Axios

President Biden has canceled a trip to Chicago on Wednesday and will stay in Washington to continue negotiations on key pieces of his legislative agenda, a White House official confirmed Tuesday.

Why it matters: It's a sign of how crucial the coming days of talks will be if Biden is to advance his $3.5 trillion budget reconciliation package and his flagship infrastructure bill, with a vote for the latter planned for Thursday.

A U.S. judge on Tuesday cleared the way for former Peruvian President Alejandro Toledo to be extradited back to Peru, per Reuters.

The big picture: Peruvian authorities accuse Toledo of negotiating bribes with Brazilian conglomerate Odebrecht SA while serving as president from 2001 to 2006, Reuters notes. Toledo denies any wrongdoing.

The nation's three largest drug distributors reached a $75 million settlement agreement Tuesday with the Cherokee Nation to resolve a lawsuit alleging the companies contributed to an opioid crisis in the tribe's territory.

Why it matters: This comes after the three distributors — AmerisourceBergen, Cardinal Health and McKesson — and Johnson & Johnson reached a $26 billion settlement with a group of state attorney generals to settle similar claims, but it did not include any of the nation's Native American tribes.

Alabama state lawmakers are trying to funnel up to $400 million of the state's American Rescue Plan funds to pay for a $1.3 billion plan to build and renovate prisons across the state, the Associated Press reports.

Why it matters: Diverting dollars from the COVID-relief package, passed in March, is prompting criticism over misuse.

The Drug Enforcement Administration issued a public safety alert Monday warning of a rise in the circulation of fake and potentially lethal prescription pills containing fentanyl and methamphetamine.

By the numbers: The agency said it's seizing counterfeit pills "at record rates," with over 9.5 million seized so far this year — more than the last two years combined.

Joint Chiefs of Staff Chairman Gen. Mark Milley admitted at a Senate hearing Tuesday that he spoke with Bob Woodward and other journalists for their recent books about the Trump presidency.

The latest: Grilled on why he felt the need to speak to reporters, Milley told Republican senators he frequently speaks to the media and does so to promote transparency with the government — though he acknowledged that he sometimes does so anonymously.

Top military leaders confirmed in a Senate hearing Tuesday they recommended earlier this year that the U.S. keep 2,500 troops in Afghanistan, and that they believed withdrawing those forces would lead to the collapse of the Afghan military.

Why it matters: Biden denied last month that his top military advisers wanted troops to remain in Afghanistan, telling ABC's George Stephanopoulos: "No one said that to me that I can recall."

Former President Trump has lost an effort to enforce a nondisclosure agreement against former White House staffer Omarosa Manigault Newman over her tell-all book about serving in his administration.

State of play: The arbitrator, Andrew Brown, wrote in a decision that the definition of what comment was protected by the NDA was "vague and unenforceable" and therefore "invalid under New York contract law."

Sen. Elizabeth Warren (D-Mass.) questioned Federal Reserve chair Jerome Powell's record on financial regulation during a hearing Tuesday, calling him a "dangerous man" and saying that she would not support his renomination for a second term.

Driving the news: While the Fed chair’s term expires in early 2022, President Biden is expected to make a decision this fall on whether to reappoint Powell or nominate another candidate.

A judge on Tuesday sentenced the gunman who murdered five employees at the Capital Gazette newspaper in 2018 to more than five life sentences without the possibility of parole.

Driving the news: Anne Arundel County Judge Michael Wachs ordered the sentence for Jarrod Ramos. The judge said that Ramos showed no regrets for the shooting — which is considered one of the worst attacks on journalism in U.S. history — and told a state psychiatrist he would continue killing if released, AP reports.

Joint Chiefs of Staff Chairman Mark Milley told senators on Tuesday that top Trump officials, including chief of staff Mark Meadows, were briefed on calls he made to reassure his Chinese counterpart that former President Trump would not launch a surprise attack in his final days in office.

Why it matters: Some Republicans have accused Milley of disloyalty and demanded he resign in the wake of the revelations, which were first reported in Bob Woodward and Robert Costa's new book. Milley insisted in his testimony the calls were completely appropriate and intended to de-escalate the possibility of conflict with China.

Treasury Secretary Janet Yellen told House Speaker Nancy Pelosi in a letter Tuesday that the United States will likely begin to default on its loans shortly after Oct. 18 if Congress fails to raise or suspend the debt ceiling by then.

Why it matters: The U.S. has never defaulted on its financial obligations, and Yellen has previously warned that doing so would cause irreparable damage to the U.S. economy and global financial markets.

Former President Barack Obama in an interview with ABC's "Good Morning America" called the migrant crisis at the border in Del Rio, Texas, "heartbreaking" and a "painful reminder that we don't have this right yet."

Driving the news: Obama told Robin Roberts that comprehensive immigration reform is needed to fix "a system that, overall, is dysfunctional," ABC News reports.

Nashville Mayor John Cooper has quietly been forced to overhaul his staff in the last year following a series of departures, including three of his top advisers. Cooper spokesperson Andrea Fanta admitted staff departures have "created some stumbles" in appointing seats on city boards and commissions.

• Seven top officials have left Cooper's staff, including legal director Bob Cooper, finance director Kevin Crumbo and communications director Katie Lentile.

Austin could gain a congressional district under a newly proposed map, which adds one Central Texas seat and another in the Houston area.

Why it matters: Political clout hangs in the balance in a closely divided Congress.

• The draft is part of the redistricting process, the redrawing of political boundaries every 10 years to account for population growth.
• Both parties try to snag additional seats that can give them the advantage in future elections. But Republicans already control the levers of power in Texas, making it easier for them to dominate the process.

The Asian American Foundation (TAAF) is setting up a nationwide effort for national and local advocacy groups to work together as violence and hate crimes against Asians and Pacific Islanders persist. 

Why it matters: Stop AAPI Hate has tracked over 9,000 self-reported anti-AAPI incidents since March 2020 — half of which occurred in the first six months of this year alone.

• More federal and state attention has been directed toward Asian Americans, the fastest-growing racial group in America, since the pandemic-fueled attacks began.

The details: Through direct partnerships and funding, TAAF’s new Anti-Hate National Network aims to connect the foundation with organizations fighting the issue and bridge them to one another.

• The efforts begin with the Chinese American Service League in Chicago, the Asian American Federation in New York City and Asian Health Services in Oakland leading the network's first pilot “action centers."
• Each group, which also received a $500,000 grant from TAAF, will expand their existing anti-hate services and create new ones led by the foundation.

Separately, the foundation will also partner with GoFundMe to set up an AAPI Emergency Relief Fund for victims of hate crimes and their families, with an initial $500,000 investment.

What they’re saying: “What we've heard from the organizations … is that they want to be a part of a national network so they can learn from each other,” Sonal Shah, president of The Asian American Foundation, told Axios.

• TAAF's efforts will also allow the AAPI community to "speak with one voice on a national scale," Paul Luu, CEO of the Chinese American Service League, tells Axios.

The big picture: “We have this time, this moment, to use the horror of what's been going on in our communities to try to try to mobilize change,” longtime Asian American activist Helen Zia told Axios.

President Obama and Michelle Obama will preside over groundbreaking festivities for the Obama Presidential Center in Chicago on Tuesday.

• The Obamas, with Mayor Lori Lightfoot and Illinois Gov. J.B. Pritzker, will make brief remarks in Jackson Park. In a bow to COVID, the audience will be virtual.

The pandemic slowed the criminal justice system to a crawl in much of the U.S., and now an increase in violent crime is straining the system even further.

Why it matters: COVID-19 has caused backlogs in criminal cases across the U.S. to swell, forcing district attorneys to focus on the most violent offenses — and decline, delay or deal down a slew of other cases.

For the first time in his presidency, Joe Biden faces a trust deficit among Americans when it comes to COVID-19, according to the latest installment of the Axios/Ipsos Coronavirus Index.

Why it matters: The latest findings point to malaise more than fear. But malaise could spell real trouble for a Democratic president who built his support on a pledge to steer the nation out of crisis — and whose party's bare House and Senate majorities are on the line in 2022.

Southern California Gas and its parent company announced Monday they've agreed to pay up to $1.8 billion in settlement claims over the 2015 Aliso Canyon natural gas storage facility blowout.

Why it matters: Some 100,000 tons of methane, ethane and toxic chemicals poured into the air for 112 days, forcing over 8,000 families to evacuate from their Los Angeles-area homes and sickening many with headaches, nausea and nosebleeds, per the L.A. Times.

Simone Biles said she "should have quit way before" the Tokyo Olympic Games, per an interview with New York Magazine published Monday.

The big picture: The 24-year-old U.S. gymnastics great opened up to the magazine about the expectations on her in the leadup to the Tokyo Games and the impact of the abuse by former Olympic Team USA gymnastics doctor Larry Nassar, who's now serving a 40– to 175-year prison term for sexually abusing young athletes.

An Arizona judge ruled Monday that the state's ban on mask mandates in schools, and other measures put into the state budget by Republicans, are unconstitutional, the Arizona Republic reports.

Why it matters: The sweeping ruling voids a ban on vaccine requirements for public universities, community colleges and local governments, and strikes down some non-COVID-related measures like a ban on teaching critical race theory in classrooms and anti-fraud measures for ballots.

New York's undocumented residents affected by Hurricane Ida's remnants can from Monday apply for aid from the state's new $27 million relief fund.

Why it matters: This policy would help fill the gap left by FEMA as many undocumented immigrants are ineligible for FEMA relief regarding the storm, which caused widespread flooding across the northeastern U.S.

A group tied to prominent Democratic strategists is posing as a conservative outfit to try to drive a wedge between the Republican candidate for Virginia governor and his core voters, Axios has learned.

Why it matters: The state's gubernatorial race is expected to be tight and could be a national bellwether. As Republican candidate Glenn Youngkin's campaign hypes improving poll numbers, Democrats are trying to chip away at his support in GOP strongholds.

Treasury Secretary Janet Yellen and Commerce Secretary Gina Raimondo are delivering a pair of speeches Tuesday lobbying the business community to back the entirety of President Biden’s Build Back Better agenda, Axios has learned.

Why it matters: While business groups have endorsed the $1.2 trillion bipartisan infrastructure package, they're opposed to the concurrent $3.5 trillion budget reconciliation package — which would raise taxes on corporations.

House Democrats started Monday to coalesce around a deal to pass President Biden's signature Build Back Better infrastructure package, with progressive opposition weakening and House Speaker Nancy Pelosi (D-Calif.) seeming to de-link the biggest components of it.

What they're saying: “We can’t be ready to say, 'Until the Senate passes the [$3.5 trillion reconciliation] bill, we can’t do BIF,'" the speaker told House Democrats, using shorthand for the Bipartisan Infrastructure Framework. She indicated the House would vote on the $1.2 trillion bipartisan bill — focused on roads and bridges — on Thursday.

Texas Republicans propose adding seats in Austin and Houston — but no majority-Hispanic districts — in new congressional district maps released Monday.

Why it matters: Texas is a rapidly growing, diversifying and politically changing state. Census results mean it will get two additional House seats. While its changing demographics don't bode well for Republicans long term, they control how district lines are drawn for now.

Democrats are trying to attack Republican political candidates over abortion rights far from Texas — including libertarian states like New Hampshire and Nevada.

Why it matters: The strategy highlights the national resonance of the new Texas law banning abortions past six weeks. The Democratic Party sees an opening in next year's midterm elections to capitalize on voters’ opposition to it.