Trouble viewing this email?  View in web browser ›

The Wall Street Journal. The Wall Street Journal.
Capital Journal. Capital Journal.
Capital Journal

Good morning from the WSJ Washington bureau. We produce this newsletter each weekday to deliver exclusive insights and analysis from our reporting team in Washington. Sign up.

 

What We're Watching

White House: President Biden speaks with NATO’s eastern flank allies, who will be meeting in a virtual summit of the Bucharest Nine, at 10:30 a.m. ET, and delivers remarks on the economy at 1:15 p.m. 

Colonial Pipeline: The ransomware attack that forced the closure of the largest U.S. fuel pipeline this weekend exposed the threat that cybercrime poses to the nation’s aging energy infrastructure.

Election Lawsuits: Courts are weighing whether some of the failed legal challenges to the 2020 presidential election were frivolous or improper and warrant punishment for the lawyers who filed them. 

 
Share this email with a friend.
Forward ›
Forwarded this email by a friend?
Sign Up Here ›
 
Advertisement
LEAVE THIS BOX EMPTY
 

Biden Administration

President Biden toured a water plant in New Orleans on Thursday as he sought to drum up support for his $2.3 trillion infrastructure plan. PHOTO: JONATHAN ERNST/REUTERS

President Biden faces a crucial test this week of whether he can find any common ground with Republicans, report Andrew Restuccia and Andrew Duehren, as he pushes trillions in spending on infrastructure, child care and education. On Wednesday, Mr. Biden will hold his first formal meeting with top congressional leaders since taking office.

  • House Speaker Nancy Pelosi has set July 4 as an informal target for passing infrastructure legislation in the House, though some Democratic aides expect that timeline to slip.
  • Slower-than-expected job growth in April and recent concerns about inflation have hardened Republican opposition to Mr. Biden’s proposals.

The administration plans to name Thea Lee to head the Labor Department’s international affairs division, Bob Davis reports. She most recently served as president of the Economic Policy Institute, a liberal think tank that often critiques free trade policies.

 

Inside Look

State Redistricting Power Gives Republicans Competitive Advantage

By Jerry Seib

When determining control of the House, how state legislatures draw new districts may be more important than the shifting of seats between states, due to new national census data. And Republicans hold an advantage in the power to draw districts.

Photo illustration: Todd Johnson

 

Business

Pentagon officials are considering pulling the plug on the JEDI cloud-computing project, which faces continuing criticism from lawmakers, reports John D. McKinnon. The Joint Enterprise Defense Infrastructure contract was awarded to Microsoft in 2019 over Amazon, which has contested the award in court ever since.

Federal lobbying on cannabis rebounded in the first quarter. Cannabis companies, trade organizations and banks are looking to shape marijuana-industry ground rules, sending in the lobbyists as more states legalize and Congress weighs measures to further legitimize its use, reports Julie Bykowicz. Marquee names from both major parties have flocked to the marijuana influence industry.

  • AT&T, Verizon and T-Mobile are lobbying to delay a new regulation on robocalls aimed at overseas scammers who make them, citing concerns that the rule could end up blocking legitimate calls.
 

Coronavirus

158,366,256 cases world-wide and 3,294,009 deaths.

32,707,993 cases in the U.S. and 581,755 deaths.

Source: Johns Hopkins University, as of 7:30 a.m. ET.

Biden administration officials said Sunday that the U.S. is entering a new phase of the pandemic, and signaled that the federal government will further relax mask-wearing recommendations as more people get vaccine shots, reports Andrew Restuccia.

  • The 10-day halt in administering Johnson & Johnson’s Covid-19 vaccine has made it harder to inoculate the hard-to-reach and hesitant, health officials said.
  • 🦠 Latest updates: The seven-day moving average of new U.S. cases remained below the 14-day average, where it has been since April 17, indicating cases are declining.
 

Economy

Falls Park, along the Reedy River, in downtown Greenville, S.C./Clark Hodgin for The Wall Street Journal

The pandemic is accelerating growth in midsize cities, positioning them to lead the charge in the nation’s economic rebound, reports Justin Baer. Rising stars such as Greenville, S.C., Des Moines, Iowa, and Provo, Utah, had been quietly building out vibrant economies in the shadow of bigger cities even before the pandemic. Now, they have drawn new workers and businesses with their mix of industries and easier lifestyles.

Policy makers on Sunday debated the cause of a shortage of workers threatening to restrain the pace of growth. Republicans blame enhanced unemployment benefits, while Democrats point to child-care and chip shortages, reports Eric Morath.

  • Americans accustomed to years of low inflation are beginning to pay sharply higher prices for goods and services.
  • An unprecedented stimulus led by the Federal Reserve is fueling investor euphoria. What happens when it ends?
  • Economists disagree over whether herd immunity matters for the world’s economic recovery from the Covid-19 pandemic.
 

Political Intelligence

New Analysis Shows How Racial Groups Defied Expectations in 2020 Election

By Aaron Zitner

Political analysts are still sorting through data from the 2020 election to understand the shift among minority voters toward then-President Donald Trump. A new analysis from Catalist, a firm that provides voter data to Democratic candidates and liberal causes, gives a detailed picture of the magnitude of the shift, as well as some suggestions about why it happened.

Catalist, in a report released Monday, finds a swing of 8 percentage points among Latino voters toward Mr. Trump compared with his support in 2016, as well as a shift of 3 points among Black voters and 1 point among Asian-American and Pacific Islander voters.

At the same time, support among white voters for Mr. Trump fell by 3 percentage points, compared with 2016. That included a 1-point decline among white voters who do not have a four-year college degree and who, as a group, formed by far the largest part of Mr. Trump’s coalition. (The shifts are measured as the change in the two-party vote, meaning a candidate’s share among people who picked a Democrat or a Republican.)

The findings underscore one of the unexpected features of the 2020 election: Rising diversity has been widely thought to be a force helping Democratic candidates, and yet the most diverse electorate in American history produced an unexpectedly close outcome. Part of the explanation appears to be that white voters as a group shifted slightly Democratic in their outlook, even while racial and ethnic minorities shifted Republican.

The change among some minority groups had been widely noted after the election, due in part to the especially large swing toward Mr. Trump in some Latino counties in Florida and Texas. But an accurate picture of the shift could not be determined until states updated their voting records, which include every voter’s history of participation. While those files record only whether a person voted—not who they supported—Catalist brings sophisticated analytical skills to the question of how each party’s level of support changed, and its report has been eagerly awaited, particularly among Democratic strategists.

The report likely will fuel Republican hopes that the party can build a multiracial coalition, as well as Democratic hopes of blunting the GOP’s inroads among white, working-class voters. It also includes cautions for both parties.

With 2020 turnout breaking modern records, a big increase among Latino voters combined with the shift toward Mr. Trump to produce a meaningful erosion of Democratic support. President Biden won among Latino voters by 3.9 million votes, narrower than the margin of 4.7 million votes that went to Democrat Hillary Clinton in 2016. That finding is sure to trouble Democrats.

The same trend was not true among Black voters. Because 90% of Black voters backed Mr. Biden, Catalist concluded, the increase in turnout produced a net gain of Democratic votes in important battleground states, despite the slight erosion of Democratic support. That finding suggests that it remains hard for Republicans to break the Democrats’ strong bond with Black voters.

In Georgia, Mr. Biden won nearly 1.3 million more votes among Black voters than Mr. Trump, a margin that was about 200,000 votes larger than in 2016. The gain among Black voters was crucial, given that Mr. Biden won the state by fewer than 12,000 votes, Catalist said. The story was similar in Arizona, where the Democratic gain among Black voters was larger than the party’s statewide margin of victory.

The report, written by chief scientist Yair Ghitza and lead research scientist Jonathan Robinson, reinforces the conclusion of other analysts that a mix of factors prompted the swings among minority voters. Some voters who backed the Democrat in 2016 likely changed their party preference to Mr. Trump. At the same time, Republicans may have drawn out the larger number of minority voters who vote occasionally or who sat out past elections, reshaping the electorate. The relative weight of those factors is a subject for further exploration among strategists and researchers at many firms.

Write to Aaron Zitner at aaron.zitner@wsj.com.

 

What We're Reading

  • Republicans' internal feuding may make it more difficult for President Biden to get bipartisan support for his agenda. (ABC News)
  • What happens if Republicans simply refuse to concede election victories to Democrats? (Washington Monthly)
  • Amid tensions with China, the Philippines plans to turn an island in the South China Sea into a military hub. (Bloomberg News)
 

About Us

This newsletter is a production of the WSJ Washington bureau. Our newsletter editors are Kate Milani, Troy McCullough, James Graff, and Toula Vlahou. Send feedback to capitaljournal@wsj.com. You can follow politics coverage on our Politics page and at @wsjpolitics on Twitter.

 
Desktop, tablet and mobile. Desktop, tablet and mobile.
Access WSJ‌.com and our mobile apps. Subscribe
Apple app store icon. Google app store icon.
Unsubscribe   |    Newsletters & Alerts   |    Contact Us   |    Privacy Notice   |    Cookie Notice
Dow Jones & Company, Inc. 4300 U.S. Ro‌ute 1 No‌rth Monm‌outh Junc‌tion, N‌J 088‌52
You are currently subscribed as [email address suppressed]. For further assistance, please contact Customer Service at sup‌port@wsj.com or 1-80‌0-JOURNAL.
Copyright 2021 Dow Jones & Company, Inc.   |   All Rights Reserved.
Unsubscribe