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▪ Bracing for the next shutdown showdown

▪ FBI pushes back on Tucker

▪ Swalwell responds to criminal referral

▪ AOC’s stock rises amid Schumer backlash

© The Associated Press | J. Scott Applewhite

Lawmakers in both parties are grappling with last-minute changes to the bill that reopened the government this week, with some looking to revisit the issues that are now law.

One such provision in the legislative package allows senators to sue for $500,000 if their phone records were seized without being notified. Former special counsel Jack Smith sought the records of eight senators and one House member as part of his probe into the Jan. 6, 2021, Capitol riot.

Another measure bans most hemp-derived THC products, with infused drinks and edibles likely disappearing from store shelves in the next year barring a legislative reversal.

Much of Washington appeared caught off guard when finding out the measures were included in the bill aimed at ending the longest shutdown in U.S. history.

Bipartisan House lawmakers are slamming the first GOP litigation measure as "self-serving" and looking to undo it, while the hemp industry is scrambling to respond to the second.

Speaker Mike Johnson (R-La.) said House Republicans are introducing stand-alone legislation to repeal the lawsuit provision and it will be on the “fast track suspension calendar” for next week.

He said he was surprised to see the provision added to the Senate’s bill “at the last moment” and was “very angry.”

“I did not appreciate that, nor did most of the House members,” Johnson told reporters Wednesday. “Many of them are very angry about that.”

“I think that was way out of line. I don’t think that was the smart thing to do. I don’t think that was the right thing to do,” he added.

A two-thirds vote is required in the House to pass legislation under a suspension of the rules, but the bill is expected to receive bipartisan support as both Democrats and hard-line conservatives slammed the provision as wrong and “blatantly corrupt.”

After the Senate added the measure and sent the government funding bill to the lower chamber, a few House Republicans expressed opposition to the provision but said reopening the government was the priority. If the House had nixed the provision, it would have required the bill to go back to the Senate and extended the shutdown further.

Johnson said he raised the issue with Senate Majority Leader John Thune (R-S.D.), who he said voiced regret over the way the provision was handled. Johnson said he didn’t ask Thune for any commitment to repeal it but expects his Senate colleagues to do so.

Other House Republicans echoed Johnson’s sentiment.

“There’s going to be a lot of people, if they look and understand this, are going to see it as self-serving, self-dealing kind of stuff,” Rep. Chip Roy (R-Texas) said.

Another relatively low-profile provision has stirred significant backlash among some businesses. The hemp industry has warned of cataclysmic effects on the $28 billion retail market from a measure in the funding bill that criminalizes many hemp products first legalized in the 2018 farm bill.

The provision “prevents the unregulated sale of intoxicating hemp-based or hemp-derived products, including Delta-8, from being sold online, in gas stations, and corner stores, while preserving non-intoxicating CBD and industrial hemp products,” according to a Senate Appropriations Committee summary.

Kentucky Sen. Rand Paul (R) held up the legislation in the Senate over his objection to the provision. He proposed an amendment to eliminate the provision, but it failed, with Texas Sen. Ted Cruz being the only other Republican who supported Paul’s effort.

Paul warned on the Senate floor that the provision would have harmful effects on the economy, particularly for farmers.

“The bill, as it now stands, overrides the regulatory frameworks of several states, cancels the collective decisions of hemp consumers and destroys the livelihoods of hemp farmers,” Paul said ahead of the vote. “And it couldn’t come at a worse time for America’s farmers. Times are tough for our farmers.”

Hemp industry representatives spent months campaigning against the possible inclusion of the language in the government funding bill but were caught by surprise when the text was unveiled on Sunday, The Hill’s Nathaniel Weixel and Joseph Choi report.

The provision’s inclusion has now sent the hemp industry scrambling to stave off what representatives say could be an extinction-level event.

These products aren’t immediately illegal, as there is a one-year implementation period. The Hemp Industry & Farmers of America, a coalition of hemp industry advocates, vowed that the fight isn’t over, calling on Congress to repeal the provision.

▪ The Hill: Sen. Lindsey Graham (R-S.C.) says he’ll sue over seized records.

▪ LEX 18: Kentucky GOP Sens. Mitch McConnell, Paul feud over hemp ban.

© The Associated Press | Rahmat Gul

SHUTDOWN SEQUEL? The longest shutdown in U.S. history may have finally ended, but the prospect of another one isn’t far off the horizon.

The funding package covered several parts of the federal government, including the Department of Agriculture, military construction, the Department of Veterans Affairs and the legislative branch, through September. But the rest of the government is only funded until Jan. 30.

Although shutdown fatigue was setting in with many lawmakers as the more than month-long funding lapse dragged on, another showdown may be around the corner, The Hill’s Mike Lillis reports.

Most Democrats in Congress are furious after eight of their members in the Senate and a half-dozen in the House bucked the party to vote for the government funding bill. While more progressive lawmakers have lambasted the move, the criticism isn't limited to the party's liberal wing.

Whether Democrats push for another shutdown could depend on how the GOP handles an upcoming vote on extending health care tax credits under the Affordable Care Act that are set to expire at the end of the year.

As part of the deal for the eight Senate Democrats to support the funding bill, Thune promised to hold a vote on extending the subsidies in December. But the pledge doesn’t ensure that an extension will pass.

The Hill’s Alexander Bolton reports that Republicans are deeply divided over how to handle rising health insurance premiums with the shutdown over. Negotiations between Sen. Jeanne Shaheen (D-N.H.), who voted for the funding deal, and 10 Senate Republicans gained momentum last week, but many GOP senators are opposed to extending the subsidies.

And even if it passes in the Senate, Johnson hasn’t made any such promise to hold a vote in the House. That leaves the chances of the subsidies being extended up in the air at best.

And that may be key to whether Democrats feel the need to pressure Republicans in January over their willingness to support another funding measure without relief for health care costs.

“We have to,” Rep. Juan Vargas (D-Calif.) told The Hill. “And this time, I hope the senators have a little more courage to hold the line.”

Meanwhile, normal operations are just starting to resume after the end of the record 43-day shutdown.

Federal agencies directed workers to return to work on Thursday, with many reporting to work for the first time in more than a month. Agriculture Secretary Brooke Rollins said full benefits for the Supplemental Nutrition Assistance Program, which more than 40 million Americans rely on to afford groceries, would be back in place by Monday.

A protracted legal battle had been taking place as funding for the program was running out this month.

Meanwhile, nervous travelers will be keenly watching for flights to return to normal, with the Thanksgiving holiday less than two weeks away.

Delta Air Lines CEO Ed Bastian said the air travel system should return to normal by this weekend with air traffic controllers once again getting paid.

More than 1,000 flights in the U.S. were canceled Thursday, the first full day after the shutdown ended, according to flight-tracking site FlightAware, showing the lingering effects of the funding lapse. 

The federal government has frozen its limit on flight capacity at 40 major airports nationwide, with flight cuts staying at 6 percent on Thursday.

▪ The Hill: Senate panel to probe effect of shutdown on aviation safety.

▪ CNN: The shutdown is over, but things aren’t back to normal.

SWALWELL IN SIGHT: The Federal Housing Finance Agency has reportedly issued another criminal referral of a Democrat to the Department of Justice (DOJ) for potential prosecution.

NBC News first reported that the agency’s director, Bill Pulte, issued a criminal referral for Rep. Eric Swalwell (D-Calif.), alleging the congressman may have made false or misleading statements in loan documents. Sources told the outlet that the referral concerns several million dollars in loans and refinancing related to Swalwell declaring his primary residence in Washington, D.C.

Swalwell blasted the reported referral, arguing that he’s just the latest of Trump’s political opponents to potentially be facing charges.

“As the most vocal critic of Donald Trump over the last decade and as the only person who still has a surviving lawsuit against him, the only thing I am surprised about is that it took him this long to come after me,” Swalwell said in a statement.

The California Democrat served on the House Intelligence Committee as the panel investigated allegations of Russian election interference and potential ties to the Trump campaign in 2016 and he’s been a top antagonist to the president.

Swalwell noted other people who have found themselves in a similar situation to his, including Sen. Adam Schiff (D-Calif.) and Lisa Cook, a member of the Federal Reserve board of governors whom Trump has sought to fire. Pulte has made criminal referrals for both of them.

New York Attorney General Letitia James (D) is facing criminal charges tied to mortgage fraud allegations that Pulte referred to the DOJ.

The reported referral against Swalwell came as the New York AG and former FBI Director James Comey, who is facing charges of obstruction and making false statements to Congress, challenged the validity of their charges and the appointment of the interim U.S. attorney who brought them, Lindsey Halligan.

James and Comey have been charged in separate cases, but both took part in the joint hearing. They argued Halligan was improperly appointed as U.S. attorney and shouldn’t have been able to bring the charges initially.

The federal judge overseeing the hearing seemed skeptical of Halligan’s appointment, raising doubts about the cases’ future, The Hill’s Ella Lee reports. A ruling is expected by Thanksgiving.

▪ MSNBC: Swalwell eyeing campaign for California governor.

▪ ABC News: Watchdog group files bar complaint against Halligan.

'TRY TO PUT IT OUT OF MY HEAD': Vice President Vance told Fox News host Sean Hannity that he would have a conversation with the president about possibly running in the 2028 presidential election following next year's midterms.

"Whenever I think about that, I try to put it out of my head and remind myself the American people elected me to do a job right now, and my job is to do it," Vance said. 

The vice president maintained he was focused on "the now" and also denied a rivalry with Secretary of State Marco Rubio, who is also considered a possible 2028 contender.

FBI PUSHBACK: The FBI denied conservative commentator Tucker Carlson's allegation that the agency lied about the man who attempted to assassinate Trump last year in Pennsylvania, Thomas Matthew Crooks.

“The FBI told us Thomas Crooks tried to kill Donald Trump last summer but somehow had no online footprint. The FBI lied, and we can prove it because we have his posts. The question is why?" Carlson said in a post on social platform X.

The FBI's newly launched "rapid response" account quickly pushed back, saying the agency has "never said Thomas Crooks had no online footprint. Ever."

The account said in an earlier post on Thursday that it was set up to oppose "an avalanche of lies, smears, and falsehoods from the fake news and others seeking to undermine our work and national security."

PENTAGON OPERATION: Defense Secretary Pete Hegseth debuted an operation called "Southern Spear" on Thursday to quash what he called "narco-terrorists" from killing Americans.

His announcement came shortly after the 20th strike against an alleged drug-trafficking boat took place in the Caribbean Sea as escalations have continued to rise with Venezuela. Hegseth, Joint Chiefs of Staff Chair Dan Caine and other senior military leaders reportedly briefed Trump at the White House on Wednesday on military options in the region, including possibly land strikes in Venezuela.

Meanwhile, Venezuelan President Nicolás Maduro told CNN that the people of the U.S. and Venezuela should unite to ensure peace in the region. He called for no more "endless" or "unjust" wars, pointing to past military action in countries like Libya and Afghanistan.

He said in response to a question from CNN that his message to Trump is "peace."

UNEMPLOYMENT UNCERTAINTY: The federal government is unable to determine the unemployment rate during the month of October because of the government shutdown, National Economic Council Director Kevin Hassett said Thursday.

Hassett told reporters that the government couldn’t complete household surveys used to determine unemployment data but could calculate the “payroll side.”

“So, we’ll get sort of half a jobs report,” he said. “Most everything else, I think, we’ll be able to concoct the correct number after we look back, but we will never know what the unemployment rate was in October, because there wasn’t a household survey with that.”

A jobs report hasn’t been released since the August one that came out on Sept. 5, weeks before the shutdown began. Hassett said the September jobs report was completed before the shutdown began and will be released in the coming days.

▪ Forbes: When and what to expect from delayed economic reports.

© The Associated Press | Angelina Katsanis

AOC STOCK RISING: Calls for Rep. Alexandria Ocasio-Cortez (D-N.Y.) to consider competing for Senate Minority Leader Chuck Schumer’s (D-N.Y.) Senate seat in 2028 have only risen after the latest round of criticism lobbed at the leader, The Hill’s Amie Parnes reports.

Many Democrats believe Ocasio-Cortez could defeat Schumer in a contested primary, given the frustration with the party’s leadership, while others expect the soon-to-be 75-year-old won’t seek another term.

Although Schumer voted against the government funding bill, he’s been lambasted by many Democrats who are furious that eight members of his caucus defected and backed the measure under his watch.

Some Democrats told Parnes the shutdown situation demonstrates why it's time to move on to someone like Ocasio-Cortez.

“She’s the future. He’s the past,” one Democratic donor said.

“When it comes to having a finger on the pulse of New York, she is the new Chuck,” a strategist said.

▪ The Intercept: Insurgent Dem candidates running on shutdown, Schumer betrayal.

▪ Politico: "The father of the Sunday presser fades from the NY scene.”

NEVADA CASE REVIVED: The Nevada Supreme Court has revived a case against a half-dozen "fake electors" who claimed Trump won the state in the 2020 presidential election.

A dispute over the right venue for the case had paused it for more than a year, but the court sided with Nevada Attorney General Aaron Ford (D) that it should be filed in Clark County because the defendants allegedly mailed their false election certificates to a federal judge serving there.

That will allow the case to go forward against the defendants, who have all pleaded not guilty to felony charges of offering a false instrument for filing and uttering a forged document.

© The Associated Press | Jae C. Hong

CHENEY FUNERAL: Former Vice President Dick Cheney’s funeral will be held at Washington National Cathedral next week, on Nov. 20, the cathedral’s dean announced Thursday.

A list of speakers includes former President George W. Bush, under whom Cheney served as vice president, and former Rep. Liz Cheney (R-Wyo.), his daughter. Other speakers include his former press secretary and legislative assistant Pete Williams, a former NBC News correspondent, and his physician, Dr. Jonathan Reiner.

But questions remain as to whether Trump or anyone from the administration will attend. The president and former vice president feuded in the last few years of Cheney’s life, particularly since the Jan. 6 attack.

The administration lowered flags to half-staff in accordance with tradition following Cheney's death at age 84 earlier this month, but Trump hasn’t yet directly commented on his passing.

Cheney died from complications of pneumonia and cardiac and vascular disease.

▪ USA Today: Vice President Vance swipes at Cheney while discussing his job.

© The Associated Press | Matt Slocum

And finally … 👏👏👏 Congrats to this week’s Morning Report quiz winners! Hold on to that knowledge about the history of the penny — that can stick around to amaze your friends and family even if the coin itself is eventually relegated to being a collector’s item.

🧩 Here’s who went 4/4: Gary Kalian, Richard Baznik, Harry Strulovici, Chuck Schoenenberger, Carmine Petracca, Linda Field, Mark Williamson, Tom Chabot, Bill Bennett, Stanton Kirk, Peter Sprofera, Bill Moore, Bonnie Derby, Rick Schmidtke, Jenessa Wagner, Lori Benso, Dennis Barksdale, Lou Tisler, David Tapley, Mark Roeddiger, Stewart Baker, Robert Bradley, Bob Graef, John Trombetti, Gary Sensenig, Marcia Gatlin, Jess Elger, Ned Sauthoff, Savannah Petracca and Pam Manges.

The current cost of producing a penny is 3.69 cents per coin, meaning the cost is nearly four times its value.

The penny was briefly made with steel for one year, in 1943, as a result of shortages of copper needed during World War II. The coin was mostly steel with a zinc coating. But a handful of incredibly rare copper 1943 pennies and steel 1944 pennies were produced in error, making them a high-value item for collectors.

The pennies produced before the ones with the Lincoln Memorial on the reverse side were known as “wheat pennies.” This is because the reverse side featured two stalks of wheat, one on each side.

The U.S. Mint produced its first pennies in 1793, a year after President George Washington signed the Coinage Act of 1792, establishing the mint and federal regulation of money.

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