Principals

1. Semafor hires Congressional Bureau Chief
2. Trump heads to the Hill
3. G7 leaders meet
4. Missing Menendez
5. Fed holds tight
6. Garland contempt vote
7. IC tackles foreign election influence

PDB: Heritage Action threatens to oppose NDAA

Biden in Italy … Southern Baptists oppose IVF … Yellen in NYT: ‘Use Russia’s Assets to Support Ukraine’

— edited by Benjy Sarlin, Jordan Weissmann and Morgan Chalfant

Everett to Semafor

We’re thrilled to share the news with you first that the thoughtful and deeply sourced Politico star Burgess Everett will be joining us in September as Congressional Bureau Chief, working with Kadia, Joseph and the Principals team. Burgess, a dominant Senate reporter, will be breaking news on the Hill and delivering nuanced analysis of U.S politics and government. The announcement is part of Semafor’s strategic investment in the Beltway and follows the appointment of fellow Mainer Bennett Richardson as General Manager & Global Head of Public Affairs. “Burgess is one of a handful of elite Washington reporters, and I’ve been trying to hire him since well before we launched Semafor. I take his arrival as a vote of confidence, and an opportunity to keep raising our game,” said Semafor editor-in-chief Ben Smith in our press release. Burgess, characteristically, said he was “eager to let the reporting speak for itself.”

Trump’s big meeting with Capitol Hill Republicans

Former President Trump will meet with House and Senate Republicans today, his first face time with GOP lawmakers since his Manhattan felony conviction. Trump critics such as Sens. Susan Collins, Mitt Romney, and Lisa Murkowski are skipping, citing scheduling conflicts. (GOP Sen. Todd Young, who isn’t endorsing Trump, said “No Trump questions!” when approached by Semafor in a hallway). But: Senate Minority Leader Mitch McConnell, who hasn’t spoken with Trump since December 2020, plans to attend. “He’s earned the nomination by the voters all across the country and of course I’ll be at the meeting tomorrow,” McConnell said. Possible discussion topics include the upcoming election and the GOP’s governing agenda. “I think it’s good to touch gloves and get prepared for the sprint to November,” said Texas Sen. John Cornyn.

— Joseph Zeballos-Roig

US, Ukraine will deepen ties at G7

President Biden and Ukrainian President Volodymyr Zelenskyy will sign a bilateral security agreement today on the sidelines of the G7 to solidify US support for Kyiv. But the pact won’t necessarily be binding, meaning Donald Trump — whose potential return, and the surge of the far right in Europe, are coloring the meeting — won’t need to honor it if he regains the White House. The US and allies have reached a leader-level agreement on using profits from foreign assets to secure $50 billion for Ukraine, per the Financial Times, but a lot of the details will still need to be worked out. “We are on the verge of a good outcome here,” White House national security adviser Jake Sullivan told reporters this morning. The US also rolled out new sanctions and export controls to squeeze Russia’s defense sector and economy, including targeting several Chinese companies.

Immigration activists are starting to miss Bob Menendez

In the eyes of immigration advocates, New Jersey Sen. Robert Menendez’s legal troubles couldn’t have come at a worse moment, Semafor’s Joseph Zeballos-Roig writes. Seen for decades as a critical ally, the Democrat is in the middle of a corruption trial that’s sapped his influence and sidelined him from the immigration debate as the White House has leaned hard into border enforcement policies that horrify activists. “It’s devastating to lose Menendez,” one advocate told Semafor. “He was the only one willing to go hard to fight for things.” California Sen. Alex Padilla seems to have inherited Menendez’s mantle as the chief progressive voice on immigration issues, but some worry he lacks the same brawling spirit. “Padilla has not yet shown that he’s willing to pick a fight with leadership, demand things and force votes on good immigration policies,” another advocate said.

An Inside Look at Media and Marketing’s Annual Gathering

Starting Monday, the Semafor Media team will launch a free pop-up Cannes newsletter, your ultimate guide to navigating the panels, parties, and yachts on the Côte d’Azur. Get the scoop on key moments, influential people, and big ideas of the festival. Whether you’re attending or just curious about the deals and connections being made, Semafor Cannes is your go-to resource. Sign up for free.

Fed holds steady — for now — as inflation tumbles

Wednesday brought a couple doses of good news for anyone hoping the Fed might still slice interest rates this year. The morning started with a surprisingly cool inflation report, which saw the headline consumer price index flat for May. In the afternoon, Federal Reserve officials announced they would leave rates steady for the time being, but most members of the Federal Open Markets Committee projected at least one cut before the end of 2024. During his press conference, Chair Jerome Powell emphasized he and his colleagues wanted more proof that inflation is returning to their 2% target before loosening monetary policy. “Readings like today’s, that’s a step in the right direction,” he said. “But one reading — it’s only one reading — you don’t want to be too motivated by any single data point.” Still, cuts very much remain on the table.

Republicans hold their majority together to punish Garland

House Republicans voted to hold Attorney General Merrick Garland in contempt of Congress for failing to turn over subpoenaed audio tapes of President Biden’s interview with special counsel Robert Hur, overcoming their slim majority. The 216-207 vote fell almost completely along party lines; Rep. Dave Joyce was the only Republican member to vote against the measure. “As a former prosecutor, I cannot in good conscience support a resolution that would further politicize our judicial system,” Joyce said. House Speaker Mike Johnson called the move necessary to maintain the “integrity of our oversight processes,” while Garland accused the body of turning a “serious congressional authority into a partisan weapon.” The measure now goes to the US attorney in Washington, who can decide whether to prosecute. There’s slim to none chance prosecutors will move forward with a case.

Intel officials are flagging more potential foreign election threats

Russia poses the “primary threat” when it comes to foreign election influence and interference ahead of the November US election, an official with the Office of the Director of National Intelligence told reporters during a briefing on Wednesday that offered a window into how the intelligence community is knocking down foreign threats this election cycle. ODNI officials discussed at length a relatively new notification system the intel community is using to flag — or “nominate” — intelligence on potential foreign influence or interference efforts that could be serious enough to notify a campaign or candidate, or even to publicly identify the threat. One of the officials said they are seeing “a higher number of nominations” than 2020 — a possible indication of threats increasing — but declined to say how many of those reports actually translated to the government notifying a campaign.

— Morgan Chalfant

Beltway Newsletters

Punchbowl News: A group of Senate Republicans is announcing today that they will block quick confirmation of nearly four dozen of President Biden’s nominees to protest Donald Trump’s conviction in his Manhattan hush-money trial.

Playbook: Trump’s agenda for his meetings with Republicans today: articulate his opposition to Social Security and Medicare cuts; plans for a border crackdown; an economic policy vision; and a “U-turn on Biden’s foreign policy priorities.”

WaPo: Trump’s visit to Capitol Hill will cast attention on Republicans who haven’t yet endorsed him, including five of the 16 House Republicans who represent Biden-won districts.

Axios: Polling suggests Trump is “making stunning inroads with young voters.”

White House

• President Biden will participate in several meeting sessions at the G7 in Fasano, Italy; hold an event on the Partnership for Global Infrastructure and Investment; view a skydiving demonstration; and hold a joint press conference with Ukrainian President Volodymyr Zelenskyy.
• After Hamas requested changes to the US-backed ceasefire proposal, the White House said it would work with Egypt and Qatar to bridge the gaps. “Our view is that the time for haggling is over,” national security adviser Jake Sullivan said. “It’s time for a ceasefire to begin and for the hostages to come home.”
• White House press secretary Karine Jean-Pierre wouldn’t say if Biden would commute his son Hunter’s sentence for his conviction on gun charges earlier this week.

Congress

• Today, the House will continue voting on the NDAA, which may become a Christmas tree for controversial amendments.
• Heritage Action is threatening to withdraw its support of the National Defense Authorization Act if the bill doesn’t include an amendment that would ban the Defense Department from paying transportation costs to members traveling for abortions and fails to include language to curb US dollars from flowing into China, according to a letter obtained by Semafor’s Kadia Goba that was distributed to members’ offices.
• House Democrats are considering starting a discharge petition to eventually force a vote on legislation protecting access to IVF. — Axios
• Sen. Lindsey Graham, R-S.C., blocked an effort by Democrats to force a vote on legislation that would require the Supreme Court to adopt a binding ethics code.
• The annual congressional baseball game was interrupted by climate protesters.
• Usher was on Capitol Hill.

Lobbying

Ahead of its meeting with Donald Trump, the Business Roundtable pledged to spend “eight figures” in the upcoming fight over renewing the 2017 Tax Cuts and Jobs Act. Joseph Zeballos-Roig has more details.

Outside the Beltway

• California’s Democratic Gov. Gavin Newsom is considering changing a state law that allows workers to sue big companies “after prodding from some of California’s largest business interests.” — Bloomberg
• Disney and Florida Gov. Ron DeSantis’ appointees to the governing district for Walt Disney World have buried the hatchet after the Central Florida Tourism Oversight District voted unanimously on Wednesday to approve a $17 billion development deal for the resort, two years after the company publicly opposed the state’s so-called “Don’t Say Gay” law.

Economy

• Treasury Secretary Janet Yellen will speak at the Economic Club of New York today.
• The International Energy Agency said Wednesday that global oil markets are headed to a major glut, driven by surging crude stocks and slowing demand growth as consumers and businesses switch to electric vehicles and renewable energy.

• Relatedly: US electric vehicle sales continued to grow during the first three months, according to BloombergNEF’s latest industry outlook — but not nearly so fast as in France, China, or India.

Courts

• Oklahoma’s Supreme Court dismissed a lawsuit from survivors of the Tulsa Race Massacre seeking reparations.
• Former SpaceX employees are suing Elon Musk, accusing him of retaliating over sexual harassment allegations.
• The largest oil trade group in the US, which includes Exxon Mobil and Chevron, is suing the Biden administration to block the government’s EV push.

Polls

Roughly half of American adults approve of Donald Trump’s recent conviction in Manhattan, according to a new AP-NORC poll, which also found opinions of Trump and President Biden virtually unchanged since the verdict was handed down.

On the Trail

• It’s that old 2016 feeling: Hillary Clinton endorsed George Latimer in his primary challenge against Rep. Jamaal Bowman, D-N.Y., who has the backing of Bernie Sanders.
• Democrats welcomed a Florida Atlantic University poll that found single digit leads for Donald Trump and Sen. Rick Scott, with both races tightening since April. The same poll under-estimated Republican support in 2020 and 2022, but Democrats have already reserved digital ad buys to help likely Senate nominee Debbie Mucarsel-Powell. They didn’t add to that buy on Wednesday.
• UAW members in Michigan don’t think the powerful union’s endorsement of President Biden will have much impact on their peers who back Trump. — CNN
• Trump posted another TikTok (with Logan Paul).
• Democrat Sarah McBride could be the first transgender member of the House after her primary opponent in deeply Democratic Delaware withdrew from the race.

National Security

• Illegal US border crossings have declined since President Biden signed his executive order last week, but officials are still releasing some migrants inside the US. — NBC
• Meanwhile, immigrant advocacy organizations sued the Biden administration over the executive order, calling it “legally indistinguishable from the Trump ban we successfully blocked.”

Foreign Policy

A forthcoming UN report says that children in Gaza represent nearly 40% of minors killed in global conflicts last year. — Bloomberg

Technology

Elon Musk said late Wednesday on X that Tesla shareholder resolutions over his $56 billion compensation package and the plan to move its legal quarters to Texas are currently passing by “wide margins.”

Media

Veteran political journalist Howard Fineman passed away after a battle with pancreatic cancer.

Blindspot

Stories that are being largely ignored by either left-leaning or right-leaning outlets, curated with help from our partners at Ground News.

What the Left isn’t reading: A group of Republicans including Sen. J.D. Vance introduced a bill that would ban diversity, equity, and inclusion programs within the federal government.

What the Right isn’t reading: Federal regulators authorized the Mountain Valley Pipeline, a project championed by Sen. Joe Manchin that faced opposition from environmentalists, to begin operating.

Principals Team

Editors: Benjy Sarlin, Jordan Weissmann, Morgan Chalfant

Editor-at-Large: Steve Clemons

Reporters: Kadia Goba, Joseph Zeballos-Roig, Shelby Talcott, David Weigel

Jeanne Shaheen is a Democratic senator from New Hampshire. Marty the Moose made his annual visit to the US Capitol this week.