Overnight Finance: House to vote on farm bill with food stamps revamp next week | Watchdog wants DOJ probe of Cohen's dealings | NAFTA talks hit roadblock over cars | Treasury hits largest April surplus on record at $214.3B

View in your browser     Happy Thursday and welcome back to Overnight Finance, the newsletter with no term limit. 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: The House will vote on a GOP farm bill next week that would impose tougher work requirements on food stamp recipients. The revamp of the Supplemental Nutrition Assistance Program (SNAP), also known as food stamps, is considered a legacy item for Speaker Paul Ryan (R-Wis.), who has sought to enact welfare reform as part of his "Better Way" agenda. The farm bill includes language that would tighten the work requirements for millions of food stamp recipients and shift more federal funding toward job training. The thinking is that this will help lift people out of poverty and get welfare recipients back on their feet. But the GOP conference is divided over the changes, with some moderate Republicans worried the requirements are too tough and others worried the changes don't go far enough. Democrats have blasted the legislation as nothing more than a messaging bill, noting that the measure stands little chance of passing the Senate. The Hill's Melanie Zanona explains the showdown here.   Why it matters: Under the measure, all able-bodied adults between the ages of 18 and 59 have to be working or enrolled in a training program for at least 20 hours per week in order to qualify for food stamps. People who are elderly, disabled or pregnant would be exempt from the requirements. Battles are also expected over the federal sugar subsidy program, which is authorized by the farm bill and is routinely a fight that cuts across party lines.   LEADING THE DAY Watchdog asks DOJ to probe Cohen dealings: A government watchdog group is asking the Justice Department and officials on Capitol Hill to investigate whether President Trump's longtime personal lawyer Michael Cohen violated lobbying laws.  Public Citizen on Thursday sent a complaint to Attorney General Jeff Sessions, as well as offices in the House and Senate that oversee the compilation of lobbying disclosure records, requesting a probe into whether Cohen willingly failed to file reports about his clients. The complaint comes after reports surfaced this week that Cohen amassed a handful of corporate clients following Trump's election in 2016, and that the lawyer reportedly promised them access to the new administration. Key quote: "The public record thus far strongly suggests that Cohen made specific solicitations to companies who had business pending before the Trump administration, proposing that he could best assist in the pursuit of their interests, which could well constitute lobbying activity," Public Citizen wrote in its complaint. AT&T and pharmaceutical giant Novartis are two companies that confirmed they paid Cohen for his insights. Cohen roundup: The storm around Cohen is growing and casting a shadow on the White House. AT&T also reportedly paid Cohen for advice on its merger with Time Warner, The Washington Post reports. Rudy Giuliani meanwhile told The Hill the media needs to "calm down" about the payments to Cohen.   NAFTA talks hit roadblock over auto imports: From The Washington Post: "Negotiations over a new North American trade deal have hit a major snag, leaving White House officials increasingly uncertain of their ability to hit their May 18 deadline for securing congressional approval of a new deal before year's end. "The main stumbling block involves a dispute over determining which automobiles are given duty-free treatment under the agreement, according to five industry and U.S. government sources. "After almost nine months of negotiations, the United States and its trading partners, Canada and Mexico, remain far apart on a host of contentious issues, including U.S. demands that the treaty must be renewed every five years."   Treasury hits largest April surplus on record at $214.3 billion: The U.S. Treasury Department posted a banner month in April, with a financial surplus of $214.3 billion, the largest April surplus on record, according to the department's monthly statement on receipts and outlays. April is typically a surplus month for the Treasury, as taxpayers file and shell out sums they owe the government. But the April surge does not necessarily portend good news for the overall deficit. The Treasury report still estimated that the annual deficit would boom this year, rising to $833 billion from roughly $665 billion in 2017. The cumulative deficit for the fiscal year is already $41 billion higher than at the same point last year, according to the report. The Hill's Niv Elis breaks it down here.   Flake says he won't vote to make individual tax cuts permanent: Sen. Jeff Flake (R-Ariz.) on Thursday said he wouldn't vote to extend the new tax law's individual cuts, arguing it would be a "show vote" on legislation with no chance of passing. "I think that that is an act of bad faith, to pass something to fit it under the budget window and then as soon as you get past that political peril, then you go and have a show vote to make the tax cuts permanent when all it is is an election maneuver," he said at an event hosted by the Peter G. Peterson Foundation. Republicans have been discussing holding a vote this year on permanently extending the individual tax cuts. While a bill to do so would be unlikely to pass the Senate, many Republicans view the vote as a smart political move to force Democrats to go on the record in an election year. Flake, however, said he's "going to have problems" if there's a desire to make the individual cuts permanent without any offsets or an agreement to cut mandatory spending. The Hill's Naomi Jagoda tells us why. House to take up Senate's Dodd-Frank rollback before Memorial Day: House Majority Leader Kevin McCarthy (R-Calif.) said Thursday that the House will vote on the Senate's bipartisan bill to loosen Dodd-Frank before Memorial Day. The announcement is the latest positive sign for banks and credit unions who've been pushing the House to act for months. It's not major news, as McCarthy and Ryan have said for a couple of weeks now that the Senate bill should be done by Memorial Day. But the announcement should help dispel lingering concerns about the bill getting lost in the legislative sprint toward the midterm elections.   MARKET CHECK: Stocks had a day of healthy gains, with all three major indexes rising close to 1 percent each. The Dow Jones Industrial Average rose 0.80 percent on a 196-point spike, while the S&P 500 and Nasdaq rose 0.94 and 0.89 percent respectively.   FINANCE IN FOCUS: Congress, Trump eye new agency to invest in projects overseas. Lawmakers are pushing to revamp the way the U.S assists and invests in struggling countries, finding a rare area of agreement with President Trump when it comes to foreign aid. With little fanfare, lawmakers are advancing two identical bipartisan bills in the House and Senate that would consolidate several federal international development agencies and expand their investment tools. The White House is onboard, making it one of the few times the president has sought to bolster, rather than slash, the foreign aid system. Key foreign allies and businesses groups are supportive of the legislation, which, so far, has faced little opposition in Congress. The effort would create a new U.S. International Development Finance Corporation (IDFC) to replace the Overseas Private Investment Corporation (OPIC). That entity invests in and draws private capital to international development projects meant to advance U.S. interests. I'll have more on that plan and how it would work on TheHill.com tomorrow morning.   GOOD TO KNOW Acting CFPB Director Mick Mulvaney announced a sweeping reorganization of the bureau that could see the acting director have more influence over enforcement and supervision and lead to more political oversight of its consumer complaint database, according to Bloomberg Law. Economists surveyed by The Wall Street Journal expect the next recession to start in 2020. The Washington Post looks inside the GOP struggle to sell voters on its tax law. Kentucky landscapers and contractors told McClatchy that the Trump administration's cuts to the H-2B foreign seasonal labor program may put them out of business. A group of Democratic senators is asking White House budget chief Mick Mulvaney to release details of his schedule following comments he made about meeting with lobbyists who donated money to his campaign. Wells Fargo CEO Timothy Sloan said the bank's asset cap imposed by the Federal Reserve will continue into the first part of 2019, according to The Wall Street Journal.   ODDS AND ENDS Russian tycoon Oleg Deripaska has handed back three private jets he was leasing because U.S. sanctions imposed on him last month make it impossible to keep using the planes, the firm retained by the owners to sell the aircraft told Reuters on Thursday. A labor union for Harley-Davidson met with House Minority Leader Nancy Pelosi (D-Calif.) this week to criticize the motorcycle maker after the company announced plans to build a plant in Thailand while closing a factory in Missouri.     Write us with tips, suggestions and news: slane@thehill.com, vneedham@thehill.com, njagoda@thehill.com, and nelis@thehill.com. Follow us on Twitter: @SylvanLane,  @VickofTheHill, @NJagoda, and @NivElis.         Did a friend forward you this email? Sign up for Finance Newsletters     Forward Finance Newsletters       Privacy Policy  |  Manage Subscriptions  |  Unsubscribe  |  Email to a friend  |  Sign Up for Other Newsletters   The Hill 1625 K Street, NW 9th Floor, Washington DC 20006 ©2016 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.

Hillicon Valley: House Dems release Russia-linked Facebook ads | Bill would block feds from mandating encryption 'back doors' | AT&T hired Cohen for advice on Time Warner merger | FCC hands down record robocall fine | White House launches AI panel

View in Browser     Welcome to Hillicon Valley, The Hill's comprehensive newsletter with all you need to know about tech and cybersecurity from Capitol Hill to Silicon Valley.   Welcome! Follow the tech team, Ali Breland (@alibreland) and Harper Neidig (@hneidig), and the cyber team, Morgan Chalfant (@mchalfant16) and Olivia Beavers (@olivia_beavers), on Twitter. Scoops/tips/comments/compliments? Please reach out to us.   HOUSE INTEL MAKING HEADLINES... First up, Facebook ads. Democrats on the House Intelligence Committee on Thursday released thousands of copies of Kremlin-linked Facebook advertisements used during the 2016 presidential election, a data dump that provides a greater understanding of a Russian company's disinformation campaign across social media. The lawmakers released more than 3,500 Facebook ads purchased by the Internet Research Agency, a Russian firm with ties to the Kremlin. Over 11.4 million American users were exposed to these ads between 2015 and 2017. "There's no question that Russia sought to weaponize social media platforms to drive a wedge between Americans, and in an attempt to sway the 2016 election," Rep. Adam Schiff (D-Calif.), the top Democrat on the committee, said in a statement. "They did this by creating fake accounts, pages and communities to push divisive online content and videos, and to mobilize real Americans, unwittingly, to sign online petitions and join rallies and protests."  An NBC news report highlighted a number of the ads in the release, noting that ads targeted a wide audience including fans of conservative Fox News hosts Sean Hannity and Bill O'Reilly, fans of the Black Lives Matter movement and those interested in LGBT-centric topics. To read more of our piece, click here.   Meanwhile, Republicans are pressing on with their request for DOJ records. Speaker Paul Ryan (R-Wis.) is backing the latest efforts of House Intelligence Chairman Devin Nunes (R-Calif.) to obtain classified documents from the Department of Justice (DOJ) as it relates to the federal investigation into Russian election meddling. "I think this request is wholly appropriate and is completely within the scope of the investigation that has been ongoing for awhile with respect to [the Foreign Intelligence Surveillance Act]," Ryan said Thursday during his weekly press conference.  "I actually think this is something that should have been answered a while ago," he added. The precise nature of the information Nunes is pursuing remains unclear but Ryan said he arrived at this conclusion after talking to the key players involved in the matter, including Nunes, House Oversight Chairman Trey Gowdy (R-S.C.), and Deputy Attorney General Rod Rosenstein. Nunes and Gowdy are expected to visit the DOJ on Thursday afternoon to receive a briefing about the request, Fox News reported Thursday. To read more of our piece, click here.   A LEGISLATIVE UPDATE: Lawmakers unveil encryption bill. A bipartisan group of House lawmakers have introduced legislation that would block the federal government from requiring technology companies to design devices with so-called "back doors" to allow law enforcement to access them. The bill represents the latest effort by lawmakers in Congress to wade into the battle between federal law enforcement officials and tech companies over encryption, which reached a boiling point in 2015 as the FBI tussled with Apple over a locked iPhone linked to the San Bernardino terror attack case. Some context: Top FBI and Justice Department officials have repeatedly complained that they have been unable to access devices for ongoing criminal investigations because of encryption. FBI Director Christopher Wray has suggested that devices could be designed to allow investigators to access them, though he insists the bureau is not looking for a "back door." What's in the bill? The bipartisan bill introduced Thursday would prohibit federal agencies from requiring or requesting that firms "design or alter the security functions in its product or service to allow the surveillance of any user of such product or service, or to allow the physical search of such product" by the government. The bill would also block courts from issuing an order to compel companies to design products with "back doors" to allow for surveillance or law enforcement searches. The legislation makes an exception for mandates, requests or court orders that are authorized under the Communications Assistance for Law Enforcement Act, a 1994 law requiring telephone companies to make changes to their network design in order to make it easier for the government to wiretap phone calls. Rep. Zoe Lofgren (D-Calif.) introduced the legislation along with Reps. Ted Lieu (D-Calif.), Jerry Nadler (D-N.Y.), Matt Gaetz (R-Fla.), Thomas Massie (R-Ky.) and Ted Poe (R-Texas). Also noteworthy: The bill's introduction comes the same week that Attorney General Jeff Sessions said Congress may ultimately need to "take action" to solve the encryption problem. He and other officials have said the FBI was unable to break into thousands of devices last year despite having a warrant to probe them. To read more, click here.   NET NEUTRALITY IS DEAD NEXT MONTH: Net neutrality rules in the U.S. are set to end in June, the Federal Communications Commission (FCC) announced Thursday. The FCC confirmed during its monthly open meeting that it has set the end date for the rules as June 11. The FCC voted 3-2 along party lines late last year to scrap its 2015 Open Internet Order, despite backlash from Democrats and protesters calling for an open internet. FCC Chairman Ajit Pai has argued the agency overstepped when it imposed the restrictions. Critics though say repealing the rules would allow for major internet companies, such as Comcast or Verizon, to abuse their powers as internet gatekeepers and drive up the costs of internet use. The decision led to multiple lawsuits to save net neutrality and has prompted lawmakers to introduce legislation that would reinstate the rules. Don't forget: On Wednesday, Senate Democrats officially began their push to force a vote on net neutrality under the Congressional Review Act. If the resolution is passed by Congress and signed by President Trump it would reverse the repeal of net neutrality measures. That's highly unlikely though. Check out our piece here.   TOP WHITE HOUSE CYBERSECURITY ROLE IN DANGER? Politico has a story this week that has many cybersecurity experts worried. National security adviser John Bolton is said to be considering doing away with the cybersecurity coordinator position at the White House. The role is currently held by Rob Joyce, who revealed last month that he had decided to return to his post at the National Security Agency rather than continuing in his post at the White House. Joyce, who led the NSA's elite Tailored Access Operations unit, was on detail from the agency to the White House. In response to Politico's report, one of the more cyber-focused lawmakers in the House, Rep. Ted Lieu (D-Calif.) said eliminating the cyber role would "endanger our economy, critical infrastructure, and possibly American lives." "This is yet another example of the Trump Administration talking a big game on national security but taking steps that directly undermine our ability to combat emerging threats," Lieu said. "At a time when terror groups and nation states are beefing up their cyber capabilities, the Administration has signaled that it's apparently time to weaken our defenses." Check out Politico's story here.   RECORD ROBOCALL FINE: The Federal Communications Commission (FCC) on Thursday announced that it had issued a $120 million fine to a man in Florida for making millions of robocalls. The FCC said on Thursday that it formally handed Adrian Abramovich the record fine for making almost 100 million robocalls in three months. The agency had previously proposed the fine in 2017 but is now coming through on its promise to reprimand Abramovich. "Tough enforcement is a key part of the FCC's robust strategy for combating illegal robocalls." But it's not quite that clear cut. The FCC has a complicated relationship with robocalls. Chairman Ajit Pai has delivered tough talk on robocalls, which are universally unpopular. But he's also been reluctant to draft new, stronger regulations to address the problem. Read more here.   WHITE HOUSE HAS NEW ARTIFICIAL INTELLIGENCE PANEL: The White House announced Thursday that it will establish a panel of federal government officials to look at issues dealing with artificial intelligence (AI). The Trump administration announced the new Select Committee on Artificial Intelligence on the same day that it held a major AI summit with business leaders in Washington. The AI panel will include officials from the White House Office of Science and Technology Policy, the National Science Foundation and the Defense Advanced Research Projects Agency (DARPA). The committee's representatives will also include officials from the National Security Council (NSC), the Office of the Federal Chief Information Officer and the Office of Management and Budget (OMB). --It's about time... is what the technology is secretly thinking about this after pushing the White House to get more involved in artificial intelligence. R. KELLY IS OFF SPOTIFY PLAYLISTS: Spotify is removing R. Kelly's music from its algorithmic and curated playlists under its new hate content and hateful conduct policy. The music-streaming service told Billboard that, in addition to removing Kelly's songs from Spotify-operated playlists, it would no longer promote the R&B artist's music. "We are removing R. Kelly's music from all Spotify owned and operated playlists and algorithmic recommendations such as Discover Weekly," Spotify said. Read more here.   A LIGHTER CLICK: 50 Cent has thoughts about Instagram's content enforcement practices.   NOTABLE LINKS FROM AROUND THE WEB: A lawsuit challenging warrantless phone searches at the border is allowed to proceed. (Electronic Frontier Foundation) Lawmakers approved a pilot program allowing the military to support cyber critical infrastructure protection as part of an annual defense policy bill. (NextGov) Trump thinks Comcast is "public enemy number 1," according to a Trump friend. (Fox Business News) The hidden threat of Siri that you didn't know about. (The New York Times) Can Snapchat survive the redesign everyone hates? (Vanity Fair) Apple is reportedly working with Goldman Sachs to create a joint credit card. (The Hill)           Did a friend forward you this email? Sign up for Technology Newsletters     Forward Technology Newsletters       Privacy Policy  |  Manage Subscriptions  |  Unsubscribe  |  Email to a friend  |  Sign Up for Other Newsletters   The Hill 1625 K Street, NW 9th Floor, Washington DC 20006 ©2016 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.

Overnight Health Care: The 'forgotten people' of the opioid epidemic | What to expect from Trump's big drug pricing speech | GOP senator pushes mandatory Medicaid work rules

Welcome to Thursday's Overnight Health Care, where we're working for the weekend -- but also for President Trump's drug pricing speech tomorrow. What we know: Trump's reforms will target every facet of the industry. But will Trump repeat his refrain that drug companies are "getting away with murder?" Will he go off script? If we take HHS Secretary Alex Azar at his word, the speech will basically cover EVERYTHING. We'll be ready.   But first, meet the "forgotten people" of the opioid epidemic. That's Native Americans, who are among the hardest hit. Yet scant attention has been paid to how the crisis is ripping through their communities. Consider the numbers: Native Americans and Alaska Natives have the second highest opioid overdose fatality rate of any race. But the underreporting is far greater than that of other groups, perhaps as high as 30 percent, according to Robert Anderson, the CDC's chief for its mortality statistics branch. What Native Americans are doing: At least 20 tribes have sued drug manufacturers and distributors over the opioid crisis, and at least 10 more lawsuits are under contract and are expected to be filed soon. They're joining the lengthy list of hundreds of counties, cities and other health care stakeholders who are filing lawsuits. All the cases have been consolidated in Cleveland, Ohio, in what's known as a multidistrict litigation. The point is to save time and money, while also ensuring pre-trial rulings are consistent. Key quote: "Native Americans are a forgotten people when it comes to this crisis," said Jeff Gaddy, an attorney at Levin Papantonio who has been working to file opioid lawsuits, including for the Seneca Nation of Indians. "The Senecas, as well as other tribes across the country, are refusing to accept that and filing lawsuits to hold big pharma accountable for the harms that they've caused," Gaddy said. The tribe's president, Todd Gates, said he would like to use settlement money, if it comes, to fund prevention and treatment. Read more here.   More on opioids: A package aimed at addressing the opioid crisis will likely be on the House floor in June, according to a spokesperson for Majority Leader Kevin McCarthy (R-Calif.). House Energy and Commerce Chairman Greg Walden (R-Ore.) had been aiming for a vote by Memorial Day weekend; the legislation is currently going through the committee process, with a final mark up before the full committee next week.   Azar drops hints on Trump's big drug pricing speech The health care world is eagerly waiting to see what Trump says tomorrow... and who gets hit the hardest. HHS Secretary Alex Azar dropped some hints at a Senate hearing on Thursday, saying that basically everyone in the drug pricing world will be on the hook. Key quotes: "Tomorrow the president will be rolling out a comprehensive plan around drug pricing that addresses all aspects of the channel including the role of the pharmacy benefit manager, drug companies, others in the system," Azar said. Asked specifically if the plan will target drug companies themselves, Azar said, "Yes it will. All players will be impacted." What to watch: Azar says drug companies will be hit, but we'll be watching how much of the plan goes after drug companies directly and how much targets other actors, like the negotiators known as pharmacy benefit managers, which are also expected to take a blow. Read more here.   Azar also defended the administration's proposed rule on short-term plans. Democrats pushed Azar to explain why the administration wants to expand the sale of cheap, skimpy insurance plans.  His answer? More choice for people getting priced out of ObamaCare. The explanation: "These short term plans are the same ones the Obama administration had for eight years," Azar said. He emphasized that the short-term plans "may not be the right option for everybody" but noted that for some individuals, "it may be better than nothing." Cheap plans, high premiums? Democrats argue more short-term plans will result in steep premium increases because young healthy people will flee the ObamaCare individual market in favor of much cheaper plans. Why are they so cheap? They don't have to cover as much. No pre-existing condition guarantees, no maternity care, mental health or prescription drug coverage. Read more here   Mandatory Medicaid work requirements? If Sen. John Kennedy (R-La.) has his way, the federal government would require states to impose a 20-hour weekly work requirement on Medicaid beneficiaries. At least it's an ethos: Kennedy said he believes in the "dignity of work," a phrase used by many Republicans, including CMS Administrator Seema Verma to describe why work requirements are good for Medicaid beneficiaries. No ties to coverage? Kennedy, said he wants to focus on finding people jobs, not punishing them for being unemployed. That's a change from the waivers that have been approved so far, which cut off coverage if people don't meet the work requirements. "We don't want to throw people out in the cold, but we want to help them understand the dignity of work," Kennedy said. The catch: But without cutting off coverage, it's not a work requirement, so much as just a work suggestion. And currently, states that impose work requirements don't have to provide any funding for job training or job search. Read more here.   This may come as a shock to all you health care readers out there, but the issue isn't voters' top concern in the midterm elections. Rather, it's shaking out to be a referendum on President Trump, according to a Kaiser Family Foundation poll. The poll found a congressional candidate's stance on the president to be the top concern for voters. But, among policy areas, health care ranks No. 1 for Democrats. The issue is much further down the list for Republicans -- No. 4 -- and it's tied for second amongst Independents. Read more here.   Fentanyl is a main driver of opioid overdose deaths, and 85 percent of the drug that's intercepted is seized at ports of entry. But a report from Sen. Claire McCaskill (D-Mo.) claims that staffing shortages at the country's ports of entry could be undermining federal efforts to seize a powerful synthetic opioid. U.S. Customs and Border Protection (CBP) is currently about 4,000 port officers short of what the agency needs, according to a report from minority staff on the Senate Homeland Security and Governmental Affairs Committee released Thursday. Read more here.   What we're reading Trump drug-pricing speech adds dose of uncertainty for healthcare investors (Reuters) FDA seeks injunction to stop two stem cell companies after patients blinded (The Washington Post) For the babies of the opioid crisis, the best care may be mom's recovery (Kaiser Health News)   State by state Illinois wants to provide health care with virtual technology (Associated Press) In Wisconsin: Day 7 on hunger strike - Milwaukee Public Schools union organizer demands health care for substitute teachers (Milwaukee Journal Sentinel) A contentious West Virginia Senate race pits two candidates with close ties to pharma (Stat)   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.         Did a friend forward you this email? Sign up for Healthcare Newsletters     Forward Healthcare Newsletters       Privacy Policy  |  Manage Subscriptions  |  Unsubscribe  |  Email to a friend  |  Sign Up for Other Newsletters   The Hill 1625 K Street, NW 9th Floor, Washington DC 20006 ©2016 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.