The right prevails in final SCOTUS rulings

Jun 30, 2023

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Student debt relief advocates gather outside the Supreme Court.

The Supreme Court issued a pair of 6-3 rulings this morning that wiped out one of the Biden administration's major policy priorities and chipped away at LGBTQ protections. | Patrick Semansky/AP Photo

The Supreme Court cleared its docket this morning, issuing opinions on the two major cases that remained for this term.

The conservative majority of the court joined together to issue rulings that (1) struck down a major priority for President JOE BIDEN and (2) limited the rights of LGBTQ Americans.

THE $10,000 QUESTION — “Supreme Court strikes down Biden’s student debt relief plan,” by Michael Stratford and Josh Gerstein

The details: “In a 6-3 decision, the conservative majority on the court ruled that Biden’s effort to erase roughly $400 billion of student debt was an illegal use of executive power. The decision immediately upends debt relief that the Education Department approved last fall for 16 million borrowers and the pending applications of millions of additional borrowers.” Read the ruling

The context: The decision also “creates fresh political challenges for the White House, which will face pressure from progressives to make good on Biden’s promised loan forgiveness despite the legal setback.”

The Hill reaction, via CNN’s Manu Raju: “Senate Dems pressing Biden to take new administrative actions to provide relief for student borrowers after ruling. ‘The Biden administration has remaining legal routes to provide broad-based student debt cancellation,’ said Senate Majority Leader CHUCK SCHUMER.”

Interesting tidbit: The ruling cites former Speaker NANCY PELOSI’s view, expressed at a 2021 news conference, that the president does not hold the power to cancel student debt: “He can postpone. He can delay. But he does not have that power. That has to be an act of Congress.” (h/t NewsNation’s Zaid Jilani)

‘EXPRESSIVE’ LANE — “Supreme Court limits LGBTQ protections in dispute over services for same-sex weddings,” by Josh Gerstein

The details: “By a 6-3 vote, the justices sided with LORIE SMITH, an evangelical Christian and Colorado web designer who opposes same-sex marriage. Colorado law bars businesses from discriminating on the basis of sexual orientation, but Smith argued that the free speech guarantee of the federal Constitution entitles her to an exemption from that law.” Read the ruling

The context: “The ruling Friday in 303 Creative v. Elenis marks an apparent end to a remarkable series of Supreme Court victories for gay and transgender Americans over the past two decades,” Josh writes. CNN’s Ariane de Vogue and Devan Cole add that the ruling “will pierce state public accommodation laws for those businesses who sell so-called ‘expressive’ goods” and note that it will “alarm critics who fear the current court is setting its sights on overturning the 2015 marriage case.”

TALKER — “I Worked With Anita Hill to Fight Clarence Thomas’ Confirmation. Our Worst Fears Came True,” by Kimberlé Williams Crenshaw for POLITICO Magazine: “As national commitments to racial justice and basic civil rights continue to unravel, under what is functionally regarded as the Thomas Court, the very health of our multiracial democracy is a long-term casualty of that day.  This week’s Supreme Court ruling overturning affirmative action is further confirmation of those fears.”

Interesting tidbit, via Anthony Adragna: “Justice Clarence Thomas is the 12th longest serving justice in SCOTUS history. Another five years on the bench and he could be the longest-serving justice in history.”

Happy Friday afternoon. Thanks for reading Playbook PM. Programming note: Playbook PM will be off Monday and Tuesday for the Fourth of July but will be back in your inboxes on Wednesday. Playbook will still publish every morning. Drop me a line: gross@politico.com.

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THE ECONOMY

INFLATION NATION — One of the Fed’s preferred inflation gauges cooled off in May, reaching its “lowest level since April 2021,” AP’s Christopher Rugaber writes.

The details: “The inflation index showed that prices rose 3.8% in May from 12 months earlier, down sharply from a 4.4% year-over-year surge in April. And from April to May, prices ticked up just 0.1%.”

The context: “Still, last month’s progress in easing overall inflation was tempered by an elevated reading of ‘core’ prices, a category that excludes volatile food and energy costs. The increase underscored the Fed’s belief that it will need to keep raising interest rates to conquer high inflation.”

MORE POLITICS

GO BIG SKY OR GO HOME — TIM SHEEHY, a Republican who is running to unseat Montana Democratic Sen. JON TESTER, is staring down some potentially limiting conflicts as he sets off on his campaign. Sheehy is the CEO of Bridger Aerospace, “a company that gets most of its money from federal government contracts, presenting potential conflict-of-interest questions that U.S. Senate hopefuls usually don’t face,” Bloomberg’s Zach Cohen and Caleb Harshberger write.

HOT TOPIC — LGBTQ+ issues have been pushed into the political spotlight during Pride Month, as Republicans have “expressed criticism of celebrations and in some cases resurfaced opposition to same-sex marriage,” WaPo’s Isaac Arnsdorf, Josh Dawsey and Hannah Knowles write. “The attacks also coincide with signs of a shift in public opinion, with opposition to LGBTQ+ rights rising again, especially among Republicans, polling shows.”

CASH SPLASH — “After Republicans expelled him, campaign for Tennessee Democratic Rep. Pearson says he raised $860K,” by AP’s Jonathan Mattise

STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president’s ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today.

CONGRESS

FOR YOUR RADAR — “Coast Guard hid sexual assault probe from Senate for years, committee letter says,” by Irie Sentner

JAN. 6 AND ITS AFTERMATH

YOWZA — “Man Accused in Jan. 6 Riot Is Arrested With Weapons Near Obama’s Home,” by NYT’s Luke Broadwater and Aishvarya Kavi

POLICY CORNER

SWAMP READ — “Ethics Official Owned Meta Stock While Recommending FTC Chair Recuse Herself From Meta Case,” by WSJ’s Brody Mullins and Rebecca Ballhaus: “LORIELLE PANKEY, the FTC’s designated agency ethics official, in an August 2022 memo said [FTC Chair LINA] KHAN’s past statements opposing acquisitions by Meta raised questions about her ability to be impartial as the FTC reviewed the company’s planned acquisition of a virtual reality app developer. At the time of her recommendation, Pankey owned between $15,001 and $50,000 in Meta stock in a joint account, and still owns it, according to FTC officials and her public financial disclosures.”

MILITARY MALAISE — “The Military Recruiting Crisis: Even Veterans Don’t Want Their Families to Join,” by WSJ’s Ben Kesling: “The children of military families make up the majority of new recruits in the U.S. military. That pipeline is now under threat, which is bad news for the Pentagon’s already acute recruitment problems, as well as America’s military readiness.”

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BEYOND THE BELTWAY

ABORTION FALLOUT — “The End of One of the South’s Last Abortion Havens,” by The New Republic’s Grace Segers: “North Carolina’s new law is not as restrictive as some others across the South, such as the complete ban in neighboring Tennessee or the six-week ban under review by South Carolina’s state Supreme Court. But Tar Heel State providers fear that it will complicate care for individuals seeking abortions after the first trimester, including those who may suffer life-threatening health complications in their pregnancies.”

HOLIDAY VIBE CHECK — “They envision the world’s tallest flagpole in this Maine town. Instead of uniting, it is dividing,” by AP’s David Sharp in Columbia Falls, Maine: “How does an American town demonstrate its love of country in an era when even the Stars and Stripes themselves have been politicized?”

AMERICA AND THE WORLD

BACK IN THE HEADLINES — ELIÁN GONZÁLEZ, a new member of Cuba’s congressional body, talks with AP’s Andrea Rodríguez about the increasing political tensions between the U.S. and his home country and the spike in immigration — a topic that hits close for González, whose repatriation became the center of an international spectacle after emigrating to Florida on a journey where his mother died. Said González, “I respect all those who made the decision to leave Cuba, I respect those who do so today, just as I do my mom. … My message will always be that (those who leave) do all they can to ensure that Cuba has a status (without sanctions) equal to any country in the world.”

DANCE OF THE SUPERPOWERS — “New Chinese Law Raises Risks for American Firms in China, U.S. Officials Say,” by WSJ’s Kate O’Keeffe: “A bulletin being issued Friday by the National Counterintelligence and Security Center and viewed by The Wall Street Journal warns that the revised law is vague about what constitutes espionage and gives the government greater access to and control over companies’ data, potentially turning what would be considered normal business activities into criminal acts.”

STIFLING THE STRONGMAN — “Brazil court votes to bar Bolsonaro from elections until 2030,” by AP’s Mauricio Savarese and Carla Bridi in Sao Paulo

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PLAYBOOKERS

OUT AND ABOUT — SPOTTED at the Aspen Ideas Festival, in partnership with NBCU News Group, in Aspen, Colo., from June 24-30: Education Secretary Miguel Cardona, U.S. Surgeon General Vivek Murthy, Liz Cheney, Andrew Yang, Cesar Conde, Rebecca Blumenstein, Andrea Mitchell, Lester Holt, Tom Llamas, Jenna Bush Hager, Brian Cox, John Leguizamo, Rainn Wilson, Andrew Ross Sorkin, Savannah Sellers, Muriel Bowser, Reema Bandar Al-Saud, Mary Barra and Dara Khosrowshahi.

MEDIA MOVES — Stephanie Murray is now a national political reporter for The Messenger. She most recently was a senior reporter for The Block and is a POLITICO alum. … Katherine Swartz is now energy and environment correspondent at National Journal, where she’ll be covering Congress. She most recently was an intern for NPR’s Washington desk and “Here & Now.”

TRANSITIONS — Ryan Uyehara is now deputy chief of staff at the Office of Personnel Management. He most recently was special assistant to the assistant secretary of Defense for health affairs. … José Morales is now senior campaign director for democracy at the Hub Project. He most recently was chief of staff for Stacey Abrams’ Georgia gubernatorial campaign and managed Fair Fight Action’s national advocacy campaign for voting reform. …

… Carlos Cardona is now campaign manager for Marianne Williamson. He previously was Williamson’s New Hampshire state director. … Tom Moore is now a senior fellow on the democracy team at the Center for American Progress. He was previously chief of staff for FEC Commissioner Ellen Weintraub.

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