Welcome to The Hill’s Morning Report, and happy Thursday! Our newsletter 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! ) On Twitter, you can find us at @joneasley and @asimendinger.

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It’s Groundhog Day in Washington, where President Trump Donald John TrumpHR McMaster says president's policy to withdraw troops from Afghanistan is 'unwise' Cast of 'Parks and Rec' reunite for virtual town hall to address Wisconsin voters Biden says Trump should step down over coronavirus response MORE and Democratic leaders are cycling through the same daily drama while the partial government shutdown reaches 20 days.

If there is no agreement after 21 days, the president and Congress will achieve a new record: The longest shutdown in U.S. history.

This afternoon, the president heads to McAllen, Texas, for discussions at the southern border as part of his campaign to persuade Democrats in Congress that there is a “humanitarian and national security crisis” that can only be solved by constructing a border wall. He’s traveling today with Texas GOP Sens. John Cornyn John CornynAirline job cuts loom in battleground states Senate Republicans signal openness to working with Biden Hillicon Valley: DOJ indicts Chinese, Malaysian hackers accused of targeting over 100 organizations | GOP senators raise concerns over Oracle-TikTok deal | QAnon awareness jumps in new poll MORE and Ted Cruz Rafael (Ted) Edward CruzLoeffler calls for hearing in wake of Netflix's 'Cuties' Health care in the crosshairs with new Trump Supreme Court list 'Parks and Rec' cast members hosting special reunion to raise money for Wisconsin Democrats MORE.

House Speaker Nancy Pelosi Nancy PelosiMcConnell focuses on confirming judicial nominees with COVID-19 talks stalled Overnight Defense: Top admiral says 'no condition' where US should conduct nuclear test 'at this time' | Intelligence chief says Congress will get some in-person election security briefings Pelosi must go — the House is in dire need of new leadership MORE (D-Calif.) has no intention of bringing a spending bill with additional wall money to the floor for a vote.

A quick resolution appears unlikely. On Wednesday, negotiations at the White House imploded spectacularly, with both sides sniping at one another as they left the Situation Room.

The Hill : Trump storms out of meeting as shutdown careens toward fourth week.

Senate Minority Leader Charles Schumer Chuck SchumerMcConnell accuses Democrats of sowing division by 'downplaying progress' on election security Warren, Schumer introduce plan for next president to cancel ,000 in student debt Schumer lashes out at Trump over 'blue states' remark: 'What a disgrace' MORE (D-N.Y.) accused Trump of having another “temper tantrum” and Pelosi called him a “petulant president.” The Speaker also took a shot at Trump’s inherited wealth, saying he doesn’t understand the plight of federal workers who will be forced to go without paychecks.

“He thinks maybe they could just ask their father for more money.” – Pelosi

The House on Wednesday voted to reopen the Treasury Department, IRS and Small Business Administration, and several other federal agencies. Eight Republicans voted with Democrats to pass the legislation, which is the first of several small spending bills Pelosi plans to bring up this week.

In an interview with Laura Ingraham on Fox News last night, House Minority Whip Steve Scalise Stephen (Steve) Joseph ScaliseHouse GOP slated to unveil agenda ahead of election House panel details 'serious' concerns around Florida, Georgia, Texas, Wisconsin elections Scalise hit with ethics complaint over doctored Barkan video MORE (R-La.) cited speculation in the media that there could be up to 25 defections. Scalise pointed out he counts votes for the House GOP and anticipated a dozen defections at most.

“We were never close [to 25].” – Scalise

Regardless, the White House announced preemptively that Trump would veto the piecemeal spending legislation without wall money. And Senate Majority Leader Mitch McConnell Addison (Mitch) Mitchell McConnellMcConnell focuses on confirming judicial nominees with COVID-19 talks stalled McConnell accuses Democrats of sowing division by 'downplaying progress' on election security Warren, Schumer introduce plan for next president to cancel ,000 in student debt MORE (R-Ky.) has no intention of bringing it up for a vote, even as some in his caucus challenged the president over his shutdown strategy at a closed-door meeting.

The Hill : GOP senators challenge Trump on shutdown strategy.

The Washington Post: In Texas, nearly every state and federal official who represents a district along the border is opposed to the president’s plan.

“We’re sticking with the president on this.” – McConnell

“I'm worried about what the end game is. This cannot be allowed to go on forever.” — Sen. Susan Collins Susan Margaret CollinsThe Hill's Campaign Report: Biden asks if public can trust vaccine from Trump ahead of Election Day | Oklahoma health officials raised red flags before Trump rally Gideon leads Collins by 12 points in Maine Senate race: poll Senate leaders quash talk of rank-and-file COVID-19 deal MORE (R-Maine), interviewed on NBC News

The Hill : GOP emphasizes unity ahead of shutdown votes.

The Hill : Jared Kushner Jared Corey KushnerAbraham Accords: New hope for peace in Middle East Tenants in Kushner building file lawsuit alleging dangerous living conditions Trump hosts Israel, UAE, Bahrain for historic signing MORE meets with moderate Republicans in search shutdown solution.

Which way from here?

Trump is threatening to declare a national emergency, which would ostensibly give the president power to redirect money from the military to spend on a border wall.

The president would be immediately challenged in court if he did that, and Republicans in both chambers have expressed unease with that option.

The Hill : Emergency declaration option for wall tests GOP.

Shutdown Fallout: #shutdownstories on Twitter has been trending among some federal workers impacted by Washington’s standoff. The anecdotes describe frustrations with Trump as well as lawmakers.

The New York Times : Washington’s strong economy, financed by taxpayers, takes a hit during shutdown.

The Hill : Worries mount as cybersecurity agency struggles through shutdown.

The Washington Post : Food and Drug Administration cuts back on food inspections.

The Hill: Shutdown chaos complicates tax season.

The Washington Post : Coast Guard told to navigate funding lapse with garage sales, second jobs.



LEADING THE DAY





POLITICS: One Democrat is out, while another appears to be gaining steam.

Billionaire philanthropist Tom Steyer, who has spent millions on a campaign to impeach Trump, announced in Iowa on Wednesday that he will not seek the Democratic nomination for president.

Steyer had been laying the groundwork for a presidential run, but instead will continue to direct his time and money to pressuring Congress to impeach the president ( The New York Times ).

It’s possible that after analyzing the field, Steyer discovered that it would be tough for him to break through the crowded room of candidates, which is likely to include buzzier names, such as former Rep. Beto O’Rourke (D-Texas).

Lisa Hagen reports on the growing “Draft Beto” effort that could leave the Texan with a healthy email and donor list if he decides to run ( The Hill ).

Democrats taking on Trump in 2020 will face a major challenge in trying to compete for airtime and headlines with a president who dominates the news, Amie Parnes reports ( The Hill ).

Turning to the House, Rep. Steve King Steven (Steve) Arnold KingGOP leader: 'There is no place for QAnon in the Republican Party' Loomer win creates bigger problem for House GOP Win by QAnon believer creates new headaches for House GOP MORE (R-Iowa), who has repeatedly stumbled into controversy for his remarks on race, has drawn a Republican primary challenger in Iowa.



IN FOCUS/SHARP TAKES





ADMINISTRATION: At the Justice Department, attorney general nominee William Barr is preparing for Senate confirmation hearings next week and visited Judiciary Committee Chairman Lindsey Graham Lindsey Olin GrahamThe Hill's Campaign Report: Arizona shifts towards Biden | Biden prepares for drive-in town hall | New Biden ad targets Latino voters Senate Democrats' campaign arm announces seven-figure investment to boost Graham challenger Graham: Comey to testify about FBI's Russia probe, Mueller declined invitation MORE (R-S.C.) on Wednesday.

Graham said Barr, who held the job under former President George H.W. Bush, assured him that if confirmed he would let special counsel Robert Mueller Robert (Bob) MuellerCNN's Toobin warns McCabe is in 'perilous condition' with emboldened Trump CNN anchor rips Trump over Stone while evoking Clinton-Lynch tarmac meeting The Hill's 12:30 Report: New Hampshire fallout MORE complete the investigation into Russia’s interference in the 2016 presidential election ( CNBC ).

Committee member Sen. Amy Klobuchar Amy KlobucharEPA delivers win for ethanol industry angered by waivers to refiners It's time for newspapers to stop endorsing presidential candidates Biden marks anniversary of the Violence Against Women Act, knocks Trump and McConnell MORE (D-Minn.) tweeted she wants to meet with the nominee before his hearings next week, but was given a “shutdown” turn-down.

Justice: Acting Attorney General Matthew Whitaker had been invited by House Judiciary Committee Democrats to testify this month about the Russia probe and other issues. Whitaker, citing the continuing shutdown, now seeks to delay testimony until

February ( The Hill ).

Treasury: House Democrats as well as lawmakers across the aisle want to question Treasury Secretary Steven Mnuchin Steven Terner MnuchinMcConnell focuses on confirming judicial nominees with COVID-19 talks stalled Hillicon Valley: FBI chief says Russia is trying to interfere in election to undermine Biden | Treasury Dept. sanctions Iranian government-backed hackers On the Money: Pelosi draws line at .2T | Jobless claims dip | Swing-state jobless numbers an issue for Trump MORE during a closed, classified briefing scheduled today about the administration’s decision, announced in December, to lift U.S. sanctions on companies owned by Russian oligarch Oleg Deripaska ( The New York Times ).

U.S.-China talks: Three days of trade negotiations concluded in Beijing as hopes grew for a deal by a March 2 deadline. China said the talks helped establish a foundation to resolve differences, without offering details ( Reuters ). U.S. negotiators are focused on China’s pledge to buy more U.S. goods ( Reuters ). …Financial markets soared on optimism that an end to tit-for-tat tariffs between the two countries may be achieved ( The Associated Press ). But next steps for China and the administration are unclear ( The Associated Press ).

Russia: Experts believe the arrest in Russia of U.S. citizen Paul Whelan, accused of espionage, is meant to retaliate for the U.S. arrest of Russian Maria Butina, who has pleaded guilty to being a foreign agent ( The Hill ). Whelan’s family says the former Marine is not a spy.

EPA: As anticipated, the president on Wednesday formally nominated Andrew Wheeler as acting administrator of the Environmental Protection Agency, to succeed Scott Pruitt Edward (Scott) Scott PruittJuan Williams: Swamp creature at the White House Science protections must be enforceable Conspicuous by their absence from the Republican Convention MORE, who resigned under pressure last year ( The Hill ).

FEMA: Trump on Wednesday tweeted anew that he might withhold funds from the Federal Emergency Management Agency working in California, if the state does not better mitigate wildfires and manage its forests.

Progressive Gov. Gavin Newsom, who this week succeeded former California Gov. Jerry Brown (D), is an outspoken Trump critic.

***Around town … Journalists gathered at the Newseum last night for a showing of “Vice,” the new movie about former Vice President Dick Cheney starring Golden Globe winner Christian Bale, Amy Adams and Steve Carell.

Spotted: The Hill’s Jordan Fabian, Scott Wong, Niall Stanage and Editor-in-Chief Bob Cusack, as well as Josh Lederman, Margaret Talev, Philip Rucker, Daniel Lippman, Mike Memoli and John Harwood. Lawmakers also showed up, including Rep. Ami Bera Amerish (Ami) Babulal BeraThe Hill's Coronavirus Report: iBIO Chairman and CEO Thomas Isett says developing a safe vaccine is paramount; US surpasses 150,000 coronavirus deaths with roughy one death per minute Democrats fear US already lost COVID-19 battle Karen Bass's star rises after leading police reform push MORE (D-Calif.) and Del. Eleanor Holmes Norton Eleanor Holmes NortonShakespeare Theatre Company goes virtual for 'Will on the Hill...or Won't They?' DeJoy defends Postal Service changes at combative House hearing DC delegate highlights effects of Postal Service quagmire on community MORE (D-D.C.). ***

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





President Trump’s border security fight is the right one, by former Trump campaign manager Corey Lewandowski Corey R. LewandowskiHow Trump can win reelection: Focus on Democrats, not himself Trump Jr. distances from Bannon group, says he attended 'single' event Bannon, three others charged with defrauding donors of 'We Build The Wall' campaign MORE, opinion contributor, The Hill. https://bit.ly/2M1KNMr

Terrorism is not a thing to cry wolf about, by Ruth Ellen Wasem, opinion contributor, The Hill. https://bit.ly/2ST2VKY





WHERE AND WHEN





Hill.TV’s “Rising” program, starting at 8 a.m., features interviews with Rep. Paul Mitchell Paul MitchellGOP wants more vision, policy from Trump at convention Loomer win creates bigger problem for House GOP Lisa McClain wins Michigan GOP primary in race to replace Rep. Paul Mitchell MORE (R-Mich.) and Randi Weingarten, the president of the American Federation of Teachers. http://thehill.com/hilltv

The House convenes at 10 a.m. on day 20 of the government’s lapse in funding.

The Senate meets at 9:30 a.m. and continues debate on a Middle East policy measure.

The president travels to McAllen, Texas, to advocate for increased security at the border with Mexico. He’ll be on the ground there for three hours to participate in a roundtable discussion and a briefing.

Secretary of State Mike Pompeo Michael (Mike) Richard PompeoHillicon Valley: FBI chief says Russia is trying to interfere in election to undermine Biden | Treasury Dept. sanctions Iranian government-backed hackers Treasury Dept. sanctions Iranian government-backed hackers The Hill's Morning Report - Sponsored by The Air Line Pilots Association - Pence lauds Harris as 'experienced debater'; Trump, Biden diverge over debate prep MORE is in Egypt, where today he holds a news conference and delivers a speech about the United States as “a force for good.” Beyond Cairo, he will travel to Bahrain, United Arab Emirates, Qatar, Saudi Arabia, Oman and Kuwait through Jan. 15.

The Labor Department reports at 8:30 a.m. on U.S. weekly jobless claims. The information will be viewed through the lens of the ongoing shutdown, which began Dec. 22. Data on claims filed by federal employees is released with a one-week lag.

Federal Reserve Chairman Jerome Powell speaks at 12:45 p.m. at the Economic Club of Washington, D.C. Fed Vice Chairman Richard Clarida speaks about monetary policy and the economy at 7 p.m. at Money Marketeers of New York University in New York City. President and CEO of the Federal Reserve Bank of Minneapolis Neel Kashkari speaks about immigration and economic growth at noon at the Minneapolis Club.





ELSEWHERE





> Teachers: In Los Angeles, the first teachers strike in 30 years in the nation’s second-largest school district is now set to begin on Monday ( The Los Angeles Times ). Teachers are seeking higher pay and smaller class sizes in a school district weighed down by budget deficits, including billions of dollars in obligations for pensions and health coverage.

> Students: Millions of college students are going hungry ( The Atlantic ).

> 3D paleontology: A 200-million-year-old skull measuring a yard in length was discovered in 1955 in a farm field in Great Britain and then largely forgotten on a museum shelf. Now, scientists have used CT scans and 3D technology to learn some secrets from the well preserved ancient ichthyosaur, a giant creature that once roamed the seas ( The Daily Mail ).



THE CLOSER





And finally … It’s Thursday, which means it’s time for this week’s Morning Report Quiz! Inspired by the never-ending shutdown, we’re eager for some savvy guesses and Googling about who said what, according to news and television reports this week.

Email your responses to jeasley@thehill.com or asimendinger@thehill.com , and please add “Quiz” to subject lines. Winners who submit correct answers will enjoy some richly deserved newsletter fame on Friday.

The New York Times television critic James Poniewozik wrote on Tuesday night that a particular duo he viewed looked “unfortunately like a cross between Grant Wood’s `American Gothic’ and the twins from `The Shining.’ To whom did he refer?

At the White House on Tuesday, who was reported to have said off-the-record about Trump’s planned trip today to the U.S.-Mexico border in McAllen, Texas, “It’s not going to change a damn thing”?

Which GOP senator on Tuesday advocated breaking with the White House and Senate leaders to pass bills this week to reopen parts of the government that are not embroiled in the wall funding fight, quipping with reporters, “I think we can walk and chew gum”?

Which House Democrat said Tuesday on MSNBC, referring to Immigration and Customs Enforcement, “The president should not be asking for more money to an agency that has systematically violated human rights … because right now what we are seeing is death.”

Which TV figure said after watching the president’s primetime speech, “This was Trump’s first address from the Oval Office. Up until now, he’d been using it for Kardashian meet-and-greets. But tonight, he got very serious.”

Stephen Colbert (CBS) Lester Holt (NBC) Jimmy Kimmel (ABC) Tucker Carlson (Fox News)





