McCarthy juggles a government shutdown and a Biden impeachment inquiry

House Speaker Kevin McCarthy is a man who stays in motion — enthusiastically greeting tourists at the Capitol, dashing overseas last week to the G7 summit of industrial world leaders, and raising funds back home to elect fellow Republicans to the House majority. But beneath the whirlwind of activity is a stubborn standstill, an imbalance of power between the far-right Republicans who hoisted McCarthy to the speaker’s role yet threaten his own ability to lead the House. It’s a political standoff that will be tested anew as the House returns this week from a long summer recess and McCarthy faces a collision course of difficult challenges — seeking to avoid a government shutdown, support Ukraine in the war and launch an impeachment inquiry into President Joe Biden. “They’ve got some really heavy lifting ahead,” said the No. 2 Republican in the Senate, John Thune, of South Dakota. McCarthy, of California, is going to “have his hands full trying to figure out how to navigate and execute,” he said. Congress has been here before, as has McCarthy in his nearly two decades in office, but the stakes are ever higher, with Republicans powered by an increasingly hard-right faction that is refusing to allow business as usual in Washington. With former President Donald Trump’s backing, McCarthy’s right-flank pushed him into the speaker’s office at the start of the year only after he agreed to a long list of conservative demands — including the ability to call a quick vote to “vacate the chair” and remove him from office. That threat of an abrupt ouster hovers over McCarthy’s every move, especially now. To start, Congress faces a deadline to fund the government by the end of the month, or risk a potentially devastating federal shutdown. There are just 11 working days for Congress to act once the House resumes Tuesday. McCarthy and his team are pitching lawmakers on a stopgap funding bill, through Nov. 1, to keep the government running under a 30-day continuing resolution, or CR, according to a leadership aide granted anonymity to discuss the private talks. But as McCarthy convenes lawmakers for a private huddle, even the temporary funding is expected to run into opposition from his right flank. Facing a backlash from conservatives who want to slash government funding, McCarthy may be able to ease the way by turning to another hard-right priority, launching a Biden impeachment inquiry over the business dealings of the president’s son, Hunter Biden.

Some states reject federal money to find and replace dangerous lead pipes

As the Biden administration makes billions of dollars available to remove millions of dangerous lead pipes that can contaminate drinking water and damage brain development in children, some states are turning down funds. Washington, Oregon, Maine and Alaska declined all or most of their federal funds in the first of five years that the mix of grants and loans is available, The Associated Press found. Some states are less prepared to pay for lead removal projects because, in many cases, the lead must first be found, experts said. And communities are hesitant to take out loans to search for their lead pipes. States shouldn’t “shrug their shoulders” and pass up funds, said Erik Olson, a health and food expert at the environmental group Natural Resources Defense Council. “It’s troubling that a state would decide to take a complete pass on the funding because part of the reason for the funding is to figure out whether you even have lead,” Olson said. The Biden administration wants to remove all 9.2 million lead pipes carrying water to U.S. homes. Lead can lower IQ and create behavioral problems in children. The 2021 infrastructure law provides $15 billion to find and replace them. That money will help a lot, but it isn’t enough to get all the toxic pipes out of the ground. State programs distribute the federal funds to utilities. The Environmental Protection Agency said it is reviewing state requests to decline funds but did not provide a full list of states that have said no so far. That information will be available in October, officials said. States that declined first-year funds can still accept them during the remaining four years. “EPA has been working closely with our state partners on utilizing Bipartisan Infrastructure Law funding that is available,” the agency said. Lead pipes are far more common in some states such as Michigan and Illinois, which each have hundreds of thousands. The harm there is clear. Flint’s lead crisis elevated lead in tap water to a national health issue. Residents of Benton Harbor, Michigan, drank water with too much lead for years until all their lead pipes were replaced. In response, however, Michigan is clamoring for as much money as it can get to remove lead. The states that declined funds have fewer problematic pipes, but that doesn’t mean lead isn’t an issue. There’s concern about lead in some Maine schools. Portland, Oregon, has struggled with high lead levels for years, although recent tests have been better and officials say the issue isn’t lead pipes, but household plumbing.

Biden goes west to talk about his efforts to combat climate change

President Joe Biden will travel to Arizona, New Mexico and Utah next week and is expected to talk about his administration’s efforts to combat climate change as the region endures a brutally hot summer with soaring temperatures, the White House said Monday. Biden is expected to discuss the Inflation Reduction Act, America’s most significant response to climate change, and the push toward more clean energy manufacturing. The act aims to spur clean energy on a scale that will bend the arc of U.S. greenhouse gas emissions. July has been the hottest month ever recorded. Biden last week announced new steps to protect workers in extreme heat, including measures to improve weather forecasts and make drinking water more accessible. Members of Biden’s administration also are fanning out over the next few weeks around the anniversary of the landmark climate change and health care legislation to extol the administration’s successes as the Democratic president seeks reelection in 2024. Vice President Kamala Harris heads to Wisconsin this week with Commerce Secretary Gina Raimondo to talk about broadband infrastructure investments. Secretary of Agriculture Tom Vilsack goes to Oregon to highlight wildfire defense grants, Transportation Secretary Pete Buttigieg will go to Illinois and Texas, and Secretary of Education Miguel Cardona heads to Maryland to talk about career and technical education programs. The Inflation Reduction Act included roughly $375 billion over a decade to combat climate change and capped the cost of a month’s supply of insulin at $35 for older Americans and other Medicare beneficiaries. It also helps an estimated 13 million Americans pay for health care insurance by extending subsidies provided during the coronavirus pandemic. The measure is paid for by new taxes on large companies and stepped-up IRS enforcement of wealthy individuals and entities, with additional funds going to reduce the federal deficit.

Bankruptcy Filings Rise 10%, and Courts Feel the Pinch

Personal and business bankruptcy filings rose 10 percent in the twelve-month period ending June 30, 2023, compared with the previous year. Bankruptcy totals are reported four times annually by the U.S. government. According to statistics released by the Administrative Office of the U.S. Courts, annual bankruptcy filings totaled 418,724 in the year ending June 2023, compared with 380,634 cases in the previous year. Business filings rose 23.3 percent, from 12,748 to 15,724 in the year ending June 30, 2023. Non-business bankruptcy filings rose 9.5 percent to 403,000, compared with 367,886 in the previous year. On a broader scale, according to the newest statistics released by the Administrative Office of the U.S. Courts, annual bankruptcy filings totaled 418,724 in the year ending June 2023, compared with 380,634 cases in the previous year. Bankruptcy totals for the previous 12 months are reported four times annually. Filings over any 12-month period have increased only rarely since filings peaked in 2010. Bankruptcies fell sharply after the pandemic began in early 2020, despite some early COVID-related disruptions to the economy.

US climate law is already turbocharging clean energy technology

On a recent day under the July sun, three men heaved solar panels onto the roof of a roomy, two-story house near the banks of the Kentucky River, a few miles upstream from the state capitol where lawmakers have promoted coal for more than a century. The U.S. climate law that passed one year ago offers a 30% discount off this installation via a tax credit, and that’s helping push clean energy even into places where coal still provides cheap electricity. For Heather Baggett’s family in Frankfort, it was a good deal. “For us, it’s not politically motivated,” said Baggett. “It really came down to financially, it made sense.” On August 16, after the hottest June ever recorded and a scorching July, America’s long-sought response to climate change, the Inflation Reduction Act, turns one year old. In less than a year it has prompted investment in a massive buildout of battery and EV manufacturing across the states. Nearly 80 major clean energy manufacturing facilities have been announced, an investment equal to the previous seven years combined, according to the American Clean Power Association. “It seems like every week there’s a new factory facility somewhere” being announced, said Jesse Jenkins, a professor at Princeton and leader of the REPEAT Project which has been deeply involved in analysis of the law. The IRA is America’s most significant response to climate change, after decades of lobbying by oil, gas and coal interests stalled action, while carbon emissions climbed, creating a hotter, more dangerous world. It is designed to spur clean energy buildout on a scale that will bend the arc of U.S. greenhouse gas emissions. It also aims to build domestic supply chains to reverse China’s and other nations’ early domination of this vital sector. One target of the law is cleaner transportation, the largest source of climate pollution for the U.S. Siemens, one of the biggest tech companies in the world, produces charging stations for EVs. Executives say this alignment of U.S. policy on climate is driving higher demand for batteries.

Amazon pushes back against Europe’s pioneering new digital rules

Amazon is disputing its status as a big online platform that needs to face stricter scrutiny under European Union digital rules taking effect next month, the first Silicon Valley tech giant to push back on the pioneering new standards. The online retailer filed a legal challenge with a top European Union court, arguing it’s being treated unfairly by being designated a “very large online platform” under the 27-nation bloc’s sweeping Digital Services Act. Amazon, whose filing to the European General Court was made available Tuesday, is the second company to protest the classification. German online retailer Zalando filed a legal claim two weeks ago with a similar argument. The Digital Services Act imposes new obligations on the biggest tech companies to keep users safe from illegal content and dodgy products, with violations punishable by potentially billions in fines or even a ban on operating in the EU. The rules, which will take effect on Aug. 25, are expected to help Europe maintain its place as standard setter in global efforts to rein in the power of social media companies and other digital platforms. Seattle-based Amazon is one of 19 companies classed as the largest online platforms and search engines under the DSA, which means they will have to better police their services to protect European users from hate speech, disinformation and other harmful online content. The European Commission, the EU’s executive arm, declined to comment directly on the case, saying it would defend its position in court.

Judge allows North Carolina’s revised 12-week abortion law to take effect

A federal judge ruled on Friday that nearly all of North Carolina’s revised 12-week abortion law scheduled to begin this weekend can take effect, while temporarily blocking one rule that doctors feared could expose them to criminal penalties. The decision by U.S. District Judge Catherine Eagles sets aside that rule but allows the law’s remaining provisions to begin on Saturday while litigation continues. Abortion providers had last week requested a blanket order halting all of the July 1 restrictions pending their court challenge. Planned Parenthood South Atlantic and a physician said several sections in the newly revised law were so vague and seemingly contradictory that doctors could unintentionally break the law, leaving them unable to care for women seeking legal abortions. But the Republican-controlled General Assembly passed legislation this week revising or repealing nearly all of the challenged provisions, making arguments against most of them moot. Among other things, the lawmakers clarified that medication abortions will be legal in nearly all cases through 12 weeks, and that a lawful abortion remains an exception to North Carolina’s fetal homicide statute. Eagles, who was nominated by former President Barack Obama, had said in court that it would be overly broad to block enforcement of the entire law. Instead, she directed that for at least the next two weeks, the state cannot enforce a rule saying doctors must document the existence of a pregnancy within the uterus before conducting a medication abortion. The abortion providers’ lawyers argued that the language raised questions about whether abortion pills can be dispensed when it’s too early in a pregnancy to locate an embryo using an ultrasound — subjecting a provider to potentially violating the law.