Welcome to The Hill's Morning Report, and happy Thursday! Our daily email gets you up to speed on the most important developments in politics and policy, plus trends to watch, co-created by Jonathan Easley and Alexis Simendinger. (CLICK HERE to subscribe!)

Hill.TV’s “Rising” program, starting at 8 a.m., features interviews with guests Alice Marie Johnson, who was granted clemency by 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 in June after serving 20 years in prison; Connecticut Sen. Chris Murphy Christopher (Chris) Scott MurphyDemocratic senator calls for 'more flexible' medical supply chain to counter pandemics The Hill's 12:30 Report - Presented by Facebook - Don't expect a government check anytime soon GOP chairman to release interim report on Biden probe 'in about a week' MORE (D); and New Mexico Democrat Deb Haaland, who won her primary last month and could become the first Native American woman in Congress after November. http://thehill.com/hilltv



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This morning we bring readers the blowback, walk-back, retraction, confusion and drama from the fourth day of the Russia riptide that has engulfed the White House…

In an interview last night with CBS News’s Jeff Glor, President Trump offered his most unambiguous remarks to date about Russian interference in the 2016 election (CBS News).

After days of waffling and contradictions, Trump said he holds Russian President Vladimir Putin personally responsible for the election interference, which has produced dozens of indictments of senior Russian intelligence officials and satellite organizations.

“[Putin’s] in charge of the country. Just like I consider myself to be responsible for things that happen in this country. So certainly as the leader of a country you would have to hold him responsible.”

The president also said that he confronted Putin about the matter in their one-on-one meeting in Helsinki, although Trump notably declined to do so in the press conference that was broadcast around the world.

“I let him know we can't have this, we're not going to have it, and that's the way it's going to be."

The CBS interview took place after Trump spent three days digging new holes and creating headaches for himself and for his national security team. 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 will testify about the Russia summit in front of the Senate Intelligence Committee next week.

The mess: Early on Wednesday, Trump responded “no” when a reporter asked him if he believes Putin is preparing to interfere in the 2018 midterm elections, putting him at odds with his own 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, as well as FBI Director Christopher Wray (The Hill). Wray on Wednesday restated the FBI’s belief that Russia interfered with the election and “continues” the meddling in 2018.

The cleanup: White House press secretary Sarah Huckabee Sanders later said that Trump was responding “no” to a question about whether he would take questions from reporters. Reporters in the room dispute that explanation. Sanders went on to say that the administration believes Russia is preparing to interfere in the midterm elections and that the White House is taking the threat seriously.

The mess: Trump provoked outrage among Republicans on Capitol Hill for declining to confront Putin over election interference at a press conference in Helsinki on Monday. Trump also suggested that he believed Putin’s denial over the information provided to him by Coats.

The cleanup: Trump said that after reviewing the transcript of the press conference, he realized he misspoke. At the press conference with Putin, Trump said he didn’t think Russia “would” be involved in an election interference campaign. He later claimed that he meant to say that he “wouldn’t” have a reason to believe otherwise.

Sen. Susan Collins Susan Margaret CollinsClub for Growth to spend million in ads for Trump Supreme Court nominee Maryland's GOP governor says Republicans shouldn't rush SCOTUS vote before election The Hill's Morning Report - Sponsored by Facebook - GOP closes ranks to fill SCOTUS vacancy by November MORE (R-Maine) called the explanations “dizzying.”

The Hill: Trump’s damage control falters.

The New York Times: White House journos, including The Hill’s Jordan Fabian, try team approach.

The White House wants the news media to focus on the actions the administration has taken against Russia, and not on the president’s words.

The Hill: Trump’s policies, actions create divide on Russia.

The Trump administration has sanctioned Russian oligarchs and firms for interfering in the 2016 election and joined more than a dozen countries this year when the United States expelled 60 Russian officials as punishment for Russian poisonings in the United Kingdom.

The White House is accusing the media of hysteria around Russia and of ginning up a modern day Red Scare. Sanders pointed to errors from reporters who attempted to tie together threads she said do not exist.

“This has gotten totally out of control. You guys need to take a step back and slow down and quit going after the Trump administration on everything little thing that takes place.” – Sanders

But Trump’s main problem right now is that Republicans on Capitol Hill were wholly unnerved by the Helsinki summit and what they view as a capitulation by the U.S. president to Russia. The president’s remarks over the past few days and the subsequent corrections have only exacerbated those fears.

There has been a rush by Republicans to rebuke the president for casting doubt on the assessments provided by his own intelligence officials. Late on Wednesday, the New York Times reported that the president, two weeks after his inauguration, read highly classified U.S. intelligence establishing that Putin himself “personally ordered” the plan of cyber attacks and disinformation to interfere with the election and to support Trump’s bid for the White House.

GOP lawmakers are proposing new measures to sanction Russia or beef up election security ahead of 2018.

A bipartisan bill called the DETER Act, backed 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.), is picking up steam. Senate 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.) might skip the committee process and bring it straight to the floor for a vote.

The Hill: GOP seeks separation from Trump on Russia.

Reuters: Senate eyes swift sanctions in case of more election meddling.

There is one other loose end the president will need to address shortly.

The White House on Wednesday left open the possibility it would allow Russian investigators to come to the United States to question U.S. citizens, including Michael McFaul, the American ambassador to Russia under former President Obama, and Bill Browder, an investment fund manager who spearheaded an effort to pass the Magnitsky Act, which is reviled by Putin.

“I can’t answer on behalf of the White House ... but what I can tell you is that the overall assertions that have come out of the Russian government are absolutely absurd – the fact that they want to question 11 American citizens and the assertions that the Russian government is making about those American citizens. We do not stand by those assertions.” – State Department spokeswoman Heather Nauert.

McFaul and Browder, respectively, have strong support on Capitol Hill, and lawmakers would go into full revolt if Trump were to give the Kremlin access to either individual.

Browder: Why Putin hates me.







LEADING THE DAY





CONGRESS: Immigration issues crowd the political and policy battlefield with little more than 100 days left before the election...

> Senate – ICE: The Hill: A symbolic GOP Senate resolution supporting Immigration and Customs Enforcement (ICE) — and opposing progressives' political campaign to "abolish" the agency — was blocked by Democrats on Wednesday shortly after a similar measure was approved by the House. Democrats’ push to eliminate ICE, created in 2003, entered the national spotlight after the president's “zero tolerance” immigration policy resulted in the separation of immigrant families detained along the border.

> DHS – wall funding: The Hill: Heeding Trump’s wish to make progress on his favored physical wall at the southern border, House lawmakers on Wednesday set aside $5 billion in a Homeland Security appropriations bill for 2019. The House proposal, which significantly outstrips the Senate’s $1.6 billion version, would include 200 miles of new physical barriers and border technology. In a statement, the president’s spokeswoman called the $5 billion “critical.”

> Immigration – advocacy: This morning, Church World Services delivered letters to every member of Congress urging lawmakers to reject any administration expansion of migrant family incarcerations or separations. The 500 religious leaders and 111 faith-based organizations signing the appeal also support protections for asylum seekers and unaccompanied children.

House – leadership ambitions: The Hill: Two members of the conservative House Freedom Caucus are vying to ascend to leadership next year. They are Rep. Gary Palmer Gary James PalmerComer tapped to serve as top Republican on House Oversight Top GOP post on Oversight draws stiff competition Trump takes pulse of GOP on Alabama Senate race MORE (R-Ala.), and Rep. David Schweikert David SchweikertHouse Democratic campaign leader predicts bigger majority Democrat Hiral Tipirneni wins Ariz. primary to challenge Rep. David Schweikert Ethics watchdog finds 'substantial' evidence of improper spending by Rep. Sanford Bishop MORE (R-Ariz.), who is interested in leading the Republican Policy Committee, the No. 5 spot in leadership.

> Rep. Jim Jordan James (Jim) Daniel JordanHouse panel pulls Powell into partisan battles over pandemic Sunday shows preview: Justice Ginsburg dies, sparking partisan battle over vacancy before election House passes resolution condemning anti-Asian discrimination relating to coronavirus MORE (R-Ohio), a leading Freedom Caucus member who at one time coached wrestling at Ohio State University, was interviewed by a law firm investigating allegations that a now-dead team doctor sexually abused male athletes there decades ago, The Associated Press reported. Jordan spoke on Monday with investigators looking into allegations against Dr. Richard Strauss. Jordan has denied having knowledge at the time about sexual misconduct.

House – farm bill: The Hill: The House voted on Wednesday to go to conference with the Senate on the 2018 farm bill, a measure delayed this year by controversies tied to work requirements for food stamp provisions and unrelated skirmishes in Congress over immigration.

****

POLITICS & CAMPAIGNS: Obama on Wednesday again declined to directly address Trump during a speech at a summit in South Africa.

Instead, the former president took a swipe at liberal identity politics.

“Democracy demands that we’re also able to get inside the reality of people who are different than us so we can understand their points of view. Maybe we can change their minds, but maybe they’ll change ours. And you can’t do this if you just out of hand disregard what your opponents have to say from the start. And you can’t do it if you insist that those who aren’t like you — because they’re white or because they’re male — that somehow they can’t understand what I’m feeling, that somehow they lack standing to speak on certain matters."

This was a welcome development on the right, although conservatives were eager to remind readers that they believe Obama laid the groundwork for the current political environment.

Noah Rothman: Obama practiced the identity politics he now condemns.

Elsewhere, Michelle Obama Michelle LeVaughn Robinson ObamaBlack stars reimagine 'Friends' to get out the vote Obama shares phone number to find out how Americans are planning to vote Michelle Obama: 'Don't listen to people who will say that somehow voting is rigged' MORE is wading into the midterms, according to Politico, launching a voter registration initiative that is being billed as nonpartisan.

Meanwhile, former FBI Director James Comey James Brien ComeyDemocrats fear Russia interference could spoil bid to retake Senate Book: FBI sex crimes investigator helped trigger October 2016 public probe of Clinton emails Trump jabs at FBI director over testimony on Russia, antifa MORE is having a tough time finding a political home. After clashing with Trump during his high-profile book tour earlier this year, Comey is urging voters to elect Democrats.

The problem for Comey is that Democrats harbor bitter feelings about him after his handling of the investigation into 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’s email server. Many Clinton supporters believe Comey’s actions ultimately cost the former secretary of State the Electoral College result she needed, although she won the popular vote.

More from the campaign trail … Trump has waded into the Georgia governor’s race, backing Secretary of State Brian Kemp (R) over Republican Lt. Gov. Casey Cagle (The Associated Press) … House Democrats have a new campaign slogan (Politico) … Trump’s Russia remarks have created new problems for Republicans up for reelection in 2018 (The Hill) … House Republicans are facing new attacks from Democrats, who are making rising ObamaCare premiums an election issue (The Hill) … five Democratic senators, including two up for reelection in states Trump won in 2016, will announce a proposal today defending the constitutionality of protections for pre-existing conditions under ObamaCare.





IN FOCUS/SHARP TAKES





➔ INVESTIGATIONS: Some interesting developments in the case against Maria Butina, the 29-year-old American University graduate who is accused of acting as a covert operative for the Kremlin at least since 2014, as described in a detailed indictment from the Department of Justice…

A judge has ordered that Butina stay in jail as she awaits trial after prosecutors argued that she’s a flight risk (Reuters).

The Associated Press details how Butina, a guns rights activist who became a fixture at conservative events around Washington, D.C., is alleged to have used “sex and deception to forge influential connections” here and then report back to Moscow.

Butina is charged with conspiracy and acting as an unregistered foreign agent. She was arrested on Sunday amid growing fears from law enforcement that she was preparing to flee the country.

The Washington Post: Alleged Russian operative denied bail.

ThinkProgress: Photos of Butina meeting with Republicans and conservative leaders.

➔ ADMINISTRATION: Updates from around the agencies and departments…

U.S. Census - director: Trump on Wednesday nominated Steven Dillingham to be the director of the U.S. Census Bureau at the Department of Commerce for the remainder of a five-year term expiring in 2021, which would take him beyond the controversial 2020 census, if confirmed by the Senate. Dillingham currently works at the Peace Corps; the director post has been vacant for more than a year.

Veterans Affairs Department – staff shuffle: Ahead of Robert Wilkie’s likely confirmation to lead the VA, staff perceived to be disloyal to Trump are being reassigned or purged from the department, The Washington Post reports. The transfers include more than a dozen career civil servants who have been moved from the leadership suite at headquarters and reassigned to lower-visibility roles.

Commerce Department – uranium: The Hill: The department has launched an investigation into the impact of uranium imports on national security, a move that could result in tariffs and add another front to the Trump administration's trade fight.

HHS – migrants: The Health and Human Services Department has unilaterally reprogrammed otherwise designated funding sources to respond to the family-separation crisis at the border triggered by Trump’s “zero tolerance” policy, now halted (Politico). UPDATE 10:15 a.m.: HHS is disputing this report, saying it has not transferred funds for the child resettlement program for 2018 yet and hasn't sent a transfer notification to Congress. The administration says it is still discussing its funding options. The Morning Report will keep you posted on this as it develop...

Pentagon – transgender ban: The Hill: The Trump administration failed on Wednesday in its efforts to persuade the courts to uphold its ban on transgender individuals in the military. The U.S. Court of Appeals for the 9th Circuit upheld a lower court’s ruling to block implementation of the Pentagon ban announced last year.

Interior Department – investigation: Politico reports that the department’s inspector general decided to open an investigation into a real estate deal involving a foundation established by Secretary Ryan Zinke Ryan Keith ZinkeTrump extends Florida offshore drilling pause, expands it to Georgia, South Carolina Conspicuous by their absence from the Republican Convention Trump flails as audience dwindles and ratings plummet MORE and developers, including Halliburton Chairman David Lesar, which was first reported by the news outlet last month.





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!





OPINION





Markets have taken trade conflicts in stride – for now, by economic expert Philip I. Levy, opinion contributor for The Hill. https://bit.ly/2LanWkU

The Trump effect on the GOP, by Democratic pollster Brad Bannon, opinion contributor for The Hill. https://bit.ly/2zMWpjY





WHERE AND WHEN





The House meets at 9 a.m. and last votes are expected no later than 3 p.m.

The Senate convenes at 10 a.m. and resumes consideration of Ryan W. Bounds to be United States Circuit Judge of the 9th Circuit. The Senate Finance Committee holds a confirmation hearing for Charles Rettig to be IRS commissioner.

The president meets with Defense Secretary James Mattis James Norman MattisBiden courts veterans amid fallout from Trump military controversies Trump says he wanted to take out Syria's Assad but Mattis opposed it Gary Cohn: 'I haven't made up my mind' on vote for president in November MORE and has lunch with Pompeo. Later, Trump speaks in the East Room about vocational training for U.S. workers.

Vice President Pence travels to St. Louis, Mo., to campaign for GOP Senate candidate Josh Hawley today, and later appears nearby in O’Fallon, Ill., to stump for Illinois Republican Rep. Mike Bost Michael (Mike) J. BostMORE. The vice president will attend a separate, official event in Missouri about tax cuts.

Among those speaking today at the Aspen Security Forum in Aspen, Colo.: Director of National Intelligence Coats (this afternoon, interviewed by NBC News’s Andrea Mitchell); 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 (this evening); and Department of Homeland Security Secretary Kirstjen Nielsen Kirstjen Michele NielsenMore than million in DHS contracts awarded to firm of acting secretary's wife: report DHS IG won't investigate after watchdog said Wolf, Cuccinelli appointments violated law Appeals court sides with Trump over drawdown of immigrant protections MORE (this morning interviewed by NBC’s Peter Alexander). Event is live streamed by the Aspen Institute and at NBCNews.com.





ELSEWHERE





> European Union hammers Google with record $5 billion antitrust fine for allegedly using Android operating system to thwart online competition (The Hill).

> Texas is projected to pass Iraq and Iran as world's third largest oil powerhouse (CNN Money).

> U.S. expecting war dead remains from North Korea within two weeks (The Washington Post).

> Fed Chairman Powell testified about the central bank’s aim to raise interest rates gradually and his worries about tariffs (The Wall Street Journal).

THE CLOSER





And finally … The Morning Report’s QUIZ CONTEST is back this week. Send your best guesses for all six questions to jeasley@thehill.com or asimendinger@thehill.com to achieve newsletter fame in Friday’s report. (Please put “Quiz” in your subject line.)

The White House announced Wednesday it has awarded a $3.9 billion contract to The Boeing Company for two new Air Force One planes by 2024. Let’s test your Air Force One knowledge…

Who was the first president to ever fly on an airplane? Who was the first president to fly on a specialty aircraft designed specifically for the president? What was the nickname of the plane that was the precursor to Air Force One? What is the name of the actor who played the terrorist who hijacked the president’s plane in the 1997 thriller “Air Force One?” Hint: He won an Oscar for his portrayal of Winston Churchill in 2017. How old are the current Air Force One planes? Hint here. Which of these is not on Air Force One? A gym. An escape pod. Fax machines. An emergency medical operating room.





