Axios

Democratic leadership in the House and Senate are working on a short-term funding bill — which needs to pass before Oct. 1 to avoid a government shutdown — that includes a debt-limit increase.

Why it matters: The country will default on its debt in October for the first time in U.S. history if Congress doesn't increase the federal debt limit. Republicans and Democrats have entered a standoff — daring the other side to blink.

The U.S. Capitol Police asked the Department of Defense to provide support in the form of National Guard troops should they become necessary during a rally at the Capitol scheduled for Saturday.

Why it matters: The USCP previously said it is "closely monitoring" the event, known as "Justice for J6," which is being held in support of individuals arrested for storming the Capitol on Jan. 6.

Moderna vaccine's efficacy declines a year after it's administered, compared to protection seen in recently inoculated individuals, the vaccine maker announced Wednesday.

Driving the news: Moderna made its case for supporting booster shots, citing clinical trial data that demonstrate breakthrough infections are less common among participants approximately eight months after receiving the first dose compared to approximately 13 months.

Former U.S. House Speaker Dennis Hastert has reached a tentative out-of-court settlement with the man who accused him of child sexual abuse, AP reported Wednesday.

Why it matters: Hastert had refused to pay an outstanding $1.8 million, which was part of a deal to secure an accuser's silence, according to their lawyers. The case was set to go to trial next week.

President Biden plans to host British Prime Minister Boris Johnson at the White House next week, according to people familiar with the preparations.

Why it matters: Rewarding Johnson with a White House visit is another indication that the two leaders plan to work collaboratively on COVID-19, China and climate change.

New reporting around the chaotic final stages of President Trump's tenure underscores essential problems with the U.S. nuclear command-and-control system.

Why it matters: One person possesses the authority to launch America's massive nuclear arsenal and quite possibly end the world: the president. And there's no clear, legal way to circumvent that authority if they can't be trusted.

A federal judge will hold a hearing on Oct. 1 to consider temporarily blocking enforcement of Texas' restrictive abortion ban after an emergency request from the Biden administration.

Why it matters: The hearing comes after the Department of Justice filed a lawsuit last week against Texas over the new law, which bans nearly all abortions and awards at least $10,000 to anyone who successfully sues a person that helps a pregnant person access an abortion after six weeks.

A defamation suit accusing former President Trump of rape will move forward as planned, a federal judge said Wednesday.

Why it matters: E. Jean Carroll sued Trump for defamation after he branded her a liar for publicly alleging that he raped her in the mid-1990s. Trump's legal team had requested that the judge delay the suit while an appeals court determines whether the United States can be substituted as the defendant in the case.

A handful of former Trump officials are making a concerted effort to amass opposition to Afghan refugees fleeing the Taliban, AP reports.

Why it matters: In media appearances, position papers and meetings with GOP lawmakers, they're crafting a narrative that hinges on the anti-immigrant sentiment that defined former President Trump's rise and overall discontent with the Biden administration's withdrawal from Afghanistan.

A union supporting workers at Activision Blizzard has filed an unfair labor practice complaint to the National Labor Relations Board, alleging the game company has “repeatedly engaged in unlawful conduct” against workers fighting against working conditions at the game maker.

Why it matters: It’s another log on the fire. Activision is already facing an anti-discrimination lawsuit from the state of California, has seen workers hold a walkout and been slammed by activist shareholders for an “inadequate” response.

Sens. Alex Padilla (D-Calif.) and Rand Paul (R-Ky.) on Wednesday introduced a bill that seeks to provide a pathway to citizenship for the country's 200,000 "Documented Dreamers."

Why it matters: Documented Dreamers are children of long-term visa holders who often wait years for a green card and face deportation if they don't receive legal immigration status after turning 21, when they lose dependent status.

Pope Francis said Wednesday that Catholic bishops should not let politics influence pastoral decisions in an apparent criticism of clergy members who want to prevent pro-choice politicians from receiving Communion, AP reports.

Why it matters: President Biden's support for abortion rights has divided Catholics in the U.S. over whether he and other pro-choice politicians should be denied Communion.

Colorado Attorney General Phil Weiser announced Wednesday that an investigation found the Aurora Police Department guilty of violating state and federal laws through a pattern of racially biased policing and excessive force.

Why it matters: The investigation began amid outrage over the death of Elijah McClain, which death drew renewed attention in the wake of George Floyd's murder and focused new attention on the practices of Aurora police officers.

President Biden on Wednesday expressed "great confidence" in Joint Chiefs Chairman Mark Milley after a new book said the general secretly assured his Chinese counterpart that President Trump had no plans to launch an attack.

The big picture: Details emerged that Milley told his Chinese counterpart that if Trump did decide to attack, Milley would give him a heads-up, Axios' Jonathan Swan reports.

FBI director Christopher Wray on Wednesday apologized to U.S. gymnasts abused by Olympic Team USA gymnastics doctor Larry Nassar for agency's mishandling of the investigation.

Driving the news: Wray made the comments after four gymnasts — McKayla Maroney, Simone Biles, Aly Raisman and Maggie Nichols — testified before the Senate Judiciary Committee and detailed how the FBI mishandled their reports.

A spokesperson for Joint Chiefs Chairman Mark Milley confirmed on Wednesday that "in order to maintain strategic stability" in the final days of Donald Trump's presidency, Milley reassured his Chinese counterpart that the U.S. would not launch a surprise attack.

Driving the news: Newly released excerpts from "Peril" by Bob Woodward and Robert Costa — detailing secret moves by the nation's highest-ranking military officers to manage national security risks that Milley perceived Trump posed in the final days of his presidency — are driving questions about whether Milley went too far, Axios' Jonathan Swan writes.

The number of states where at least 35% of residents are obese has nearly doubled since 2018, according to data released by the Centers for Disease Control and Prevention.

Driving the news: Obesity rates in 16 states have now reached levels considered high by the CDC. That is up from 12 states in 2019 and nine in 2018.

New regulations on the SPAC market have been slow to come, but SEC chair Gary Gensler on Tuesday assured Congress that they are indeed coming.

Why it matters: SPAC volume has skyrocketed in the past two years, but their rules haven't evolved.

The White House is stepping up its PR push for strong climate measures on Capitol Hill even while arguing it can make lots of progress with executive powers.

Driving the news: President Biden yesterday called for congressional action in remarks at the National Renewable Energy Laboratory in Colorado.

Republican lawmakers in more than half of U.S. states have weakened state or local officials' authority to implement policies to protect the public against the coronavirus and other infectious diseases, AP and Kaiser Health News report.

The big picture: Since the coronavirus pandemic began, lawmakers in all 50 states have introduced bills to curb state and local officials' public health authority, a KHN review found.

The FBI has fired an agent accused of failing to properly investigate the sexual assault allegations against USA Gymnastics doctor Larry Nassar, the Washington Post reports.

Why it matters: Michael Langeman was fired just days before Wednesday's public hearing into the FBI's handling of the Nassar case — which will feature testimony from gymnasts Simone Biles, McKayla Maroney, Maggie Nichols and Aly Raisman.

After California Gov. Gavin Newsom (D) survived the Republican-led effort to remove him from office, recall candidate Larry Elder conceded on Tuesday night but told his supporters to "stay tuned," AP reports.

Why it matters: Elder's concession speech suggested that the recall campaign may not be his last, potentially setting up another race between the two men in 2022 when Newsom faces reelection.

Three former U.S. intelligence officers agreed to pay nearly $1.7 million in penalties over three years after admitting to violating U.S. hacking and export laws while employed by the United Arab Emirates, the Department of Justice announced Tuesday.

Why it matters: The men confessed to supplying the UAE government with advanced offensive cyber technology that could be used to illegally gain access to computers, including mobile phones, around the world.

Twelve former top U.S. national security officials are urging Congress to hit pause on a package of antitrust bills in order to consider how breaking up tech companies could harm the U.S. in its competition with China, according to a letter obtained by Axios.

The big picture: Former Defense Secretary Leon Panetta and former Director of National Intelligence Dan Coats are among those arguing that imposing severe restrictions solely on U.S. giants will pave the way for a tech landscape dominated by China — echoing a position voiced by the Big Tech companies themselves.

When Joint Chiefs Chairman Mark Milley goes before Congress on Sept. 28, he may face some of the most hostile questioning of any modern four-star general.

Driving the news: Newly released excerpts from "Peril" by Bob Woodward and Robert Costa — detailing secret moves by the nation's highest-ranking military officers to manage national security risks that he perceived Donald Trump posed in the final days of his presidency — are driving questions about whether Milley went too far. 

California Gov. Gavin Newsom (D) defeated a Republican-backed effort to remove him, AP projected on Tuesday night.

Why it matters, via Axios' Margaret Talev: Tuesday's results highlight the limits of Republicans trying to use Trump tactics in a deeply Democratic state.

North Korea fired "two ballistic missiles" into the sea from off its east coast on Wednesday, South Korea's military said, per Yonhap news agency.

Why it matters: The launch further escalates tensions in the region, two days after Pyongyang claimed to have fired new long-range cruise missiles that it described as "a strategic weapon of great significance."

Democrats plan to raise $1 trillion over 10 years by making the federal income tax code more progressive. But they won't get the money quickly — their plan actually decreases total income tax revenues in 2023. And when the money does come, it will come from the very rich.

Why it matters: Estimates released by the bipartisan Joint Committee on Taxation on Tuesday show the House Democrats' plan raising $12 billion less than the current tax regime in 2023. But it will raise $133 billion more in 2029.

The Department of Justice submitted an emergency motion late Tuesday seeking a temporary restraining order or preliminary injunction on Texas' ban on abortions after six weeks.

Why it matters: The action marks an escalation by the Biden administration in its challenge on the constitutionality of the GOP-led state's restrictive new law, after the DOJ filed a lawsuit last week following the U.S. Supreme Court's decision, in a 5-4 vote, to allow the ban to remain in place.

The U.S. Army announced on Tuesday that troops could face discipline if they are not fully vaccinated against COVID-19.

The big picture: The deadline for U.S. Army troops to be vaccinated is Dec. 15. 40% of Army troops had been fully vaccinated as of late August. National Guard units have until June 30 next year to meet the vaccination deadline.

Sen. Lindsey Graham (R-S.C.) and Rep. Mike Waltz (R-Fla.) introduced resolutions Tuesday calling on Secretary of State Antony Blinken to designate the Taliban as a terrorist organization and freeze all Afghanistan government assets held in the U.S.

Why it matters: Then-President George W. Bush signed an executive order in 2002 listing the Taliban as a "Specially Designated Global Terrorist Entity." But the group doesn't appear on the State Department's list of Foreign Terrorist Organizations (FTO).

Facing scrutiny from a Senate panel Tuesday, Secretary of State Antony Blinken admitted that he doesn't know if the U.S. mistakenly targeted an aid worker in a drone strike in Kabul that reportedly killed 10 Afghan civilians.

Driving the news: The U.S. is still investigating the strike, and maintains it "was taken to prevent an imminent threat to the airport," Pentagon spokesperson John Kirby said in a statement Tuesday. "We do work very hard to avoid civilian casualties, and we would be deeply saddened by any loss of innocent life.”

The Biden administration now has nearly 17,000 migrants assigned to special courts dedicated to processing families seeking asylum quicker.

Why it matters: New data from Syracuse University's Transactional Records Access Clearinghouse (TRAC) gives another sign of just how many migrants — including families — have been crossing the U.S.-Mexico border to claim political asylum.

Some Senate Democrats are urging President Biden to reappoint Federal Reserve Chairman Jerome Powell for a second term, suggesting that replacing him could erode the independence of the institution.

Why it matters: Public support from centrist Democrats has the potential to cinch reappointment for a figure credited with helping the country navigate the huge economic hit of the coronavirus pandemic. Powell's just completing what some termed a summer audition.

The Biden administration plans to unveil a private refugee sponsorship program next year, allowing private organizations and groups to financially support refugees — including Afghans.

Why it matters: U.S. companies and individuals have already expressed an eagerness to donate, volunteer and help rescue vulnerable Afghans. The administration's new plan will build on that, creating a whole new way for Americans to help address a burgeoning refugee crisis, Axios has learned.