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Paulson withdraws from Treasury secretary contention

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John Paulson, the billionaire financier, said Tuesday he was withdrawing his name from contention to be President-elect Donald Trump’s next Treasury secretary.

“Although various media outlets have mentioned me as a candidate for Secretary of the Treasury, my complex financial obligations would prevent me from holding an official position in President Trump’s administration at this time,” Paulson said in a statement.

The veteran investor and close Trump ally said he planned to “remain actively involved with the President’s economic team and helping in the implementation of President Trump’s outstanding policy proposals.”

The statement was earlier reported by The Wall Street Journal.

Paulson was among several major Wall Street figures that Trump has been weighing for Treasury, including billionaire investor Scott Bessent, who has been serving as a key economic adviser to Trump.

Paulson, a hedge fund manager who famously made billions of dollars betting on the housing market collapse before the 2008 financial crisis, was an early Wall Street supporter of Trump back in 2016.

In his statement Tuesday, Paulson said he was “ecstatic that President Trump will be back in office.” Trump “is off to a fast start with his appointments, and his policies will have an immensely positive impact on all Americans,” he said.

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Congress

More Dems join with Republicans to pass fentanyl crackdown bill

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The Republican-led House passed legislation Thursday with significant Democratic support that would lead to harsher sentences for fentanyl traffickers, leaving it with a good chance of becoming law.

The so-called HALT Fentanyl Act got more Democrats on board this year, with 98 voting in favor, compared with the 74 Democrats who backed a similar version when it passed the House last Congress. The bill didn’t receive a Senate vote at that time amid Democratic concerns it leaned too heavily on law enforcement and would result in more mass incarcerations — a worry for some Democrats this time around too.

But now, with Republicans controlling the Senate and enough Democratic co-sponsors in that chamber to clear the filibuster threshold, the bill has a strong chance of being enacted. It sailed through the House with a 312-108 vote.

The swift passage in the House so early in the new year underscores that Republicans see responding to the opioid epidemic as both a top policy priority and a political messaging winner, framing the issue in the context of calls to bolster border security and arguing Democrats haven’t done enough to stop it.

At the same time, the growing bipartisan support for the legislation signals a growing willingness among Democrats to lean into law enforcement after a bruising election loss that left them out of power in Washington.

The measure would permanently classify street versions of fentanyl, the killer synthetic opioid, as Schedule I substances, in recognition of the seriousness of the product’s addictive and deadly qualities. It also would bolster efforts to research fentanyl analogs.

Fentanyl-related substances are currently considered a Schedule I substance on a temporary basis until March 31, putting pressure on lawmakers to act quickly to make that designation permanent. Fentanyl itself, which has medicinal uses, is a Schedule II drug.

Supporters of the legislation have argued it would give law enforcement more power to crack down on drug traffickers, since it would result in harsher sentences for fentanyl traffickers. Many Democrats, in addition to their concerns that the bill will exacerbate inequities in the criminal justice system, are calling for an approach that puts more of an emphasis on public health.

“Rescheduling fentanyl as a Schedule I substance in and of itself does not prevent one death,” said Rep. Diana DeGette of Colorado, the top Democrat on the House Energy and Commerce Committee’s health subcommittee, said at a Rules Committee hearing this week. “The HALT Fentanyl Act does nothing to provide law enforcement or public health agencies with additional resources to detect and intercept illicit drugs at legal ports of entry, nor does it provide resources for prevention, treatment or recovery efforts.”

Rep. Morgan Griffith (R-Va.), a senior member of the Energy and Commerce Committee and the bill’s sponsor, has said the HALT Fentanyl Act is just one part of a broader approach needed to take on the opioid crisis, including tariffs on imports from China, which provides many of the chemicals used to produce fentanyl.

Democrats also expressed frustration during floor debate with a Trump administration federal funding freeze that has thrown health care providers into chaos.

“There are still real concerns about federal funding not getting out the door to help us combat the drug overdose epidemic,” Energy and Commerce Committee ranking member Frank Pallone (D-N.J.) said.

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Johnson aims to announce GOP agenda framework on Friday, including permanent tax cuts

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Speaker Mike Johnson said House Republicans are aiming to announce an overarching framework on their party-line agenda on Friday morning. It would include a permanent extension of the 2017 tax cuts, according to two people who were in a meeting between House Republicans and President Donald Trump Thursday afternoon.

“We’re going to meet again tonight to finish up some final details. I think we’ll be able to make some announcements probably by tomorrow,” Johnson told reporters after a meeting between House Republicans and President Donald Trump. “The idea would be to get the Budget Committee working potentially as early as early next week, maybe Tuesday, for a mark-up of the budget resolution.”

Even hard-liners in the Trump meeting appeared generally onboard, though some differences remain. The bill would aim to address major GOP priorities on taxes, the border, energy, defense and more.

Johnson said his message to Republican senators, who are moving toward a vote on their own resolution next week, is that “we are moving as quickly and expeditiously as possible.” The Senate version would tackle border, energy and defense in a first bill, but push off taxes until later.

Rep. Kevin Hern (R-Okla.) said the same group of Republicans at the Trump meeting, which included leadership and various other lawmakers heavily involved in the budget reconciliation process, would meet again later Thursday.

Mia McCarthy contributed to this report.

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Committee punts on Kash Patel vote as Democrats keep up the pressure

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Democrats took advantage of the rules of the Senate Judiciary Committee on Thursday to delay consideration of Kash Patel’s nomination to lead the FBI — but broke some recent precedent in the process.

While lawmakers typically do a one-week punt on Judiciary Committee votes for an variety of reasons — from opposing a bill to nominees — rarely if ever does the panel meet in person to formally approve the delay. Democrats’ vehement opposition to confirming Patel prompted such an in-person gathering.

Democrats had requested a second hearing with Patel to grill him over the recent leadership shakeup at the FBI. They view the staunch Trump loyalist as someone who is prepared to use the pulpit of the FBI to go after political adversaries.

Senate Judiciary Chair Chuck Grassley (R-Iowa) had denied Democrats’ pleas, describing on Thursday the meeting as breaking with the panel’s norms. He has said he intends to hold Patel’s committee vote as early as next week.

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