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Today is President Trump Donald John TrumpBiden on Trump's refusal to commit to peaceful transfer of power: 'What country are we in?' Romney: 'Unthinkable and unacceptable' to not commit to peaceful transition of power Two Louisville police officers shot amid Breonna Taylor grand jury protests MORE’s 18-month mark in office.

President Trump has announced a second summit with Vladimir Putin even as the fallout from his Monday meeting with the Russian president continues.

The White House announced Thursday that Putin will be invited to visit Washington, D.C., this fall, presumably before the November midterm elections. Republicans in Washington hoped by autumn to shift away from controversies and stick to selling a strong economy and their tax-cuts bill.

Senate Republicans are trying to convince the president that a second meeting is a bad idea, Alexander Bolton reports (The Hill). Russia is open to accepting the invitation but Ambassador Anatoly Antonov said it’s important to “deal with the result” of the first summit before jumping to a new one (The Associated Press).

Director of National Intelligence Dan Coats Daniel (Dan) Ray CoatsFBI chief says Russia is trying to interfere in election to undermine Biden The Hill's Morning Report - Sponsored by The Air Line Pilots Association - Trump, Biden renew push for Latino support Former Intel chief had 'deep suspicions' that Putin 'had something on Trump': book MORE, who broke with the president earlier this week after Trump suggested he believed Putin over his own intelligence officials, found out about the proposed second summit from the media. In fact, he was being interviewed by NBC’s Andrea Mitchell at a newsmaker event in Aspen. Coats broke into uncomfortable laughter.

“Did I hear you right? Ok. That’s gonna be special.” – Coats

Trump’s Helsinki summit is still dominating on Capitol Hill, as lawmakers on Thursday announced new hearings, passed a resolution rebuking the president and proposed tough new sanctions on Russia.

A brief recap of the floor action…

> The White House had left open the possibility that if special counsel Robert Mueller were allowed to travel to Moscow to interview the Russian intelligence agents he has indicted for election interference, Trump would in turn allow Russian investigators to come to the United States to question at least two of Putin’s foes.

Putin wants to interrogate Michael McFaul, the American ambassador to Russia under former President Obama, and William Browder, an investment fund manager who led an effort to pass the Magnitsky Act in 2012, which froze Russian assets and applied economic sanctions. Putin wants the U.S. to revoke the law, which is named after Browder’s lawyer, who died under mysterious circumstances in a Russian prison.

Lawmakers were chagrined that the Trump administration was considering allowing Russia to question a former U.S. diplomat and a renowned Putin critic. The White House backed away from the idea on Thursday, but the Senate proceeded to approve a resolution warning Trump against it anyway. The vote was 98-0.

Sen. John Cornyn John CornynThe Hill's Campaign Report: GOP set to ask SCOTUS to limit mail-in voting Liberal super PAC launches ads targeting vulnerable GOP senators over SCOTUS fight Senate GOP faces pivotal moment on pick for Supreme Court MORE (R-Texas) described the offer as “terrible.” Sen. Lindsey Graham Lindsey Olin GrahamSenate GOP aims to confirm Trump court pick by Oct. 29: report The Hill's Campaign Report: GOP set to ask SCOTUS to limit mail-in voting Senate GOP sees early Supreme Court vote as political booster shot MORE (R-S.C.) called it “absurd and naive.” Sen. Bob Corker Robert (Bob) Phillips CorkerHas Congress captured Russia policy? Tennessee primary battle turns nasty for Republicans Cheney clashes with Trump MORE (R-Tenn.) said he has “no idea how that’s even come into consciousness.”

> Secretary of State Mike Pompeo Michael (Mike) Richard PompeoTreasury sanctions individuals, groups tied to Russian malign influence activities Navalny released from hospital after suspected poisoning Overnight Defense: Pentagon redirects pandemic funding to defense contractors | US planning for full Afghanistan withdrawal by May | Anti-Trump GOP group puts ads in military papers MORE is expected to testify next week about what Trump and Putin discussed at the Helsinki summit. But Majority Leader Mitch McConnell Addison (Mitch) Mitchell McConnellFEC flags McConnell campaign over suspected accounting errors Poll: 59 percent think president elected in November should name next Supreme Court justice Mark Kelly: Arizona Senate race winner should be sworn in 'promptly' MORE (R-Ky.) has added hearings to the Senate’s schedule. He has asked Corker, chairman of the Foreign Relations Committee, and Banking Committee Chairman Mike Crapo Michael (Mike) Dean CrapoBottom line Davis: The Hall of Shame for GOP senators who remain silent on Donald Trump Top GOP senator urges agencies to protect renters, banks amid coronavirus aid negotiations MORE (R-Idaho) to arrange new panel hearings to discuss steps to advance legislation as part of a “national response" to Russian interference in the 2016 election.

We’ve been telling you the past two days about the proposed bipartisan DETER Act, which would sanction Russia for future election interference and is spearheaded by Sens. Marco Rubio Marco Antonio RubioOvernight Defense: Pentagon redirects pandemic funding to defense contractors | US planning for full Afghanistan withdrawal by May | Anti-Trump GOP group puts ads in military papers Democrats step up hardball tactics as Supreme Court fight heats up Press: Notorious RBG vs Notorious GOP MORE (R-Fla.) and Chris Van Hollen Christopher (Chris) Van HollenCongress must finish work on popular conservation bill before time runs out Democrats fear Russia interference could spoil bid to retake Senate Mid-Atlantic states sue EPA over Chesapeake Bay pollution MORE (D-Md.). That bill picked up eight co-sponsors from both parties on Thursday. (Intelligence officials have warned lawmakers that Russia is currently interfering with the U.S. election process and trying to influence voters with disinformation.)

But not everything Congress attempted on the Russia front yesterday was a success...

> Cornyn blocked a resolution, supported by Sen. Jeff Flake Jeffrey (Jeff) Lane FlakeHow fast population growth made Arizona a swing state Jeff Flake: Republicans 'should hold the same position' on SCOTUS vacancy as 2016 Republican former Michigan governor says he's voting for Biden MORE (R-Ariz.), a Trump critic, that would have affirmed the intelligence community’s finding that Russia interfered in the 2016 election. Cornyn called it a “purely symbolic vote” and said the Senate has more pressing matters at hand.

> Sen. Rand Paul Randal (Rand) Howard PaulRand Paul says he can't judge 'guilt or innocence' in Breonna Taylor case Overnight Health Care: Health officials tell public to trust in science | Despair at CDC under Trump influence | A new vaccine phase 3 trial starts Health officials tell public to trust in science MORE (R-Ky.), who has been one of the few Republicans to defend Trump’s handling of the Helsinki summit, blocked a similar resolution put forth by Sen. Bernie Sanders Bernie SandersOutrage erupts over Breonna Taylor grand jury ruling Dimon: Wealth tax 'almost impossible to do' Grand jury charges no officers in Breonna Taylor death MORE (I-Vt.), labeling it “crazy hatred” for the president.

The Hill: Dems unveil a slate of measures to ratchet up pressure on Russia.

> House Republicans voted down a measure that would have subpoenaed the U.S. interpreter who translated for Trump during his more than two-hour, one-on-one discussion with Putin. Some Republicans say interviewing an interpreter who served the State Department and the White House in a diplomatic capacity falls under the purview of intelligence officials, not Congress.

The Hill: Obama, Bush veterans dismiss Trump-Putin interpreter subpoena.

Meanwhile, Trump is lashing out at critics and pointing the finger back at Obama, who was famously caught on a hot mic during an election year telling former Russian President Dmitry Medvedev that he’d have “more flexibility” on issues like missile defense after the campaign.

"Obama was a patsy for Russia. He was a total patsy." – Trump in an interview with CNBC.

The president also tweeted a link to a 2010 interview former Secretary of State Hillary Clinton Hillary Diane Rodham ClintonDemocratic groups using Bloomberg money to launch M in Spanish language ads in Florida The Hill's Campaign Report: Presidential polls tighten weeks out from Election Day More than 50 Latino faith leaders endorse Biden MORE gave to a Russia-backed television channel in which she said a “strong Russia” is in the world’s best interests.

Fascinating roundup...

> The Hill: Trump demoralizes his own team with dizzying Russia moves.

> The Washington Post: As Russians describe “verbal agreements” in Helsinki, U.S. officials scramble for clarity.

> Rep. Will Hurd (R-Texas), a former CIA officer, writing in The New York Times: Trump is being manipulated by Putin. What should we do?

> Newt Gingrich, writing for Fox News: The truth about Trump, Putin and Obama.

> CBS News poll: 68 percent of Republicans approve of Trump’s handling of Putin.

> Reuters: Putin blames U.S. for trying to ruin Trump summit outcome.

> Bloomberg: Putin tells diplomats he made Trump a new offer on Ukraine, a referendum on separatist regions.

> The Hill: Deputy Attorney General Rod Rosenstein Rod RosensteinDOJ kept investigators from completing probe of Trump ties to Russia: report Five takeaways from final Senate Intel Russia report FBI officials hid copies of Russia probe documents fearing Trump interference: book MORE warns of growing threat from foreign influence operations.

> Reuters: Russia shows off Putin’s ‘super weapons.’





LEADING THE DAY





CONGRESS: Plenty of politics and some budget substance as the week for lawmakers comes to a close...

Senate – judicial confirmations: The Hill: Senate Republicans broke a record this week for the number of appeals court judges confirmed during a president's first two years, but the White House on Thursday also made the rare decision to pull a judicial nominee from the Senate floor minutes before a roll call vote, signaling the nominee was coming up short in a whip count. On Wednesday, senators voted to confirm Trump's 23rd circuit court judge since he took office last year, breaking the previous record set by former President George H.W. Bush, who saw 22 appeals court judges confirmed during his administration's first two years.

Senate – IRS: The Hill: The Senate Finance Committee approved Charles Rettig’s nomination to be IRS commissioner on a party-line vote of 14-13 on Thursday.

House – ICE: The Hill: House leaders from both parties clashed Thursday over a resolution promoted by House Republicans to try to put Democrats on record as opposed to U.S. Immigration and Customs Enforcement (ICE). House conservatives sought a vote on a resolution supporting ICE, and 133 Democrats voted “present.” Republicans are trying to brand the Democratic Party -- including liberals who have called for the abolishment of ICE based on its enforcement techniques -- as a “socialist” movement.

House – spending bills: The Hill: The House on Thursday passed a package of appropriations bills totaling $58.7 billion for the fiscal year that begins Oct. 1, marking the halfway point in a quest to approve the 12 annual spending bills needed to fund the government. Reaching the halfway point in July is considered unusual based on recent budget history.

House – carbon tax: The Hill: The House passed a nonbinding measure Thursday to oppose the idea of a carbon tax, calling it “detrimental” to the United States. The odds of lawmakers actually adopting such a new tax are miniscule, considering widespread GOP opposition and Republican control of both chambers of Congress and the White House. Republicans nonetheless felt it was important to make a political statement to stave off any appearance that taxing carbon dioxide emissions was likely. It’s a proposal favored by some Democrats to counter greenhouse gas emissions linked to climate change.

Senate – CFPB confirmation: The Hill: Trump’s nominee to lead the Consumer Financial Protection Bureau on Thursday refused to discuss with senators her involvement in the administration’s family-separation policy at the southern border. Kathleen Kraninger said during a confirmation hearing that she played “no role in setting” the administration’s “zero tolerance” immigration policy, but Democratic senators want to know if she helped influence the implementation of the Trump policy they assail.

****

POLITICS & CAMPAIGNS:

> Sen. Bob Menendez Robert (Bob) MenendezKasie Hunt to host lead-in show for MSNBC's 'Morning Joe' Senators ask for removal of tariffs on EU food, wine, spirits: report VOA visa decision could hobble Venezuela coverage MORE (D-N.J.), who saw federal prosecutors drop charges of corruption against him earlier this year, is facing a big-money challenger as he seeks reelection in 2018 (The Hill). While Menendez is still the favorite to win reelection in deep-blue New Jersey, a recent poll found Republican challenger Bob Hugin down by only 2 points.

> We know who Trump wants to face in 2020. The president is describing former Vice President Joe Biden Joe BidenBiden on Trump's refusal to commit to peaceful transfer of power: 'What country are we in?' Democratic groups using Bloomberg money to launch M in Spanish language ads in Florida Harris faces pivotal moment with Supreme Court battle MORE as his “dream” opponent. Biden will headline a fundraiser for Rep. Kyrsten Sinema (D-Ariz.) this weekend, who is running for Senate to replace retiring Flake (AZ Central).

> The OZY fest takes place on Saturday and Sunday in New York City, featuring Hillary Clinton, Sen. Kirsten Gillibrand Kirsten GillibrandSunday shows preview: Justice Ginsburg dies, sparking partisan battle over vacancy before election Suburban moms are going to decide the 2020 election Jon Stewart urges Congress to help veterans exposed to burn pits MORE (D-N.Y.), Salman Rushdie, Cynthia Nixon, Karl Rove, Chelsea Handler, Grover Norquist, Steven Pinker and musical acts from Passion Pit to Common, plus many others. Catch the two-day arts festival in Central Park.

IN FOCUS/SHARP TAKES





➔ WHITE HOUSE & ADMINISTRATION:

Trump – interest rates: The Hill: In a clear break with presidential custom and financial market expectations, Trump criticized the Federal Reserve on Thursday for raising interest rates. The president accused Chairman Jerome Powell, his appointee, of hindering the U.S. economy with the central bank’s monetary policy. Trump told CNBC in an interview that he’s “not thrilled” with Powell because higher interest rates could constrict economic growth. In response to an expanding economy, robust employment and traditional concerns about inflation, the Fed is widely expected to raise rates again in September.

Drug prices: The White House this week said consumers will be the winners as two large drug companies announced they’ll hold off on hiking prices for the remainder of 2018. Analysts said temporary pauses in drug price hikes will have little impact on consumers and are public relations ploys, according to The New York Times. Nonetheless, Trump led the cheers:

West Wing turnstile: The Hill: The public and congressional furor over Trump’s interactions with Putin on Monday reawakened speculation that White House chief of staff John Kelly John Francis KellyMORE may be a short-timer in that role. Will the disastrous Helsinki summit and its aftermath speed up Kelly’s departure (or the president’s eagerness for another new top adviser)? The retired Marine general is Trump’s second chief, and at the end of July, Kelly will have held the traditionally challenging job for a year.

Endangered species: The Hill: The Interior Department says it wants to change the way the government enforces the Endangered Species Act to protect habitats, but wildlife groups argue the results will place endangered animals and plants at risk.

FCC – Sinclair merger: The Hill: The Federal Communications Commission (FCC) accused Sinclair Broadcast Group of trying to deceive regulators as the media giant sought approval of a $3.9 billion merger with Tribune Media. The commission on Thursday questioned the company’s plan to sell off a number of local television stations as a way to bring the merger in compliance with media ownership regulations.

Trade policy – public opinion: More polled Americans disapprove of Trump’s new tariffs applied to U.S. trading partners than approve, according to a Pew Research survey released on Thursday. But the results also show a pronounced partisan divide. While 73 percent of Republicans and Republican-leaning independents say the increased tariffs are a good thing for the country, 77 percent of Democrats say the tariffs are a bad thing for the nation, CBS News reported. Because many lawmakers face opposition to the tariffs among their constituents as November elections approach, the survey will be scrutinized on Capitol Hill.







OPINION





The American government will keep on fighting to state the truth on Russia, by Michael Hayden, former director of the CIA and of the National Security Agency, The Hill. https://bit.ly/2zPTcQG

There was nothing remotely treasonous in Trump’s performance with Putin, by Ned Ryun, former writer for President George W. Bush, The Hill. https://bit.ly/2JDwqv2

The Morning Report is created by journalists Jonathan Easley jeasley@thehill.com & Alexis Simendinger asimendinger@thehill.com. Suggestions? Tips? We want to hear from you! Share The Hill’s reporting and newsletters, and encourage others to SUBSCRIBE!







WHERE AND WHEN





The House is out until noon on July 23.

The Senate returns Monday at 3 p.m. and resumes consideration of the nomination of Robert L. Wilkie to be secretary of the Veterans Affairs Department.

The president and Melania Trump Melania TrumpTrump privately blamed Black Americans for lacking initiative: report The Hill's 12:30 Report: Ginsburg lies in repose Melania Trump: Ginsburg's 'spirit will live on in all she has inspired' MORE depart the White House this afternoon to spend the weekend in Bedminster, N.J.

Secretary of State Mike Pompeo will be in New York City today to meet with Ambassador Nikki Haley Nimrata (Nikki) Haley'The soul' versus 'law and order' Author Ryan Girdusky: RNC worked best when highlighting 'regular people' as opposed to 'standard Republicans' GOP lobbyists pleasantly surprised by Republican convention MORE and members of the United Nations Security Council, as well as Republic of Korea Foreign Minister Kang Kyung-wha and the Japanese Ambassador to the United Nations Koro Bessho, to discuss North Korea. Pompeo will also meet with U.N. Secretary-General António Guterres.

The Washington Post hosts a newsmaker discussion at 9:30 a.m. about cyber threats and how the government works with industry to thwart attacks, moderated by reporter Ellen Nakashima, with Tonya Ugoretz, director of the cyber threat intelligence integration center, and Dr. Jason Matheny, director of intelligence advanced research projects, both from the Office of the Director of National Intelligence. Location: 1301 K Street N.W., Washington.







ELSEWHERE





> Comcast pulls out of merger bid for Fox News assets, conceding to Disney, by Liana B. Baker and Carl O’Donnell (Reuters).

> The special counsel’s office released a list of more than 500 items the special counsel is treating as evidence against former Trump campaign chairman Paul Manafort Paul John ManafortOur Constitution is under attack by Attorney General William Barr Bannon trial date set in alleged border wall scam Conspicuous by their absence from the Republican Convention MORE, by Darren Samuelsohn (Politico). You can read the list of evidence HERE.

> Dr. John Whyte, an internist and director of professional affairs and stakeholder engagement at the Food and Drug Administration, will leave the FDA at the end of August to become the chief medical officer for WebMD.

> The father of two survivors of the Parkland school shootings in Florida was shot and killed during an armed robbery in his own convenience store. Ayub Ali was 61. (NBC 6).





THE CLOSER





And finally … The Morning Report’s QUIZ CONTEST winners! Lots of readers know a thing or two about Air Force One, and those who submitted six correct answers to Thursday’s trivia challenge are: Shin Inouye, Milt Mungo, Dara Umberger, Lorraine Lindberg, Tom Ledoux, Nancy Stenberg, Norm Roberts, Alan Borack; Sandy Sycafoose; Catherine Houston and Patrick Alford.

The answers: