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2018年3月1日 星期四

Overnight Finance: Trump to impose new steel, aluminum tariffs | GOP boos decision | Canada threatens payback | Markets drop on fears of trade war | Senate plows ahead with Dodd-Frank rollback

 
 
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Happy Thursday and welcome back to Overnight Finance, the tariff-free newsletter. 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.

 

THE BIG DEAL: Remember that time the president turned U.S. trade policy on its head without giving anyone a heads-up?

President Trump said Thursday that he will impose steep tariffs on steel and aluminum imports from around the world next week, defying Republican lawmakers who have pushed back against the move.

Trump said he will announce tariffs of 25 percent on imported steel and 10 percent on aluminum from all countries that send their metals to the United States, a decision sure to lead to retaliation from key trading partners.

 

Why? The Trump administration has framed its decision around China, though it accounts for only about 2 percent of all imported steel into the United States.

The decision, which could ensnare Mexico and Canada, comes amid the seventh round of North American Free Trade Agreement negotiations in Mexico City this week.

 

The Hill's Vicki Needham explains it all: http://bit.ly/2FID56R.

 

GOP boos decision: GOP lawmakers joined business groups in declaring that slapping 25 percent tariffs on steel and 10 percent tariffs on aluminum will hurt consumers by raising prices and leading trading partners to retaliate against U.S. goods.

Opposition came from GOP leaders in the House and Senate, rising Republican stars and hardline conservatives.

"The speaker is hoping the president will consider the unintended consequences of this idea and look at other approaches before moving forward," Doug Andres, a spokesman for Speaker Paul Ryan (R-Wis.), said in a statement.

The Hill's Vicki Needham and Niv Elis on the GOP pushback: http://bit.ly/2Fg4fnD

 

More reactions 

  • "Tariffs on steel and aluminum are a tax hike the American people don't need and can't afford." -- Senate Finance Committee Chairman Orrin Hatch (R-Utah).
  • "Terribly counterproductive." -- Senate Agriculture Committee Chairman Pat Roberts (R-Kan.).
  • "Protectionism is weak, not strong. You'd expect a policy this bad from a leftist administration, not a supposedly Republican one." -- Sen. Ben Sasse (R-Neb.).
  • "These proposed tariffs on steel and aluminum imports couldn't come at a worse time." -- Cody Lusk, president of the American International Automobile Dealers Association.
  • "These tariffs are very likely to accelerate a tit-for-tat approach on trade, putting U.S. agricultural exports in the cross-hairs." -- Brian Kuehl, executive director of Farmers for Free Trade.
  • "We're on the brink of a potentially historic rebalance of America's trade priorities." -- Alliance for American Manufacturing President Scott Paul.
  • "American workers and American consumers will suffer as a result of
    this misguided tariff." --MillerCoors.

 

But Trump also found support from unions and some Democrats.

  • "I want the president to move... They've been talking about this and walked up to the edge for 10-and-a-half months now, causing more steel job losses, causing more U.S. companies hardship, lost revenues, lower sales, and look where we are." -- Sen. Sherrod Brown (D-Ohio).
  • "For years, we have called attention to the predatory practices of some steel exporting countries. Such practices hurt working people and cheat companies that produce in the U.S. We applaud the administration's efforts today to fix this problem," AFL-CIO President Richard Trumka. More on the union's response here.
 
 
 
 

Market melts down: U.S. stocks slid Thursday after Trump's announcement. The Dow Jones industrial average lost 420 points on the day, a 1.7 percent decline, while the Nasdaq and Standard & Poor's 500 indexes closed down roughly 1.3 percent each.

The Dow fell as much as 580 points following the announcement. The Nasdaq and the S&P also fell roughly 1.8 percent each.

The announcement tanked shares of car companies and airplane manufacturers that would spend much more on raw materials under the tariffs. I've got more on that here: http://bit.ly/2FGU5u4.

 

Canada threatens payback: Canadian Foreign Minister Chrystia Freeland said President Trump's announcement that he plans to impose a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports is "absolutely unacceptable."
"It is entirely inappropriate to view any trade with Canada as a national security threat to the United States," she said in a statement.

"We will always stand up for Canadian workers and Canadian businesses. Should restrictions be imposed on Canadian steel and aluminum products, Canada will take responsive measures to defend its trade interests and workers." http://bit.ly/2FMQ4Vj.

 

What comes next: Trump said he would sign the tariffs into law next week, and it would be foolish to assume its certain he will follow through quickly. He's facing fierce resistance on the tariffs from dozens of GOP lawmakers and a group of aides, including Gary Cohn.

Republicans are deeply opposed to the tariff plan, and could ramp up their opposition if Trump refuses to retreat. Trump is already risking a clash with GOP lawmakers after threats to pull out of the North American Free Trade Agreement (NAFTA).

Two major protectionist moves on trade policy could pose serious problems for the president with his own party.

 

LEADING THE DAY

When rolling back Dodd-Frank is the less controversial option: Senate Majority Leader Mitch McConnell (R-Ky.) is moving to banking reform legislation -- not gun control or other responses to the high school shooting in Florida -- next week in the Senate.

McConnell has filed a motion to have a procedural vote Tuesday on legislation sponsored by Senate Banking Committee Chairman Mike Crapo (R-Idaho). After that, McConnell hopes to move to legislation addressing sex trafficking, according to GOP sources.

Legislation addressing the Florida high school shooting, the subject of contentious conversations between President Trump and GOP lawmakers at a White House meeting televised live on cable news Wednesday, will wait. The Hill's Alexander Bolton digs into that dynamic, with a quick assist from me on the Crapo bill.

 

Senators push Fed chair on banking bill: Members of the Senate Banking Committee sought confirmation from Fed Chairman Jerome Powell that the bipartisan bill to roll back parts of the Dodd-Frank Act would benefit the economy.

Powell, a Republican who has previously supported several provisions of the bill, signaled support for much of the measure without explicitly endorsing it. He backed efforts to lower the threshold at which a bank becomes systemically important, along with other measures meant to relieve regulatory burdens on community banks.

Senators supporting the bill were elated, while its liberal critics challenged Powell on his analysis of the bill. Here's how it all went down: http://bit.ly/2FGNZdf.

 

So what? Powell's comments give the bill's supporters more ammo in the spin war with progressive groups over the size and scope of the legislation. With 12 Democrats backing it, the bill is almost certain to pass the Senate. But getting the bill through the House with enough changes to appease conservatives without losing Dems will be tough. Senators were able to get Powell on-the-record today supporting specific provisions they're seeking, a useful tool in a messaging war.

 

Warren vs. Wells Fargo... Sen. Elizabeth Warren (D-Mass.) insisted Thursday that the Fed board, not just staff, must approve Wells Fargo's progress as mandated by a January consent order.

Wells Fargo is banned from doing anything that would increase its total consolidated assets past their December 2017 levels while it takes measures to bolster its compliance with federal banking laws. The bank will still be able to issue loans and take deposits. 

Wells Fargo has 60 days to send the Fed thorough action plans on how it would revamp the board's oversight of the bank and its risk management system. The bank is also required to commission two third-party reviews of its reform efforts. All are subject to the Fed's approval. 

Warren insisted during today's Banking Committee hearing the full Fed board vote on approving the plans, not just Fed supervision staff. She also asked Powell to make public whatever he could of the third-party review.

"I hope you wouldn't consider lifting it because Wells made marginal progress," Warren said. "That message will be lost if the Fed does not enforce the order strictly and show the public and the banking industry that they mean business."

Powell agreed to review her concerns with the Fed board.

 

And Wells Fargo lands in more trouble: From the Charlotte Observer: "Federal authorities are looking into Wells Fargo's wealth and investment management business, the bank disclosed Thursday, the latest sales practices problem to emerge at the beleaguered company.

"The bank's board is reviewing activities within the business unit in response to inquiries from federal government agencies, Wells said in its annual 10-K filing."

 

Mick's signals: Mick Mulvaney, the acting director of the Consumer Financial Protection Bureau (CFPB) said Thursday he thinks he could remain in charge of the agency for as long as another six months while waiting for President Trump to nominate and the Senate to confirm a new director.

"The statute allows me to stay until the end of June, but if the president nominates someone before then, the statute allows me to stay until they're confirmed."

Mulvaney doesn't seem to mind sticking around the CFPB, though the same can't be said for Democrats about his tenure. Despite Mulvaney's qualms with the CFPB's old leadership, he had high praise for career bureau staffers and said that "most of the folks I work with are extraordinarily talented."

Mulvaney, a former attorney and congressman, said that the bureau has produced "some of the best legal work" he's seen.

He said the agency was mainly staffed by "technocrats ... there to execute the law," but argued "we'd be kidding ourselves" without noting the proportionally higher level of "activists" employed by the bureau.

"I was expecting it to be much worse than it is," Mulvaney said. "I was very worried that it would be me versus 1,700 people." http://bit.ly/2FJcsie.

 

GOOD TO KNOW

  • IMF Director Christine Lagarde said the recent U.S. tax cuts and budget deal could "have an overheating impact on the economy."
  • Hatch says he's looking to get the IRS more money to implement the new tax law.
  • The Center for Responsible Lending and the National Urban League released a report on the Corker-Warner housing finance reform plan, insisting it "would impose great harm on affordable housing efforts and the overall housing market."
  • A group of female Democratic senators is demanding details on the prevalence of sexual harassment in the financial sector.
  • Barney Frank shares his perspective on why bipartisan Dodd-Frank reform never happened before.
  • The U.S. government is hammering home the message to Wall Street banks that it's okay to dial up the risk when lending to companies, according to Bloomberg.

 

ODDS AND ENDS

 
 

Join The Hill on Wednesday, March 21, for Leadership in Action: The Hill's Newsmaker Series featuring Sen. Lamar Alexander (R-Tenn.) and Reps. Nanette Barragán (D-Calif.), and Joe Crowley (D-N.Y.). RSVP Here

 
 

Write us with tips, suggestions and news: slane@thehill.comvneedham@thehill.comnjagoda@thehill.com, and nelis@thehill.com. Follow us on Twitter: @SylvanLane,  @VickofTheHill@NJagoda, and @NivElis.

 
 
 
 
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Overnight Defense: Putin boasts of new nuclear weapons | US approves sale of anti-tank missiles to Ukraine | Dem warns of China's influence in Africa

 
 
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THE TOPLINE: Russian President Vladimir Putin said on Thursday that his country has developed a new nuclear weapon that makes defense systems "useless," according to multiple reports.

Putin told lawmakers and political elites in his annual address that the intercontinental ballistic missile is capable of reaching nearly any target in the world, NBC News reported.

"I want to tell all those who have fueled the arms race over the last 15 years, sought to win unilateral advantages over Russia, introduced unlawful sanctions aimed to contain our country's development ... you have failed to contain Russia," he said.

He said the new missile is "powerful and modern and defense systems will not be able to withstand it."

"Missile defenses will be useless against it," he said.

Putin also claimed the West has ignored Russia.

"Nobody listened to us. Well listen to us now," he said.

Read more about that here.

 

PENTAGON PUSHES BACK: In response, the Pentagon says it is "not surprised" by Putin's remarks.

"We're not surprised by the statement, and the American people should rest assured that we are fully prepared," Pentagon spokeswoman Dana White told reporters after the announcement by Putin. 

"We need to ensure we have a credible nuclear deterrent, and we are confident that we are prepared to defend this nation no matter what." 

Read the rest here.

 
 
 
 

US TO STEP UP WORK ON HYPERSONIC MISSILES: The Pentagon's high-tech office will more aggressively pursue so-called hypersonic missiles as Russia and China make advances in that area, the office's director said Thursday.

"China and Russia are active in the area of hypersonics, have been developing capabilities," Defense Advanced Research Projects Agency (DARPA) Director Steven Walker told the Defense Writers Group.

"DARPA has been developing technology and capabilities in the hypersonics area for a while. ... We do need an infusion of dollars in our infrastructure to do hypersonics."

Hypersonics are generally defined as missiles than can fly more than five times the speed of sound.

Walker's comments come after Putin earlier in the morning bragged about his country having hypersonic weapons.

Walker would not comment on the veracity of Putin's speech, other than to acknowledge open reporting about Russia's capabilities, as well as China's.

The Hill's Rebecca Kheel has more here.

 

US MISSILE SALE TO UKRAINE MAY INFLAME TENSIONS WITH RUSSIA: The State Department has officially approved a possible $47 million sale of Javelin antitank missiles and related equipment to Ukraine, the Pentagon announced Thursday.

The move marks a significant escalation of lethal aid to Ukraine in its ongoing struggles against Russia.

"This proposed sale will contribute to the foreign policy and national security of the United States by improving the security of Ukraine," the Defense Security Cooperation Agency said in its official notice.

"The Javelin system will help Ukraine build its long-term defense capacity to defend its sovereignty and territorial integrity in order to meet its national defense requirements. Ukraine will have no difficulty absorbing this system into its armed forces.

Congress was officially notified of the sale Thursday, according to the notice.

That sets off a 30-day clock for Congress to block the sale if it so chooses. But lawmakers from both parties have been broadly supportive of selling lethal defensive weapons to Ukraine.

Ukraine has long requested the weapons to bolster its fight against Russian-backed separatists in the eastern part of the country.

The Obama administration, however, limited its support to nonlethal aid as it was worried injecting such weapons into the conflict would make an already volatile situation worse.

But late last year, the Trump administration said it approved the plan to provide lethal weapons to Ukraine.

Read the rest here.

 

DEM WARNS OF CHINA'S INFLUENCE IN AFRICA: The ranking member of the Senate Armed Services Committee on Thursday warned of China's growing influence in Africa after a trip to the region.

"Wherever we're going in Africa, they seem to be there, or following close behind," Sen. Jack Reed (D-R.I.) said of China.

Reed last week took a trip with stops in Djibouti, Somalia and Jordan and spoke with reporters about it Thursday.

China's first and only foreign military base is in Djibouti, where the United States also has its only permanent base in Africa. The Chinese base was officially opened in August and was built over the last two years.

Additionally, China has lent a "huge amount of money" to Djibouti and is "moving into" northern Kenya with a "major investment," Reed said.

The Hill's Rebecca Kheel has the rest here

 

ON TAP FOR TOMORROW:

The Mitchell Space Breakfast Series will hold a conversation with Maj. Gen. Joseph Guastella, the director of integrated air, space, cyberspace, and intelligence, surveillance and reconnaissance operations at the Air Force Space Command at 8 a.m. at the Capitol Hill Club in Washington

 

ICYMI:

-- The Hill: US continues diplomatic push with North Korea, but military preps for potential strike: report 

-- The Hill: South Korea tells Trump it plans to send special envoy to North Korea: report 

-- The Hill: Dems press Trump on response to Russian cyber threat 

-- The Hill: Kelly: I didn't want to leave DHS, but 'God punished me'

-- NBC News: New Russian nuke weapons aren't new and may not be ready, say experts

 
 

Join The Hill on Wednesday, March 21, for Leadership in Action: The Hill's Newsmaker Series featuring Sen. Lamar Alexander (R-Tenn.) and Reps. Nanette Barragán (D-Calif.), and Joe Crowley (D-N.Y.). RSVP Here

 
 

Please send tips and comments to Rebecca Kheel, rkheel@thehill.com, and Ellen Mitchell, emitchell@thehill.com.

Follow us on Twitter: @thehill@Rebecca_H_K@EllenMitchell23

 
 
 
 
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Overnight Health Care: GOP eyes budget maneuver to pay for ObamaCare funds | Trump calls for 'very strong' penalties on drug dealers | Mental health groups push for changes after shooting

 
 
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GOP eyes budget maneuver to pay for ObamaCare funds

Republicans are weighing whether to use a complicated budget maneuver to help pay for additional ObamaCare funding, sources say.

The idea being considered by House Republican leaders is controversial because it would help fund key ObamaCare payments to insurers, something that many conservatives decry as a "bailout" of the law.

Under the possible plan, the House Budget Committee would direct the Congressional Budget Office (CBO) to take ObamaCare payments to insurers known as cost-sharing reductions (CSRs) out of its "baseline" for projecting federal spending. Essentially, the agency would stop assuming that the ObamaCare payments would be made.

That shift by the CBO would unlock the second step of the Republican plan. If they subsequently proposed making the CSR payments, the CBO would then score the proposal as saving the government money. Those savings could then be used to pay for additional ObamaCare stability funding, known as reinsurance, to bring down premiums.

Read more here

 

Trump calls for 'very strong' penalties for drug dealers

President Trump on Thursday called for being "very strong on penalties" for drug dealers while speaking at a White House opioid summit.

Trump called for tough action against those who are dealing opioids. While he did not mention the death penalty specifically, Axios reported recently that Trump has privately been calling for the death penalty for drug traffickers.

"Some countries have a very, very tough penalty, the ultimate penalty," Trump said Thursday.

"The answer is you have to have strength, and you have to have toughness," he added.

Read more here.

 
 
 
 

Melania Trump calls for action on opioids

First lady Melania Trump opened the White House summit on opioids with a call for action.

The first lady added her voice to the discussion as the administration works to highlight steps it has taken to address the crisis.

"I am so proud of the work that this administration has already done to combat this epidemic," Trump said. "We all know there is still much work to be done, which is why we are all here today."

The first lady read from a letter written by a woman who lost her son to an opioid overdose. In her remarks, Trump called for a focus on babies and young mothers with addiction.

Read more here.

 

GOP chairman: Panel reviewing additional legislation to fight opioid crisis

House Energy and Commerce Chairman Greg Walden (R-Ore.) detailed additional pieces of opioid legislation the panel will review as it aims to get the bills passed by Memorial Day weekend.

At a U.S. Chamber of Commerce event Thursday on combating the opioid epidemic, Walden specifically mentioned three bills the committee will review in its next legislative hearings slated for this month.

These include a measure to add information about a patient's opioid addiction into certain medical records; establish a federal coordinator to conduct an electronic database on opioid data, funding resources, analysis of the effectiveness of federal programs and more; and require the Government Accountability Office to evaluate and study ways to safely dispose of opioids.

Read more here.

 

Sessions asks DEA to review opioid production quotas

Attorney General Jeff Sessions is asking the Drug Enforcement Administration (DEA) to evaluate whether changes are needed to the amount of opioids drug makers are allowed to produce.

If needed, potential alterations could be made through an interim final rule, which allows an agency to issue a new regulation effective immediately without first going through the notice and comment period.

In Sessions's memo to the DEA, he noted that studies have indicated the U.S. is an outlier compared to other countries in how many opioid prescriptions are given out each year.

Every year, the DEA sets the production and manufacturing quotas for Schedule I and II controlled substances.

"Given the urgency of this crisis, with an estimated 175 Americans dying per day, we need the DEA to act quickly to determine if changes are needed in the quotas," Sessions wrote in the memo.

Read more here.

 

Mental health groups push for policy changes after shooting

Mental health advocates are seizing on the new spotlight on their issue after the Florida shooting, as President Trump and congressional Republicans focus on mental health as a solution to gun violence.

Some mental health groups want to use the renewed attention on mental illness to push for more resources to address what they see as major gaps in the country's mental health system.

While Democrats have accused Republicans of focusing on mental health in an attempt to deflect attention from gun control, advocates welcome the focus.

"It is a deflection when people start talking about guns and violence and mental health, but if people want to deflect and have the conversation, I'm more than willing to have it," said Paul Gionfriddo, president of Mental Health America.

Read more here.

 

Senate Dem calls for funding CDC gun research

A Democratic senator is calling on appropriators to include funding in the upcoming budget bill for the Centers for Disease Control and Prevention (CDC) to study gun violence.

Sen. Ed Markey (D-Mass.) said he wants to provide $10 million a year for six years to conduct or support CDC research on firearms safety and gun violence prevention.

"We seem to have found the political will on research into gun violence prevention, so the only thing stopping it is funding," Markey said in a statement. "For too long, our researchers, scientists, and policymakers have suffered from the lack of information about what is causing gun violence and what can be done to prevent it. No one should be afraid of science."

Long-standing restrictions have effectively prevented the CDC from conducting any kind of gun violence protection research.

Read more here.

 

Planned Parenthood announces $20M midterm election campaign

Planned Parenthood's political arm is taking aim at eight states in its largest-ever midterm election campaign, the organization announced Thursday.  

The "March. Vote. Win." campaign will focus on competitive Senate and governors races with an initial cost of $20 million.

Planned Parenthood Action Fund (PPAF) will initially target races in Arizona, Florida, Michigan, Minnesota, Nevada, Ohio, Pennsylvania and Wisconsin, though that roster could change as the election cycle evolves.  

The organization believes it can have the biggest impact in these races, which could shift the balance in the Senate and in the states.

The campaign will involve digital and TV ads, direct mail and door canvassing.

Read more here.

 

Trump official says unaccompanied minors don't have constitutional right to abortions

The Trump administration official who has denied abortions to unaccompanied minors in U.S. custody said he does not believe they have a constitutional right to the procedure.

Scott Lloyd, the director of the Department of Health and Human Services's Office of Refugee Resettlement (ORR), which cares for minors who enter the country without their parents, denied seven abortion requests between March and Dec. 19, 2017, according to documents released by the American Civil Liberties Union (ACLU), which is suing the administration over the policy.

In a deposition Lloyd gave in December, he replied "yes" when asked if he believed unaccompanied minors have "no constitutional right to abortion."

The ACLU has battled the Trump administration over the policy, representing four pregnant unaccompanied minors who had been blocked from getting abortions.

The new policy represents a significant departure from how previous administrations handled pregnant unaccompanied minors in U.S. custody seeking abortions.

Read more here.

 

More... Top Dem calls for Lloyd to resign

Sen. Patty Murray (D-Wash.) on Thursday called for the resignation of Scott Lloyd. "Under Scott Lloyd's leadership, an office tasked with caring for young, vulnerable women in our country's custody has been turned into an 'ad hoc' testing ground for the Trump-Pence plan to interfere with women's most personal health care decisions and take away women's constitutional right to safe, legal abortion," Murray, ranking Democrat of the Senate Health Committee, said in a statement Thursday.

Read more here.

 

Poll: ObamaCare favorability reaches all-time high

The favorable rating for ObamaCare has reached its highest level since the law was enacted in 2010, according to a Kaiser Family Foundation (KFF) poll.

The poll finds that 54 percent of the public has a favorable view of the law, compared to 42 percent who have an unfavorable view. That is the highest favorable rating in a KFF poll since it began asking the question in 2010.

The rise is driven by independents, the KFF found, with 55 percent now having a favorable view of the law, a significant jump from 48 percent last month. Nearly eight in ten Republicans still have an unfavorable view of the law.

Read more here.

 

Hatch: ObamaCare supporters are 'the stupidest, dumbass people I've ever met'

Sen. Orrin Hatch (R-Utah) on Thursday called ObamaCare supporters "the stupidest, dumbass people" he's ever met.

Orrin made the comments during a speech at the American Enterprise Institute about the GOP tax overhaul, which repealed the ObamaCare individual mandate.

"[We] finally did away with the individual mandate tax that was established under that wonderful bill called ObamaCare," Hatch said during his remarks. "Now, if you didn't catch on, I was being very sarcastic. That was the stupidest, dumbass bill that I've ever seen."

"Some of you may have loved it," he continued. "If you do, you are one of the stupidest, dumbass people I've ever met. And there are a lot of them up there on Capitol Hill from time to time."

A spokesman for Hatch told the Deseret News that the comments were "obviously" a joke.

Read more here.

 

What we're reading

Uber and Lyft think they can solve one of medicine's biggest problems (The Washington Post)

Tens of thousands of Medicaid recipients skip paying new premiums (Kaiser Health News)

People with pre-existing conditions could face tough times ahead (CNN)

FDA approves Sorrento's non-opioid painkiller patch, shares jump (Reuters)

 

State by state

Rules for backup power for nursing homes go to Florida House (Associated Press)

Family convicted in health care fraud conspiracy in 3 states (Associated Press)

Medical pot helps with chronic pain, Minnesota patients report (Star Tribune)

 
 

Join The Hill on Wednesday, March 21, for Leadership in Action: The Hill's Newsmaker Series featuring Sen. Lamar Alexander (R-Tenn.) and Reps. Nanette Barragán (D-Calif.), and Joe Crowley (D-N.Y.). RSVP Here

 
 

Send tips and comments to Jessie Hellmann, jhellmann@thehill.com; Peter Sullivan, psullivan@thehill.com; Rachel Roubein, rroubein@thehill.com; and Nathaniel Weixel, nweixel@thehill.com.

Follow us on Twitter: @thehill@jessiehellmann@PeterSullivan4@rachel_roubein, and @NateWeixel.

 
 
 
 
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