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2018年4月4日 星期三

Overnight Energy: Pruitt goes on offense against 'toxic' Washington | New Pruitt controversy over staffers' pay raises | Sanders won't say if Trump has confidence in Pruitt

 
 
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PRUITT'S (CONSERVATIVE) MEDIA BLITZ: Environmental Protection Agency (EPA) head Scott Pruitt has gone on a conservative media tour over the last two days to respond to the recent scandals plaguing him and to take swipes at what he sees as liberal forces working against him.

Pruitt did hits with the Washington Examiner's Paul Bedard, the Daily Signal, the Washington Times and Fox News. (That last one stood out, so stay tuned.)

In his interview with Bedard, Pruitt said he was "dumbfounded" by the controversy over his $50 per night apartment rental, and attributed the scandal to "toxic" Washington, D.C.

"There are people that have long in this town done business a different way and this agency has been the poster child of it. And so do I think that because we are leading on this agenda that there are some who want to keep that from happening? Absolutely. And do I think that they will resort to anything to achieve that? Yes," he said.

In the Daily Signal, Pruitt argued that the media reporting about the situations is untrue and incomplete.

"I think the information has been, as things go, I think very intermittent and very sporadic and not terribly complete with respect to what the truth is," he said.

"We had a memo and a statement from career ethics officials here that have actually reviewed the lease, that actually reviewed comps--comparables of similar units," Pruitt continued, accusing journalists of ignoring that.

Pruitt used much of a live podcast taping with the Washington Times' Matt Mackowiak and Charlie Hurt to reiterate his usual talking points in interviews, related to the Clean Water Rule, the Paris agreement, deregulation and the like.

But when the conversation turned to his recent scandals, he aimed straight at liberalism.

"I think it's noise. It's been noisy and competitive since day one. Because this agency has been a bastion of liberalism since day one," he said.

"As we are making progress there and also reducing the regulatory burden, it is infuriating to those that have dominated and controlled the agency for years."

But Fox News: The tone of his interview with Fox News was different, at least in the clip that the cable channel released Wednesday.

Pruitt told Fox News's Ed Henry that he didn't know about the raises given to two aides until Tuesday and still doesn't know who is responsible for making them.

Fox's Ed Henry repeatedly pushed Pruitt on the report that the White House rejected his request to give the staffers raises, so the EPA found a way to do it anyway.

"You don't know? You run the agency. You don't know who did this," Henry asked.
"I found out about this yesterday and I corrected the action. And we are in the process of finding out how it took place and correcting that going forward," Pruitt said.

Henry said the staffers were friends of Pruitt from Oklahoma.

"Well, they serve a very important person here," he said.

Read more and watch the clip.

 

Why it matters: Trump loves watching Fox News, so there's a good chance he might see parts of Henry's interview with Pruitt.

But Trump also loves forcefully taking on Democrats and environmentalists, and that seems to be Pruitt's strategy here.

 

Sanders won't say Trump has confidence in Pruitt: White House press secretary Sarah Huckabee Sanders on Wednesday declined to answer directly if Trump has confidence in Pruitt.

She confirmed that the White House is investigating whether the lease arrangement was proper.

"The president thinks that he's done a good job, particularly on the deregulation front," Sanders told reporters at the White House.

Asked if Trump is OK with the arrangement, Sanders said he is not.

"We're reviewing the situation. When we have had the chance to have a deeper dive on it and we'll let you know the outcomes of that, but we're currently reviewing that here at the White House," she said.

Read more.

 

DNC CALLS OUT PRUITT: The Democratic Party is using EPA chief Scott Pruitt as a new call to arms for the party. In an email blast sent to supporters Wednesday afternoon, the Democratic National Committee asked followers to sign a pledge to "tell Scott Pruitt to resign."

"It's long past time for Scott Pruitt to step down as Administrator of the Environmental Protection Agency," the email read.

The plea mentions Pruitt's recent condo scandal, saying he entered into "backdoor deals with energy lobbyists while literally living under their roof."

"It's clear that Pruitt would rather cut deals with his friends in the fossil fuel industry and use taxpayer dollars for his personal benefit rather than protect our environment. It's time for him to resign," the email adds.

DNC spokeswoman Xochitl Hinojosa said that the email campaign highlights Pruitt's history of working with special interests while at the EPA.

"EPA Administrator Scott Pruitt has repeatedly showed us that he's working to help himself and special interests instead protecting the environment and helping the American people," she told The Hill. "We must hold our leaders accountable because they should be beholden to the taxpayers. That is what this petition is intended to do."

See the pledge here.

 

Why it matters: Democrats speaking out against members of the Trump administration is nothing new, but the fact that the party is now using Pruitt specifically as a way to drum up support--and potentially donations--is striking. The email blast comes a day after the first two Republican members of the House called for Pruitt to resign or be fired.

 

PRUITT GIVES PRUITT AUTHORITY TO DETERMINE WATER PROTECTIONS: It's clearly a Scott Pruitt-filled newsweek. Keeping with that cycle, the EPA administrator signed a directive on March 30 giving himself more authority to determine environmental regulations for projects near regional waterways, according to a memo obtained Wednesday.

The internal document obtained by the advocacy group Public Employees for Environmental Responsibility (PEER) gives the EPA chief final decisionmaking authority over the protections of streams, ponds and wetlands.

The one-page memo vests Pruitt with the authority to make "final determinations of geographic jurisdiction," under the Clean Water Act, also known as the Water of the United States (WOTUS) rule.

The new order heavily downplays the role of local EPA experts in the field who in the past have made the final recommendations -- and often decisions -- regarding necessary environmental protections in their region.

Environmentalists are fearful of the policy order, arguing that it could give Pruitt more power to roll back regulations on projects like coal plants located near waterways. However EPA says Pruitt will only step in on rare occasions and that the policy is meant to unify EPA decision making across regions.

 

A knock on cooperative federalism?: Some critics have pushed back on EPA's explanation of the new rule, pointing out that the idea that federal policy should be used to unify regional policies is counter to the conservative view that states, or regions, should govern themselves. Pruitt has witnessed similar criticism over his EPA decision released Monday to lower federal standards for car emissions, favoring a unified standard instead of the current one which allows states like California to determine their own needs.

Read more here.

 

DEM SCRUTINIZES PRUITT'S MOROCCO TRIP: Sen. Sheldon Whitehouse (D-R.I.) is scrutinizing Pruitt's trip to Morocco last December, saying that "disclosures raise new questions about this trip, and potential future international trips, given your close ties to the oil and gas industry."

Citing calendars he obtained from the EPA, Whitehouse said in the letter he sent to Pruitt late Tuesday that he only had one briefing before the trip and it was conducted by political staff, not career staff in the agency's international affairs office, which generally coordinates foreign trips.

On the five-day trip that the EPA has said cost taxpayers around $40,000, Pruitt only worked one full day and had one-hour meetings the days before and after.

The main purpose of Pruitt's trip was to tout American liquefied natural gas (LNG) exports, a purpose that Democrats say is not within the EPA's mission.

And in the time leading up to the Morocco trip, Pruitt met with numerous representatives of associations and companies with interests in LNG exports, including a Kinder Morgan meeting two days before the trip. That company is developing two LNG export terminals.

"If these were the individuals who advised you about your trip before you departed, it would suggest the purpose had little to do with EPA's mission and more to do with interests from your time in Oklahoma," wrote Whitehouse, a senior member of the Senate Environment and Public Works Committee.

Read more.

 

OUTSIDE THE BELTWAY:

Oil prices fell Wednesday on fears of an ongoing trade war with China, CNBC reports.

India's commerce minister doesn't think the World Trade Organization should take up environmental issues, the Times of India reports.

Seattle Mayor Jenny Durkan wants to explore congestion pricing in the city as an effort to fight climate change, the Seattle Times reports.

 

FROM THE HILL'S OPINION SECTION:

- Katie Sweeney of the National Mining Association, says that a court decision should not change the federal government's coal leasing policy.

- Adrienne Hollis of WE ACT for Environmental Justice says the Trump administration's decision to change car emissions rules is an attack on minority communities.

- Jeremy Symons, vice president for political affairs at the Environmental Defense Fund, calls EPA Administrator Scott Pruitt a "weak link" in Trump's administration.

 

IN CASE YOU MISSED IT:

Check out Wednesday's stories ...

Sanders won't say if Trump has confidence in Pruitt

-Pruitt says he didn't know about staffers' controversial pay raises

-Trump's pick to oversee wildlife policy has history of opposing Endangered Species Act

-Pruitt takes over authority for water protections policy

-Dem scrutinizes Pruitt's Morocco trip, gas industry ties

-Pruitt 'dumbfounded' that renting condo linked to top lobbyist is controversial

 
 

THE HILL EVENTS

Leadership in Action: The Hill's Newsmaker Series

Join The Hill on April 11 for Leadership in Action: The Hill's Newsmaker Series. Sen. Lamar Alexander (R-Tenn.), Rep. Nanette Barragán (D-Calif.) and Rep. Steny Hoyer (D-Md.) will sit down with Editor-in-Chief Bob Cusack to discuss congressional values, diversity and bipartisanship. RSVP today.

Latinos in College: Closing the Graduation Gap

On April 17, The Hill will gather lawmakers, university presidents and education experts for Latinos in College: Closing the Graduation Gap. Conversations will address ways to boost Hispanic college completion rates nationwide. RSVP today.

 
 

Please send tips and comments to Timothy Cama, tcama@thehill.com, and MirandaGreen, mgreen@thehill.com. Follow us on Twitter: @Timothy_Cama@mirandacgreen@thehill

 
 
 
 
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Overnight Health Care: Senate panel unveils draft of bipartisan opioid bill | Groups warn tariffs could raise drug prices | FDA chief turns to social media companies to fight opioids | AMA hits transgender troop ban

 
 
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Welcome to Wednesday's Overnight Health Care. Congress is (still) out of session, but we have our eyes on new opioid legislation in the Senate and a brewing confirmation battle at the VA.

 

Just released: New opioid legislation

The Senate Health Committee has held six hearings on the opioid epidemic over the last six months. Its leaders released the result of that effort early Wednesday evening -- a discussion draft of a bill to combat the crisis which is killing thousands of people each year.

The draft includes measures attempting to make it easier to prescribe smaller packs of opioids for limited durations, spur the development of non-addictive painkillers and bolster the detection of illegal drugs at the border.

Also of note: The draft bill updates how certain opioid grants are doled out, boosting the allotments for states that the epidemic has hit the hardest. It also would let states use the dollars they get until they run out, rather than requiring they be spent during that year.

 

The takeaway: Lawmakers hope to move quickly.

  • The panel will be holding a hearing on the draft legislation next week.
  • And Committee Chairman Lamar Alexander (R-Tenn.) has said he'd like to see opioid legislation marked up this spring.

Read a summary of the draft here.

Read our story here.

 

New tariffs could raise drug prices

There's a health-care angle on the new tariffs announced by the Trump administration: They could make drugs more expensive.

The Trump administration's list of Chinese-manufactured products that could be slapped with a 25 percent tariff includes many ingredients used to manufacture drugs such as insulin, antidepressants and the anti-allergic-reaction drug epinephrine.

China, according to the Food and Drug Administration, is one of the largest suppliers of ingredients used to make U.S.-consumed prescription drugs.

Advocates and drugmakers worry that the tariffs would make generic products more expensive as the nation continues to struggle with already high drug prices.

"We are concerned that the proposed tariffs may lead to increased costs of manufacturing for generics and biosimilars and thus higher prescription drug prices for patients in the U.S.," said a statement from the Association for Accessible Medicines, an organization that represents prescription drug manufacturers.

Why this could be trouble for the president: Advocates point out that tariffs on ingredients in drugs could undercut Trump's promise to lower drug prices. 

Read more here.

 

FDA chief turns to social media companies to fight opioids

As part of the administration's effort to step up anti-opioid abuse measures, FDA Commissioner Scott Gottlieb called on social media companies and internet providers to do more during a speech in Atlanta on Wednesday.

"I'm concerned that social media companies, internet service providers (ISP) firms that host websites, and others in the internet ecosystem haven't been proactive enough in rooting out these illegal offers to distribute opioids from their respective platforms," Gottlieb will say Wednesday evening at the annual National Rx Drug Abuse and Heroin Summit in Atlanta, according to his prepared remarks.

"I think we can work with them to do much more to address this public health danger," Gottlieb will add.

The bottom line: Opioids are the latest issue that has the tech industry under scrutiny from Washington.

Read more here.

 

AMA: "No medically valid reason" for transgender troop ban

The American Medical Association on Wednesday issued a harsh rebuke of the Trump administration's new policy banning most transgender people from serving in the military.

The AMA sent a letter to Defense Secretary James Mattis, saying that "there is no medically valid reason--including a diagnosis of gender dysphoria--to exclude transgender individuals from military service."

The transgender ban is based on recommendations from Mattis that there is a "substantial risk" to allowing service of those diagnosed with gender dysphoria, which is the condition of someone's biological sex being in conflict with their gender identity.

Mattis said that people diagnosed with gender dysphoria suffer from high rates of suicide, anxiety, depression and substance abuse and that treatment such as hormone therapy and surgery has not proven effective.

But the AMA argued that the White House and Defense Department "mischaracterized and rejected" the wide body of scientific evidence.

"Transgender individuals have served, and continue to serve, our country with honor, and we believe they should be allowed to continue doing so," the AMA said.

Read more here.

 

What we're reading

Iowa's found a new, likely legal way to ignore ObamaCare (Vox)

McKesson accused of skimming profit, harming patients (Modern Healthcare)

Sen. Susan Collins says she's not giving up on future Affordable Care Act fixes (Portland Press Herald)

 

State by state

Medicaid expansion uncertain as Maine's deadline to fund it passes (Governing)

Ohio groups, officials oppose Medicaid work requirements, as state prepares to submit waiver to federal government (Cleveland.com)

 

From The Hill's opinion pages

Tackling smoking in the black community -- a step toward eliminating health disparities

 
 

THE HILL EVENTS

Leadership in Action: The Hill's Newsmaker Series

Join The Hill on April 11 for Leadership in Action: The Hill's Newsmaker Series. Sen. Lamar Alexander (R-Tenn.), Rep. Nanette Barragán (D-Calif.) and Rep. Steny Hoyer (D-Md.) will sit down with Editor-in-Chief Bob Cusack to discuss congressional values, diversity and bipartisanship. RSVP today.

Latinos in College: Closing the Graduation Gap

On April 17, The Hill will gather lawmakers, university presidents and education experts for Latinos in College: Closing the Graduation Gap. Conversations will address ways to boost Hispanic college completion rates nationwide. RSVP today.

 
 

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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Overnight Finance: Markets freak out then rally after dueling China, US tariffs | Private sector adds 241k jobs in March | Tech rivalries spill into Washington

 
 
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Happy Wednesday and welcome back to Overnight Finance, your stable island of sanity amid a volatile stock market. 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: Fears of a growing trade war spiked again Wednesday, with dueling tariffs from the U.S. and China plunging the stock market into temporary losses.

China announced Wednesday that it would impose 25 percent tariffs on imports of U.S. soybeans, airplanes and automobiles in a package affecting $50 billion of U.S. goods. The announcement came after the White House announced on Tuesday a similar $50 billion tariff package targeting Chinese electronics, shoes, furniture and other imports.

The stock market--which has melted down several times this year over President Trump's trade policy and the retaliation it's inspired--didn't like that.

The Dow Jones Industrial Average opened close to 500 points lower Wednesday morning, a roughly 2 percent drop. The S&P 500 index and Nasdaq each opened 1.4 percent lower, while industrial and materials sector stocks took the heaviest losses.

Dow futures fell close to 500 points before Wednesday's open, implying a major loss once trading began at 9:30 a.m. S&P futures fell 1.3 percent afterhours, while Nasdaq futures dropped 1.6 percent.

It was the latest market dive seemingly triggered by Trump's tariffs. Stocks also took heavy losses on Monday, when China announced tariffs on 128 U.S. goods in response to Trump's steel and aluminum tariffs. That helped send the Dow 459 points lower on Monday.

But markets rebounded by Wednesday afternoon, with all three indexes posting gains at the closing bell. The Dow ended the day roughly 1 percent higher, while the Nasdaq and S&P increased 1.45 percent and 1.16 percent each.  

 

So what was behind the swing? Part of it could stem from the overall economic impact of the tariffs, assuming neither the U.S. nor China add further levies. While China's tariffs on U.S exports could take a toll on American manufacturers and farmers, they're not expected to take a leave a bit hit on the economy.

Mark Zandi, Moody's chief economist, said he expects the tariffs to shave off 0.3 percent of GDP and cost 190,000 jobs. That would be a setback for the U.S. and certainly harm key industries, but it wouldn't amount to the widespread economic chaos feared by some investors.

 

Even so, the White House did quite a bit of damage control as the market freaked. Commerce Secretary Wilbur Ross, charged with imposing and defending the tariffs, told CNBC that were "hardly a life-threatening activity.

"It's relatively proportionate to the tariffs we put on based on the intellectual property," he said.

And National Economic Council Director Larry Kudlow told reporters that the tariffs could be a negotiating tactic and may never be imposed, though he warned that Trump should be taken "seriously" on the issue.

 

Reactions: 

  • "I am nervous about getting into trade wars and I hope this doesn't go too far."  -- Senate Majority Leader Mitch McConnell (R-Ky.).
  • "We cannot let this continue!" -- President Trump about what he sees as unfair trade with China. He also insisted the U.S. is not in a trade war.
  • "Farmers and ranchers shouldn't be expected to bear the brunt of retaliation for the entire country." -- Sen. Chuck Grassley (R-Iowa).
  • "Illinois' farmers now join DACA recipients as the latest victims of President Trump's temper." -- Sen. Dick Durbin (D-Ill.).
  • "Wall Street supported and cheered on the export of [middle-class] jobs. To hell with Wall Street if they don't like it." -- Steve Bannon, a former Goldman Sachs banker.

 

What comes next: The financial world will remain on high alert for further tariffs while U.S businesses dig in for consequences. The Hill's Niv Elis takes a look at the ways the most vulnerable sectors of the U.S. economy are preparing for the imposition of tariffs. It's an essential read on a day like today.

 

LEADING THE DAY

Jobs! U.S. businesses kept up a solid hiring pace in March, adding 241,000 jobs as the labor market continues to tighten amid an expanding economy.

Private-sector companies have added at least 200,000 jobs to their payrolls each month since November, according to payroll processor ADP's latest report released on Wednesday.

March's job additions were slightly slower than the 246,000 pace in February, which was higher than the 235,000 initially reported.

PNC chief economist Gus Faucher said the job growth is consistent with his firm's economic outlook that found 85 percent of businesses are optimistic, with about one-third expecting to hire over the next six months and half set to increase compensation.

Businesses have added 728,000 jobs in the first three months of the year, for a three-month average of more than 242,000. The Hill's Vicki Needham dives into the data for us here.

 

Tech rivalries are spilling into Washington as the industry faces growing internal battles that have divided a once-unified front binding Silicon Valley and Seattle.

Power struggles among technology companies are not new. But the size, diversity, influence and earnings of the tech sector have only grown since then, which has raised the stakes.

"The funniest thing is the myth that tech has been monolithically unified and has never had differences, that tech is one big happy family and they agree on issues and they have each other's back in lobbying -- you mess with one and you mess with all," said Bruce Mehlman of Mehlman Castagnetti Rosen & Thomas.

"The tech industry in Washington is as quarrelsome and divided and eager to mess with each other as they are in Silicon Valley and the marketplace."

The Hill's Megan R. Wilson and Ali Breland walk us through the latest flashpoints and what they mean for the future of major tech companies--and their customers. 

 

Fitch sees peak of credit cycle in U.S. From Fitch: "A significant loosening of underwriting standards points to the U.S. leveraged debt market being in the later stages of the credit cycle, says Fitch Ratings in a special report published today. Aggressive documentation terms now prevalent could challenge recoveries in the next downturn. However, a surge in refinancing activity since 2016 should increase time between the credit cycle's bottom and peak in default rates."

 

GOOD TO KNOW

  • Treasury Secretary Steven Mnuchin and White House budget director Mick Mulvaney are squabbling over whose department gets to put the finishing touches on the new tax code, according to the New York Times
  • Several major labor groups are pressing corporations over how they expect to benefit from the GOP tax law and use their savings as the unions prepare to bargain new contracts for workers.
  • Facebook says up to 87 million people could be affected by the Cambridge Analytica scandal. The initial figure was roughly 50 million people.
  • Comptroller of the Currency Joseph Otting lays out his plans for tackling the Bank Secrecy Act, financial technology banking charters, and more.

 

ODDS AND ENDS

  • The median sale price of a house in San Francisco soared to $1.6 million in the first quarter, an almost 24 percent jump from a year earlier, according to Bloomberg.
  • A US-China trade war could threaten embattled Tesla most among automakers, reports CNBC.
 
 

THE HILL EVENTS

Leadership in Action: The Hill's Newsmaker Series

Join The Hill on April 11 for Leadership in Action: The Hill's Newsmaker Series. Sen. Lamar Alexander (R-Tenn.), Rep. Nanette Barragán (D-Calif.) and Rep. Steny Hoyer (D-Md.) will sit down with Editor-in-Chief Bob Cusack to discuss congressional values, diversity and bipartisanship. RSVP today.

Latinos in College: Closing the Graduation Gap

On April 17, The Hill will gather lawmakers, university presidents and education experts for Latinos in College: Closing the Graduation Gap. Conversations will address ways to boost Hispanic college completion rates nationwide. RSVP today.

 
 

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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