbreak began to spread but it did not receive such a briefing the week of the trades.

The SEC previously said Burr possessed “material nonpublic information concerning Covid-19 and its potential impact on the U.S. and global economies.”

In the DOJ’s probe of the stock trade, Burr turned over his official Senate phone to the FBI after a warrant was served, an official confirmed to CNN at the time. Use of the warrant had been signed off at the highest levels of the Justice Department, as is protocol, according to the source.

The Senate-issued cellphone was Burr’s primary device and investigators had asked Apple for information from Burr’s iCloud backup, a person familiar with the investigation previously said.

Burr had consistently denied any wrongdoing, saying he made the trades based solely on public information, not information he received from the committee.

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Biden and McConnell show off their bipartisan bonafides in Kentucky

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CNN
 — 

A rare scene unfolded Wednesday in Covington, Kentucky: President Joe Biden stood alongside Senate Minority Leader Mitch McConnell, as the two men promoted a major bipartisan legislative accomplishment they achieved together.

The president’s visit to McConnell’s home state to herald the implementation of the massive $1.2 trillion infrastructure bill that McConnell and 18 other Senate Republicans voted for, and that Biden signed into law in 2021, marked his first domestic trip of the new year. The trip was aimed at sending an unmistakable message as Biden kicks off the second half of his first term: Even in a newly divided Congress, the Biden White House still sees room for bipartisanship.

Biden thanked McConnell for working across the aisle on the law.

“It wouldn’t have happened without your hand. It just wouldn’t have gotten done and I want to thank you for that,” Biden said to McConnell during his remarks.

He added that while he and McConnell don’t agree on a lot, the Kentucky Republican is someone you can trust.

“He’s a man of his word. When he gives you his word, you can take it to the bank, you can count on it, and he’s willing to find common ground to get things done for the country. So thank you, Mitch. Thank you,” Biden said.

The scene was a stark message of bipartisanship and pragmatism sent by Biden and McConnell as the two old Senate colleagues came together at the same time that House Republicans found themselves falling further into divisive chaos over Rep. Kevin McCarthy’s bid to become speaker. As Biden spoke in Covington, McCarthy suffered a fourth defeat in his push to lead the House of Representatives.

The backdrop for Biden’s visit was the Brent Spence Bridge that connects Cincinnati, Ohio, and Covington, Kentucky, and is known to be one of the busiest freight routes in the country. Officials say the structure carries far more traffic than it is meant to support.

It’s also a bridge that Biden once promised he would overhaul: “We’re going to fix that damn bridge of yours going into Kentucky,” Biden said during a CNN town hall in Cincinnati in the summer of 2021, as the infrastructure bill appeared to be on the cusp of passage.

On Wednesday, the White House announced more than $2 billion from the infrastructure law would go towards upgrading the Brent Spence bridge and other “economically significant bridges” around the country.

Biden’s trip to the Ohio-Kentucky border on Wednesday will also feature Ohio Republican Gov. Mike DeWine and former Republican Sen. Rob Portman, as well as Democratic Kentucky Gov. Andy Beshear and Sen. Sherrod Brown of Ohio.

White House officials say that the show of bipartisanship is aimed at sending a clear signal that as Republicans take control of the House, Biden remains convinced that there will still be opportunities for bipartisan legislative wins.

The White House made it clear on Wednesday that they had no intention of getting involved in the drama playing out in the House. White House press secretary Karine Jean-Pierre told reporters traveling with the president that the Biden administration is “going to let the process play out.”

“It’s not my problem. I think it’s embarrassing the way it’s taking so long,” the president told reporters as he departed the White House Wednesday.

McConnell’s decision to appear with Biden on Wednesday also signals the GOP leader’s willingness to work alongside the president, even as many of his Republican colleagues in the House take a hardline stance against compromising with Democrats.

While White House officials regularly invite all congressional members to attend events Biden holds in their home states, Republicans frequently turn down the opportunity – making McConnell’s decision to join the president this week all the more notable.

Biden himself sought to downplay the importance of the pairing on Monday.

“We’ve been friends a long time. Everybody is talking about how significant it is. It has nothing to do about our relationship,” he said as he returned to the White House from his winter vacation in St. Croix. “It’s a giant bridge, man. It’s a lot of money. It’s important.”

McConnell, during his remarks ahead of the president, noted how the infrastructure law is an example of government working to solve problems for everyday Americans.

“If you look at the political alignment of everyone involved, it’s the government is working together to solve a major problem at a time when the country needs to see examples like this, of coming together and getting an outcome,” McConnell said.

A number of Cabinet officials also plan to travel later this week to promote the infrastructure law. Vice President Kamala Harris will stop in Chicago, and Transportation Secretary Pete Buttigieg will visit New London, Connecticut, on Wednesday where they will each “discuss how the president’s economic plan is rebuilding our infrastructure, creating good-paying jobs – jobs that don’t require a four-year degree – and revitalizing communities left behind,” a White House official said.

Over the coming weeks, Biden is expected to reiterate his bipartisan achievements in stops around the country as the Republican majority in the House begins its work, culminating in his yearly State of the Union address. Biden’s aides have begun work on that speech and have made bipartisanship a central theme.

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Biden signs $1.7 trillion government spending bill into law

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CNN
 — 

President Joe Biden on Thursday signed a $1.7 trillion federal spending bill that includes a number of administration priorities and officially avoids a government shutdown, ending what he called a “year of historic progress.”

“It’ll invest in medical research, safety, veteran health care, disaster recovery, (Violence Against Women Act) funding – and gets crucial assistance to Ukraine,” Biden wrote in a tweet.

He added: “Looking forward to more in 2023.”

Biden signed the bill while vacationing on St. Croix in the US Virgin Islands. The bill was flown to him for signing, the White House said.

“The White House received the bill from Congress late afternoon on Wednesday. The bill was delivered to the President for his signature by White House staff on a regularly scheduled commercial flight,” a White House official told pool reporters.

It’s at least the second time this year that an important bill has been flown to Biden for his signature. While on a trip to Asia in May, a bill authorizing about $40 billion in aid to Ukraine was carried by a staffer who was already scheduled to travel to the region. Biden signed the bill while overseas.

The spending bill represents the final opportunity for Biden and Democrats to put their imprint on government spending before Republicans assume the majority in the House next week. It caps a remarkably productive two years legislatively for Biden, including a Covid-19 relief package, infrastructure bill and a China competitiveness measure.

The legislation includes $772.5 billion for nondefense discretionary programs and $858 billion in defense funding, according to a bill summary from Democratic Sen. Patrick Leahy, chair of the Senate Committee on Appropriations. That represents an increase in spending in both areas for fiscal year 2023.

The sweeping package includes roughly $45 billion in emergency assistance to Ukraine and NATO allies, an overhaul of the electoral vote-counting law, protections for pregnant workers, an enhancement to retirement savings rules and a ban on TikTok on federal devices.

It also will provide a boost in spending for disaster aid, college access, child care, mental health and food assistance, more support for the military and veterans and additional funds for the US Capitol Police, according to Leahy’s summary and one from Sen. Richard Shelby of Alabama, the top Republican on the Senate Appropriations Committee. And the legislation contains several major Medicaid provisions, notably one that could disenroll up to 19 million people from the nation’s health insurance program for low-income Americans.

However, the bill, which runs more than 4,000 pages, left out several measures that some lawmakers had fought to include. An expansion of the child tax credit, as well as multiple other corporate and individual tax breaks, did not make it into the final bill. Neither did legislation to allow cannabis companies to bank their cash reserves – known as the Safe Banking Act – or a bill to help Afghan evacuees in the US gain lawful permanent residency. And the spending package did not include a White House request for roughly $10 billion in additional funding for Covid-19 response.

The spending bill, which will keep the government operating through September – the end of the fiscal year, is the product of lengthy negotiations between top congressional Democrats and Republicans.

Congress originally passed a continuing resolution on September 30 to temporarily fund the government in fiscal year 2023, which began October 1.

This story has been updated with additional details.

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Senate to vote on stopgap bill to avert shutdown at end of the week

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CNN
 — 

The Senate is on track to vote Thursday evening to pass a stopgap bill to avert a government shutdown at the end of this week with funding currently set to expire on Friday at midnight.

The stopgap measure will extend funding for another week – until Friday, December 23 – to give congressional negotiators time to finalize a broader, full-year government funding deal with new topline spending levels.

The House approved the measure on Wednesday. It needs to be passed by the Senate before it can go to President Joe Biden to be signed into law.

In a sign of progress, top negotiators announced Tuesday evening that an agreement had been reached for a framework that puts lawmakers on track to complete a sweeping full-year government funding package.

Senate Appropriations Committee Chairman Patrick Leahy said in a statement that he and ranking Republican member Richard Shelby and House Appropriations Committee Chairwoman Rosa DeLauro had “reached a bipartisan, bicameral framework that should allow us to finish an omnibus appropriations bill that can pass the House and Senate and be signed into law by the President.”

So far, however, negotiators have not provided many specifics about the agreement.

On Wednesday, Shelby said the top line is about $1.7 trillion, but would not elaborate. Shelby said the exact allocations to the different government agencies are still being negotiated.

The announcement that a framework deal had been reached for a broader spending bill represented a major breakthrough in negotiations, but there is still more work to be done now as lawmakers work to finalize the fine print and the specifics of what the sprawling legislation will include.

The expectation on Capitol Hill is that Congress will be able to avoid a shutdown, but congressional leaders have little room for error given the tight timeline they are facing so the pressure is on for lawmakers.

A bipartisan agreement for a full-year government funding deal has proven challenging to secure amid disagreement between the two parties over how much money should be spent on non-defense, domestic priorities.

Republicans are critical of recent domestic spending by Democrats and argue that measures Democrats have passed while they have been in control of both chambers of Congress, like a $1.9 trillion pandemic relief bill and a sweeping health care and climate bill, are wasteful and will worsen inflation.

Democrats counter by saying those measures were necessary to help the country recover from the devastating impact of the pandemic as well as to tackle other critical priorities. Democrats say that money to respond to Covid, health care and climate should not mean there should be less money next year for government operations and non-defense, domestic spending.

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Lawmakers should prepare for one-week funding stopgap as negotiations continue, Schumer says

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CNN
 — 

The House and Senate are expected to pass a short-term extension to avert a shutdown, which would give negotiators more time to try to secure a broader full-year funding deal.

Senate Majority Leader Chuck Schumer said on Monday that senators should be prepared to take “quick action” on a one-week extension to give lawmakers more time to negotiate.

Schumer said in remarks on the Senate floor that he anticipates “quick action” on a stopgap funding bill known as a continuing resolution, or CR for short, “so we can give appropriators more time to finish a full funding bill before the holidays.”

Budget negotiators must reach an agreement before their deadline or punt the decision to next year, when House Republicans take over. That could complicate the government’s ability to avert a shutdown as it would mean newly empowered House Republicans need to agree with 60 senators and Democratic President Joe Biden.

The other major legislative item lawmakers are working to wrap up before the end of the year is the National Defense Authorization Act, the massive annual must-pass defense policy bill. The NDAA is expected to get a vote in the Senate this week and be approved with bipartisan support.

The House has already approved the measure so once the Senate votes to pass it, the bill can go to President Joe Biden to be signed into law.

The approaching deadline for government funding had members of Congress and their staffers from both parties, as well as Biden administration officials, continuing to slog through negotiations over the weekend to try to get to an agreement on a spending package.

“This is the time of the year when there’s no weekends for folks who work on appropriations,” one administration official closely involved in the talks told CNN.

Over the weekend, both Democrats and Republicans were sharing with one another their “bottom lines” on various fronts, and the White House remained publicly optimistic that an agreement could be reached on an omnibus: “There is absolutely still a path and time for a deal.”

Administration officials continue to maintain that they do not see any real likelihood of a government shutdown.

Congressional aides acknowledged to CNN that the weekend talks went better than days prior, which is why Democrats have announced they will not introduce their own Democratic-only omnibus plan on Monday. Republicans on Capitol Hill had been reading a threat for Democrats to introduce their own bills as a messaging exercise that would only further divide negotiators, and by avoiding that messaging exercise, Republicans see a sign that Democrats are serious about trying to get to yes.

For now, a bipartisan deal on government funding remains elusive. Lawmakers have not yet been able to reach a negotiated agreement for a comprehensive, full-year funding package – known on Capitol Hill as an omnibus – amid a dispute between the two parties over how much money should be spent on non-defense, domestic priorities. Sen. Richard Shelby of Alabama, the ranking Republican member on the Senate Appropriations Committee, has told reporters the two sides are roughly $26 billion apart.

Republicans are critical of recent domestic spending by Democrats and argue that measures Democrats have passed while they have been in control both chambers of Congress, like the $1.9 trillion pandemic relief bill and the sweeping health care and climate bill, are wasteful and will worsen inflation. Democrats counter by saying those measures were necessary to help the country recover from the devastating impact of the pandemic as well as to tackle other critical priorities. And Democrats said that money to respond to Covid, health care and climate should not mean there should be less money next year for government operations and non-defense, domestic spending.

Senate Minority Leader Mitch McConnell said Monday that Democrats must drop their demands for additional spending on domestic programs in order to get a broad government funding bill passed before the holidays or risk passing a short-term bill into early next year after Republicans take control of the House and would be poised to demand even lower funding levels.

“Our Democratic colleagues have already spent two years massively – massively – increasing domestic spending using party line reconciliation bills outside the normal appropriations process,” McConnell said on the floor. “Clearly, our colleagues cannot now demand even more, more domestic spending than President Biden even requested in exchange for funding the United States military.”

“If House and Senate Democratic colleagues can accept these realities in the very near future, we may still have a shot at assembling a full-year funding bill that will give our military commanders the certainty they need to invest, plan and stay competitive with rivals like China. If our Democratic colleagues can’t accept those realities, the option will be a short term bipartisan funding bill into early next year,” McConnell said.

Senate Appropriations Committee Chairman Patrick Leahy, a Vermont Democrat, outlined the argument for his party in his own floor remarks on Thursday. Republicans, Leahy said, are “demanding steep cuts to programs the American people rely on.”

Referring to Democratic-passed legislation that Republicans have criticized, Leahy said, “Those bills were meant to get us out of the pandemic, get the nation healthy, and get our economy back on track, and I believe they are accomplishing that goal. They were not meant to fund the basic functions of the American government in fiscal year 2023.”

While lawmakers continue to negotiate, the federal government has begun the process of preparing for a potential shutdown, participating in the mandatory but standard process of releasing shutdown guidance to agencies ahead of Friday’s funding deadline.

Officials have emphasized that there is no real likelihood of a government shutdown, but the standard procedure laying out the steps toward bringing non-essential government functions to a halt is underway.

“One week prior to the expiration of appropriations bills, regardless of whether the enactment of appropriations appears imminent, OMB will communicate with agency senior officials to remind agencies of their responsibilities to review and update orderly shutdown plans, and will share a draft communication template to notify employees of the status of appropriations,” a document from the Office of Management and Budget stated.

That standard guidance was circulated last Friday, marking seven days before a shutdown could occur absent Congressional action.

Every department and agency has its own set of plans and procedures. Those plans include information on how many employees would get furloughed, what employees are essential and would work without pay (for example, air traffic controllers, Secret Service agents, US Centers for Disease Control and Prevention laboratory staff), how long it would take to wind down operations in the hours before a shutdown, and what activities would come to a halt.

This story has been updated with additional developments.

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US

Kyrsten Sinema leaving the Democratic Party and registering as an independent

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CNN
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Arizona Sen. Kyrsten Sinema is leaving the Democratic Party and registering as a political independent, she told CNN’s Jake Tapper in an exclusive TV interview.

“I’ve registered as an Arizona independent. I know some people might be a little bit surprised by this, but actually, I think it makes a lot of sense,” Sinema said in a Thursday interview with Tapper in her Senate office.

“I’ve never fit neatly into any party box. I’ve never really tried. I don’t want to,” she added. “Removing myself from the partisan structure – not only is it true to who I am and how I operate, I also think it’ll provide a place of belonging for many folks across the state and the country, who also are tired of the partisanship.”

Sinema’s move away from the Democratic Party is unlikely to change the power balance in the next Senate. Democrats will have a narrow 51-49 majority that includes two independents who caucus with them: Sens. Bernie Sanders of Vermont and Angus King of Maine.

While Sanders and King formally caucus with Democrats, Sinema declined to explicitly say that she would do the same. She did note, however, that she expects to keep her committee assignments – a signal that she doesn’t plan to upend the Senate composition, since Senate Majority Leader Chuck Schumer controls committee rosters for Democrats.

“When I come to work each day, it’ll be the same,” Sinema said. “I’m going to still come to work and hopefully serve on the same committees I’ve been serving on and continue to work well with my colleagues at both political parties.”

But Sinema’s decision to become a political independent makes official what’s long been an independent streak for the Arizona senator, who began her political career as a member of the Green Party before being elected as a Democrat to the US House in 2012 and US Senate in 2018. Sinema has prided herself on being a thorn in the side of Democratic leaders, and her new nonpartisan affiliation will further free her to embrace an against-the-grain status in the Senate, though it raises new questions about how she – and Senate Democrats – will approach her reelection in 2024 with liberals already mulling a challenge.

Sinema wrote an op-ed in the Arizona Republic released Friday explaining her decision, noting that her approach in the Senate has “upset partisans in both parties.”

“When politicians are more focused on denying the opposition party a victory than they are on improving Americans’ lives, the people who lose are everyday Americans,” Sinema wrote.

“That’s why I have joined the growing numbers of Arizonans who reject party politics by declaring my independence from the broken partisan system in Washington.”

Sinema is up for reelection in 2024 and liberals in Arizona are already floating potential challengers, including Arizona Rep. Ruben Gallego, who said earlier this year that some Democratic senators have urged him to run against Sinema.

“Unfortunately, Senator Sinema is once again putting her own interests ahead of getting things done for Arizonans,” Gallego said in a statement following Sinema’s announcement.

Sinema declined to address questions about her reelection bid in the interview with Tapper, saying that simply isn’t her focus right now.

She also brushed aside criticism she may face for the decision to leave the Democratic Party.

“I’m just not worried about folks who may not like this approach,” Sinema said. “What I am worried about is continuing to do what’s right for my state. And there are folks who certainly don’t like my approach, we hear about it a lot. But the proof is in the pudding.”

White House press secretary Karine Jean-Pierre called Sinema a “key partner” following her decision and said the White House has “every reason to expect that we will continue to work successfully with her.”

Sources familiar with the matter tell CNN that Sinema gave the White House a heads up that she was leaving the Democratic Party. Schumer said in a statement he also was aware of Sinema’s bombshell announcement ahead of Friday morning.

“She asked me to keep her committee assignments and I agreed,” Schumer said. “Kyrsten is independent; that’s how she’s always been. I believe she’s a good and effective Senator and am looking forward to a productive session in the new Democratic majority Senate.”

Schumer also outlined how he did not expect Sinema’s decision to impact Democrats’ plans for next year, saying in his statement, “We will maintain our new majority on committees, exercise our subpoena power, and be able to clear nominees without discharge votes.”

The Biden White House is offering a muted reaction Friday morning and insisting that they expect to continue having a productive working relationship with the senator.

One White House official tells CNN that the move “doesn’t change much” other than Sinema’s own reelection calculations.

“We’ve worked with her effectively on a lot of major legislation from CHIPS to the bipartisan infrastructure law,” the official said. The White House, for now, has “every reason to expect that will continue,” they added.

Sinema has long been the source of a complex convergence of possibility, frustration and confusion inside the White House.

“Rubik’s cube, I guess?” was how one former senior White House official described the Arizona senator who has played a central role in President Joe Biden’s largest legislative wins and also some of his biggest agenda disappointments.

There was no major push to get Sinema to change her mind, a White House official said, noting that it wouldn’t have made a difference.

“Nothing about the last two years indicates a major effort would’ve made helped – the exact opposite actually,” a White House official said.

The most urgent near-term effort was to quietly find out what it meant for their newly expanded Senate majority, officials said.

While there were still clear details to figure out about process, “I think people exhaled when we had a better understanding of what she meant,” one source familiar with the discussion said.

Democratic Sen. Amy Klobuchar of Minnesota told “CNN This Morning” that “Senator Sinema has always had an independent streak,” adding that “I don’t believe this is going to shake things up quite like everyone thinks.”

She added, “Senator Sinema has been an independent in all intents and purposes.”

Sinema and West Virginia Democratic Sen. Joe Manchin have infuriated liberals at various points over the past two years, standing in the way of Biden’s agenda at a time when Democrats controlled the House, Senate and White House.

Sinema and Manchin used their sway in the current 50-50 Senate – where any single Democrat could derail a bill – to influence a host of legislation, especially the massive $3.5 trillion Build Back Better bill that Biden proposed last year. Sinema’s objections to increasing the corporate tax rate during the initial round of negotiations over the legislation last year particularly rankled liberals.

While Sinema was blindsided by the surprise deal that Manchin cut with Schumer in July on major health care and energy legislation, she ultimately backed the smaller spending package that Biden signed into law before the election.

Both Manchin and Sinema also opposed changes to the Senate’s filibuster rules despite pressure from their Senate colleagues and Biden to change them. After a vote against filibuster changes in January, the Arizona Democratic Party’s executive board censured Sinema.

Sinema has been in the middle of several significant bipartisan bills that were passed since Biden took office. She pointed to that record as evidence that her approach has been an effective one.

“I’ve been honored to lead historic efforts, from infrastructure, to gun violence prevention, to protecting religious liberty and helping LGBT families feel secure, to the CHIPs and science bill to the work we’ve done on veterans’ issues,” she told CNN. “The list is really long. And so I think that the results speak for themselves. It’s OK if some people aren’t comfortable with that approach.”

Sinema’s announcement comes just days after Democratic Sen. Raphael Warnock won reelection in Georgia, securing Democrats a 51st Senate seat that frees them from reliance on Vice President Kamala Harris’ tiebreaking vote.

Sinema declined to address questions about whether she would support Biden for president in 2024, and she also said she’s not thinking about whether a strong third party should emerge in the US.

This story has been updated with additional developments.

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