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Hill.TV’s “Rising” program, starting at 8 a.m., tune in for interviews with Rep. Matt Gaetz Matthew (Matt) GaetzFlorida attorney general scrutinizing Bloomberg paying fines for felons to vote Lara Trump campaigns with far-right activist candidate Laura Loomer in Florida House to vote on removing cannabis from list of controlled substances MORE (R-Fla.) and former Rep. Steve Israel Steven (Steve) J. IsraelThe Hill's Morning Report - Presented by Facebook - Trump, Biden intensify battleground focus as 2020 race tightens Biden allies express confidence as convention begins The Hill's Campaign Report: Biden closes in on vice presidential pick MORE (D-N.Y.). http://thehill.com/hilltv

⚾ Major League Baseball’s best players combined to smash a record 10 home runs at last night’s All-Star game at Nationals Park in Washington, D.C. The American League triumphed 8 - 6 over the National League in 10 innings.



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Republicans in Congress are spending what they hope won’t be their final months of governing in the majority by debating how to rebuke 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 and check his authority when it comes to Russia, NATO and trade.

The blowback against Trump’s remarks at a press conference with Russian President Vladimir Putin has been so intense that the president offered a rare walk-back on Tuesday.

Speaking from the Roosevelt Room of the White House, the president said he misspoke in Helsinki — he meant to say that Russia did interfere in the 2016 election. Trump also praised his senior intelligence officials and their conclusions, a day after favoring Putin’s denials of Russian government interference in the 2016 U.S. election. Vice President Pence and 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 privately urged Trump to issue a correction, according to Bloomberg.

But the damage was done. Trump’s remarks on Monday in Finland infuriated Republicans and conservatives of all stripes, and the GOP-controlled Congress searched for actions to hold the president to account.

The Hill: Helsinki summit becomes new flashpoint for GOP anger.

The Hill: Senate weighs new Russia response amid Trump backlash.

Among the items up for consideration:

“I think we ought to tighten the screws on Russia.” – Cornyn.

Rubio and Van Hollen: Our elections are in danger. Congress must defend them.

Their bill outlines a series of punishments for Russia if the Kremlin is caught interfering again, including new economic sanctions and freezing assets for senior political figures.

The House and Senate both passed measures last week reaffirming the U.S. commitment to NATO after Trump clashed with U.S. allies in Brussels. But expect more messaging bills or statements from GOP leaders seeking to soothe global tensions. On Tuesday, for instance, Senate leaders appointed five new Republicans and five new Democrats to a NATO Observer Group that was revived earlier this year.

“We value the NATO treaty. We believe the European Union countries are our friends and the Russians are not. We understand the Russian threat.” – McConnell at a Tuesday press conference.

Fortunately for Trump, the outrage over his handling of Putin does not appear to be threatening the momentum of his nomination of Brett Kavanaugh to the Supreme Court.

No senior administration officials quit the government in protest after Monday’s firestorm. Trump went out of his way to praise 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 from the White House on Tuesday, a day after Coats took the unusual step of releasing a statement contradicting the president’s claims at the Helsinki summit.

The Hill: Trump’s Russia remarks put intelligence chiefs in a tough spot.

Still, Republicans are enormously frustrated by yet another controversy that has distracted voters from the party’s focus on the economy and tax cuts. The president issued his rhetorical revisions during a meeting with Republicans convened to discuss a second tax-reduction bill the GOP hopes to champion in September, in time for the election.

Across the aisle, Democrats are demanding post-Helsinki hearings about what the administration promised Putin and Russian officials. They’ll get their first chance next week, when Secretary of State Mike Pompeo appears before the Senate Foreign Relations Committee. Pompeo sat across from Putin on Monday and met with his counterpart, Sergey Lavrov, but was not present for Trump’s two-hour, private conversation with the Russian president.

The Memo: Trump allies hope he can turn the page on Russia fiasco.

Reuters/Ipsos poll: Majority of Americans think Trump is mishandling Russia.

Trump defended the Helsinki summit anew over Twitter early Wednesday morning.

LEADING THE DAY





***Breaking last night*** Rep. Martha Roby Martha Dubina RobyBarry Moore wins Alabama GOP runoff to replace Martha Roby The 14 other key races to watch on Super Tuesday Collins Senate bid sets off game of musical chairs for GOP MORE (R-Ala.) is the projected winner for Alabama’s GOP primary runoff in the 2nd District ( The Hill) … Roby defeated former Rep. Bobby Bright (R), a Democrat-turned-Republican who she ousted in 2010 … Roby had faced backlash for her past criticism of Trump but the president endorsed her reelection effort.

TRADE: In an unmistakable sign that global trading partners are charting new courses around the United States and its protectionist tariffs policies, Japan and the European Union (EU) on Tuesday announced a pact to eliminate nearly all tariffs (CNBC). European Council President Donald Tusk hailed the deal as “the largest bilateral trade deal ever.”

> Japan and the EU account for about a third of global gross domestic product (GDP) and their trade relationship has room to grow, according to EU officials, who expect the deal to boost the EU economy by 0.8 percent and Japan’s by 0.3 percent over the long term (Reuters).

Congress – tariffs: Senate Finance Committee Chairman Orrin Hatch Orrin Grant HatchBottom line Bottom line Senate GOP divided over whether they'd fill Supreme Court vacancy MORE (R-Utah) on Tuesday echoed Corker in backing legislative steps that would block the Trump administration’s tariffs slapped on imports from allies. Members of the president’s party are deeply opposed to U.S. tariffs on imported steel and aluminum applied to long-standing allies, along with the resulting economic impacts of retaliatory tariffs imposed by other countries.

Hatch took to the Senate floor and to Twitter to make his displeasure clear (The Hill).

Federal Reserve – trade war: The Hill: Federal Reserve Chairman Jerome Powell believes mounting trade tensions between the United States and key economic partners could pose serious risks to the U.S. and global economy. In Senate testimony on Tuesday, Powell, who was appointed by Trump to lead the central bank, said escalating tariffs had already stunted business growth.

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➔ POLITICS & CAMPAIGNS: Former President Obama has largely steered clear of politics since leaving the White House. But in a Tuesday speech at the 2018 Nelson Mandela Annual Lecture in Johannesburg, South Africa, the former president appeared to take some shots at the current occupant of 1600 Pennsylvania Ave.

"Look around. Strongman politics are ascending suddenly, whereby elections, some pretense of democracy, are maintained, the form of it. But those in power seek to undermine every institution or norm that gives democracy meaning."

"The free press is under attack. Censorship and state control of media is on the rise. Social media, once seen as a mechanism to promote knowledge, understanding, and solidarity, has proved to be just as effective at promoting hatred, and paranoia, and propaganda, and conspiracy theories."

“We now stand at a crossroads. A moment in time in which two very different visions of humanity's future compete for the hearts and mind of citizens around the world."

More on the Democrats…

> Senate Democrats face an uphill battle in winning the upper chamber in 2018 but cash will not be a problem — Democratic candidates have built a massive fundraising lead over their Republican challengers (The Hill).

> Vermont 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) and self-described democratic socialist Alexandria Ocasio-Cortez (D) will hit the campaign trail for the first time together this weekend in support of progressive candidates in Kansas. Sanders and Ocasio-Cortez are party outsiders with massive followings among the grass roots.

> House Democratic Caucus Vice Chairwoman Linda Sánchez (D-Calif.), announced her bid to replace Rep. Joseph Crowley (N.Y.) as caucus chair for the next Congress. Crowley, who is presently the No. 4 Democrat in the House, lost his primary to Ocasio-Cortez. Sánchez has called on Democratic leaders, from House Minority Leader Nancy Pelosi Nancy PelosiHoyer: House should vote on COVID-19 aid — with or without a bipartisan deal Ruth Bader Ginsburg lies in repose at Supreme Court McCarthy threatens motion to oust Pelosi if she moves forward with impeachment MORE (D-Calif.) on down, to step aside for a new generation of leadership (The Hill).

On the Republican side…

> Rep. Dana Rohrabacher Dana Tyrone RohrabacherDemocrat Harley Rouda advances in California House primary Lawyers to seek asylum for Assange in France: report Rohrabacher tells Yahoo he discussed pardon with Assange for proof Russia didn't hack DNC email MORE (R-Calif.), who has routinely won his Southern California district by double-digits, trails his Democratic challenger Harley Rouda in a new poll (Monmouth University).

> Americans for Prosperity is putting $1.8 million behind new digital and television ads attacking Sen. Claire McCaskill Claire Conner McCaskillMomentum growing among Republicans for Supreme Court vote before Election Day Democratic-linked group runs ads in Kansas GOP Senate primary Trump mocked for low attendance at rally MORE (D) in Missouri for not supporting the GOP’s tax-cuts bill (YouTube). McCaskill is a top target for Republicans this cycle. Pence will campaign for her challenger, state Attorney General Josh Hawley, on Thursday in St. Louis (St. Louis Post-Dispatch).

On to 2020 … Strong majority of Democrats want a fresh face in the presidential race (Rasmussen) … Democratic strategists want to see more fight out of their field of potential Trump challengers (The Hill) … A look at the House Democrats who might run for president (The Hill).

IN FOCUS/SHARP TAKES





➔ ADMINISTRATION & WHITE HOUSE: The president’s policies are making inroads in executive departments, in the courts and in the air.

IRS - anonymity for donors: The Hill: In a victory for conservatives, the Treasury Department and the IRS ruled that certain tax-exempt groups will no longer be required to provide the names and addresses of donors to the government. Conservatives have long urged the IRS to bar collection of the donor information as a way to prevent targeting groups for political beliefs.

> Sen. Ron Wyden Ronald (Ron) Lee WydenDemocrats call for declassifying election threats after briefing by Trump officials Read Democrats' report countering Republicans' Biden investigation Top GOP senators say Hunter Biden's work 'cast a shadow' over Obama Ukraine policy MORE (D-Ore.) vowed on Tuesday to oppose the confirmation of Charles Rettig, Trump’s nominee to lead the IRS, unless he agrees to withdraw the new guidance. Wyden is the ranking member of the Senate Finance Committee (The Hill). “It is the latest attempt by [Treasury] Secretary [Steven] Mnuchin and Donald Trump to eliminate transparency and keep officials and lawmakers from following the money,” he said.

HHS - family planning grants: A federal judge on Monday ruled against birth control organizations that tried to block the Trump administration from shifting a federal family-planning grant program toward prioritizing groups that are faith-based and counsel abstinence (Reuters).

Justice Department - AT&T-Time Warner merger: The DOJ's appeal in court of an AT&T-Time Warner merger injected more uncertainty into the business terrain for big deals. It comes as a boost for Disney's efforts to buy much of 21st Century Fox, and serves as a caution for industry giants such as expansion-minded Comcast (CNBC).

Labor Department - persuader rule: The Hill: The Trump administration on Tuesday rescinded a controversial Obama-era rule that would have forced employers to disclose outside consultants they hire to counter workers' union organizing efforts … By issuing a final rule July 17 to do away with the “persuader rule,” the department concluded a contentious regulatory and litigation history that occupied much of the Obama administration. A federal judge had rejected the rule before it took effect, which influenced the current administration’s decision to change course (Bloomberg).

U.S. climate scientists head to France: U.S. climate scientists have been invited by the French government to leave the United States to work there under a grant program created by President Emmanuel Macron. Ben Sanderson, a project scientist at the National Center for Atmospheric Research in Boulder, Colo., is among the first group of 18 researchers to accept the offer. He explains what U.S. funding agencies made clear: “Producing [climate] science that has potential political ramifications was not going to be encouraged [under the Trump administration].” (Yale Environment 360, Yale University).

West Wing turnstile: The Hill: Trump tapped a Capitol Hill and K Street veteran to lead his legislative affairs office. Shahira Knight takes over for Marc Short, who leaves the White House this month for the private sector. Knight, who moves into the job from Trump’s National Economic Council, played a key role in developing last year’s GOP tax-cut bill. In June, many thought Knight was preparing to leave the White House to begin a new lobbying job (Politico).

OMB – deficit estimate: The Hill: The White House Office of Management and Budget announced its updated deficit projection of $1 trillion in the fiscal year that begins Oct. 1. Fiscal hawks and many Republicans view rising deficits and debt as bad news, both economically and politically.

Air Force One re-hued: Trump confirmed an Axios report that he wants the Air Force to overhaul the two-toned blue paint favored since the Kennedy administration on the iconic Boeing aircraft used for presidential travel. Trump’s makeover envisions a red, white and blue scheme, similar to his private campaign jet in 2016 (CBS News). Not everyone is a fan of this idea.



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





Putin’s ploy to learn what we know, by Stephen Blank, opinion contributor, The Hill. https://bit.ly/2zPHEwS

Trump’s meeting with Putin was the right thing for America, by Paris Dennard, opinion contributor, The Hill. https://bit.ly/2mmVs8C





WHERE AND WHEN





The House will meet at 10 a.m. Fed Chairman Powell will testify at a House Financial Services Committee hearing this morning, about "monetary policy and the state of the economy.” A trade subcommittee of the House Ways and Means Committee will explore a touchy subject this afternoon: “Effects of tariffs on U.S. agriculture and rural communities."

The Senate convenes at 10 a.m. to consider judicial and executive nominations. The Senate Commerce, Science and Transportation Committee will hold a hearing this morning about sharks, just in time for mid-summer.

The president has a meeting with the Cabinet. And according to CBS Evening News, he is scheduled to sit down with anchor Jeff Glor for an interview at the White House today for broadcast tonight, with more of the discussion to air Thursday.

The Aspen Security Forum begins today and continues through Saturday in Aspen, Colo. Among federal officials scheduled to discuss current events and policies: FBI Director Christopher Wray (tonight); Director of National Intelligence Dan Coats (Thursday afternoon); 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 (Thursday afternoon); 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 (Thursday evening); John Rood, the Pentagon’s under secretary for policy (Friday afternoon); Michael Collins, CIA deputy assistant director (to discuss China on Friday afternoon); and Paul Nakasone, commander, U.S. Cyber Command and director, National Security Agency (Saturday evening). The forum is presented by The Aspen Institute and NBC News/MSNBC.





ELSEWHERE





> U.S. to make drugs more easily available, cutting the role that doctors play (Bloomberg News).

> Chicago may become the largest city in the U.S. to try a universal basic income, (The Intercept).

> Human cancers aren’t contagious, but dogs and other animals aren’t so lucky (Popular Science).





THE CLOSER





And finally … We bring you two mysteries, and searches for identities…

Whose remains fill a 30-ton sarcophagus recently found in Alexandria, Egypt? It’s a sealed black, nine-foot-long granite coffin uncovered at a construction site, and the internet has been buzzing (National Geographic).

And who are these happy family members pictured in slides found inside a 1950s-era projector bought at a Goodwill store in North Georgia? (CNN) A search is on to reunite an unidentified family with its photographic history (Atlanta Journal-Constitution).





