POLITICO NIGHTLY: The politics of a virus hot spot

BY RENUKA RAYASAM

Presented by

With help from Myah Ward

BREAKING — The United States is set to top 3 million coronavirus cases, a number that would have seemed unfathomable just three months ago, according to POLITICO’s Covid Tracker.

SPRINTING TO THE FINISH — Follow the latest twists and turns in the race for the vaccine with POLITICO's Vaccine hub, including Elizabeth Ralph's piece on why it's dangerous to put so much stock in a vaccine.

AROUND THE NATION

PHOENIX RISING — President Donald Trump visited Arizona just as coronavirus cases were exploding, telling a Phoenix-area church the virus was going away and testing was improving. Vice President Mike Pence visited Arizona a week later, saying help was on the way.

Phoenix Mayor Kate Gallego, meanwhile, is living a different reality: Her desert city is one of the hottest of the coronavirus hot spots in the country and she’s not only coping with hospital capacity issues , she’s juggling partisan politics as a top Democrat in a swing state that Trump desperately needs to win while Democrats see a chance for an Arizona victory.

Gallego said Phoenix is still suffering from many of the same issues that have dogged the country for months: a lack of testing and protective equipment. Your host spoke with Gallego about why Phoenix has become a new virus epicenter, whether she welcomes more White House visits and why she didn’t cite Trump’s rally attendees for violating a city mask ordinance. This conversation has been edited.

How are Phoenix hospitals handling the surge in Covid patients?

I am deeply concerned about the capacity of our health care system. We're bringing people in from out of state and trying to find every available resource. People who were scheduled to have kidney transplants and had a kidney in one case were told that they could no longer move forward. There’s surgeries that have been classified as not essential, but what I would consider lifesaving, such as the kidney transplant or a cancer procedure, that aren't moving forward.

We do have concerns about protective equipment. It's not always been the same pieces. Early on it was masks and gowns, but it seems like we still don't have the complete supply chain that we need. The doctors and nurses are exhausted. It looks like the next two weeks will be even worse than the previous two.

Did the White House respond to your request for help on testing?

The White House did see my interview on ABC and reached out to see if they could be more helpful. Perhaps we can get that additional support. Our issue isn't funding. The city did receive coronavirus relief funds. What we're asking for is physical federal resources: more tests, more reagents, more safety equipment, more people. I would say, they said they would look into it.

We have a huge challenge with testing. People waited 13 hours a few weeks ago and now it’s 8 hours. That's not success. I would love to see a national testing program with leadership from our federal government. It’s a solvable problem.

If masks are so important, why did you announce that you wouldn’t issue citations at Trump’s rally a couple of weeks ago?

We had not issued any citations and felt it was too political to begin issuing citations at a presidential event. I want to send the message that this is a common-sense public health tool. It's not in any way about partisan politics. Many Republican mayors in the greater Phoenix metro area have implemented masks requirements. I hope people will see this is not an idea associated with a single political party. It seemed citing the president of the United States would encourage division, and that's exactly the opposite of what I'm hoping to do.

Would you welcome any more White House visits to the Phoenix area?

If they bring more test kits, I'm welcoming.

Welcome to POLITICO Nightly: Coronavirus Special Edition. Hello from Jonesboro, Ga., where I will be hunkered down with my parents for the next few weeks, though I’ve been largely ignored while the grandkids bask in their affection. Reach out with tips: rrayasam@politico.com or on Twitter at @renurayasam.

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America’s biopharmaceutical companies are sharing manufacturing capabilities with each other so that once a treatment or vaccine is ready, they can get it to millions of people fast. And there’s no slowing down. America’s biopharmaceutical companies will continue working day and night until they beat coronavirus. More.

FROM THE EDUCATION DESK

BACK TO SCHOOL FIGHT — The Trump administration has chosen a side in the debate over reopening schools, forcefully pushing school systems to completely reopen this fall, Nightly’s Myah Ward writes. On a call with governors today, Education Secretary Betsy DeVos blasted districts with partial reopening plans and said schools need to be fully operational this fall. And during a day of programming at the White House, HHS Secretary Alex Azar said “nobody should hide behind our CDC’s guidance as a way to not reopen schools.”

Later in the afternoon, Trump insisted that “everybody” wants schools to reopen.

“The moms want it. The dads want it. The kids want it. It’s time to do it,” the president said before touting the economy, mortality rates and testing in the U.S.

“We’re very much going to put pressure on governors and everybody else to open the schools,” the president said.

The president isn’t the only one with an opinion . Pediatricians say schools should try to bring kids back to the classroom. But more than 50 percent of U.S. voters say they’re somewhat uncomfortable or very uncomfortable with K-12 schools reopening next month, according to a recent POLITICO/ Morning Consult poll. And local school districts are struggling with everything from technology to how to create a socially distanced classroom.

Jonathan Plucker, a professor in the Johns Hopkins School of Education, sums up the whiplash many teachers and parents have over schools. “From an economic point of view, from a student development point of view, we do need to get these students in ASAP. And then I'll read five reports saying be very careful because the virus is mutating, and it's spreading like wildfire in some of these communities, and how younger people are getting it at much higher rates. And I think, ‘Oh my god we cannot go back at all.’”

Still, Plucker said students are facing Covid-19-induced trauma and racial and economic disparities that add to what he says is the “biggest education challenge we’ve seen in our lifetimes.” Without in-person instruction, Plucker worries that some students will continue to fall behind.

The impact on younger students, like kindergartners and first-graders — particularly those from low-income families — could be “catastrophic,” he said.

He is also concerned that older teachers won’t return, or that others could fall ill to the virus. “We don't have enough highly qualified teachers as it is, so how do we have this crazy level of bench strength that we're going to need if older adults start getting sick in schools,” he said.

Annette C. Anderson, deputy director of JHU’s Center for Safe and Healthy Schools, said school districts need to accept that “normal” might not be attainable this fall and that leaders need to discuss facility capacity, student numbers, and everything from lunchtime to what an online debate club could look like for students. She said policymakers need to act fast to address what she calls the “digital canyon” across the U.S. by getting “devices and broadband and Wi-Fi into the home of every pre-K to 12 student.”

These discussions are happening. Some districts are suggesting hybrid in-person and remote models. Some are looking to prioritize keeping younger kids in the classroom, while keeping older students at home. But school administrators are facing mounting pressure to make decisions, and the clock is ticking.

ASK THE AUDIENCE

Nightly asks you: How do you think schools and day cares should reopen this fall, if at all? Let us know in our form, and we’ll include select answers in Friday’s edition.

HAPPENING TOMORROW AT 12 PM EDT - HOW IS MAYOR FRANCIS SUAREZ APPROACHING THE COVID-19 SPIKE IN MIAMI? A rapid spike in coronavirus cases has forced Miami to scale back reopening plans. What will come next? Join POLITICO Nightly author Renuka Rayasam and Miami Mayor Francis Suarez for a conversation about the next steps, including plans to handle the virus' resurgence, measures that will take shape when schools reopen, and how a city reliant on tourism can recover from the devastation wrought by the pandemic. REGISTER HERE.

FIRST IN NIGHTLY

THE PRICE OF PRICE HIKES — Drugmakers raised the price of hundreds of medicines during the coronavirus pandemic, even in the face of Trump administration vows to crack down on surging drug costs and efforts to tack price controls in Covid relief packages, health care reporter Sarah Owermohle writes. Pharmaceutical companies logged more than 800 prices increases this year, and adjusted the cost of 43 medicines upward by an average of 3.5 percent so far in July, according to GoodRx, which tracks the prices consumers pay at pharmacies. While the size of that increase is not out of line with past years, the number of branded drugs seeing hikes this month was higher than last year.

Drugmakers generally raise prices twice a year, in January and at mid-year. But some have delayed or staggered increases amid increased scrutiny and the fear of catching Trump’s eye. White House chief of staff Mark Meadows has signaled the president could issue an executive order as soon as this week that will include measures aimed at high prescription drug costs.

ON THE ECONOMY

THE 411 ON PPP — Among the more controversial recipients of federal small business aid: lawmakers, lobby groups , nonprofits like the Ayn Rand Institute and Kanye West. But the Small Business Administration’s disclosure of companies that received more than $150,000 in federal money is much more of an optics problem, financial services reporter Zachary Warmbrodt told your host today. The disclosures don’t mean that the program hasn’t been working or that small borrowers have been crowded out by large companies. The disclosures represent 650,000 companies out of 4.9 million borrowers and about $130 billion remains in the Paycheck Protection Program.

“By some measure the program was really successful because so many businesses large and small got funds,” said Zachary. “It’s hard to argue with the fact that banks approved half a trillion dollars worth of loans.”

The disclosures are, however, forcing the White House and Congress to rethink the popular program in the next pandemic funding bill. Treasury Secretary Steve Mnuchin has said that there should be more control over who gets the aid. Republican Sen. Marco Rubio, who chairs the small business committee, is proposing different types of loans targeted to small companies or those in low-income areas or those that suffered severe losses. And many lawmakers want the next round of PPP funding to focus on minority owned businesses, especially those that may not have an existing relationship to a bank.

 

COVID-2020

‘ONCE IN A LIFETIME’ — In 2010, Republicans won state houses across the country and redrew electoral maps to their advantage. Now, as Trump trails in the polls, Democrats see an opportunity to take back power. In the latest POLITICO Dispatch, national correspondent Natasha Korecki explains why the party is starting to think bigger than just beating Trump — and what message Biden needs to send to help Democrats in down-ballot races.

Listen to the latest POLITICO Dispatch podcast

NIGHTLY NUMBER

$50 billion The amount that would be made available in grants to state and local governments for the smallest businesses and nonprofits in a bipartisan proposal by Sens. Steve Daines (R-Mont.) and Cory Booker (D-N.J.). Business groups and consumer advocates are lobbying Congress to rethink a model that has leaned heavily on distributing funds via private lenders because of concerns that the smallest businesses lack relationships with traditional banks.

THE GLOBAL FIGHT

THE ONE AREA WHERE THE WHO CHIEF AGREES WITH TRUMP — “We worry about [an] increased number of cases, but more important is watching the number of deaths,” World Health Organization boss Tedros Adhanom Ghebreyesus told reporters today, according to European health care reporter Carmen Paun. That seems to be in line with Trump’s tweets over the past few days, noting that while media reports were focusing on the high number of cases in the country, the number of deaths has not followed a similar increasing trend.

“Even if the number of cases increases, if we manage to reduce the number of deaths, that would be very important,” Tedros said. The number of deaths globally has leveled off, he added, but some countries have managed to keep the death numbers low, while in others they are still rising, he said.

What seems to have worked in reducing mortality is shielding the elderly and focusing interventions on nursing homes, for example, which have seen high death rates in many developed countries, according to Tedros.

Complex picture: Other factors have also contributed to decreasing mortality rates, such as experience health care personnel have gained in treating patients and putting those likely to deteriorate on the right care path, added Mike Ryan, the WHO executive director for the health emergencies program. Increased testing rates, detecting more people who are infected in younger age groups and knowledge about some therapies which work in decreasing mortality, such as dexamethasone, have also contributed. But Ryan also warned that there could be a lag between the increase in the number of confirmed cases and the number of deaths. “It shouldn’t be a surprise if the deaths start to rise again,” he said.

U.S. still out: Even as Tedros found himself in agreement on the good news of declining death rates, the White House formally announced today it was withdrawing support from the WHO as of July 2021. Coronavirus coordinator Deborah Birx, though, touted U.S. investment in global public health and praised international efforts to contain the pandemic.

BECOME A CHINA WATCHER: Need help navigating the diplomatic flare-ups between the Trump administration and the Chinese Communist Party? Get unique insight on this critical relationship that will shape the world for decades to come, and analysis on the power players driving the conversation. Become a China Watcher to see where the relationship between these world superpowers is heading before anyone else. SUBSCRIBE TODAY.

PARTING WORDS

Wilmer Difo of the Washington Nationals takes batting practice during summer workouts at Nationals Park. | Getty Images

DIAMOND IN DISARRAY — On Monday night, Major League Baseball released the full 60-game league schedule for each team via a TV special on their own network, Nightly’s Tyler Weyant writes. But the show revealing the big games to come, like the world champion Washington Nationals starting their season hosting the New York Yankees on July 23, didn’t address the bumpy road the sport has had in returning and continuing concerns about the shortened season.

In just the last 72 hours: The Nationals had to cancel their training camp Monday amid delays in test results, which ended up showing two positives. The Cleveland Indians barred outfielder Franmil Reyes from their training camp after seeing pictures of him on social media at a large party without a mask. And Los Angeles Dodgers pitcher David Price joined the growing list of stars who have decided to opt out of playing this season.

Alongside the predictions of which teams struggle in the tight slate, and who might be able to win the World Series, players and team officials will continue to go through the league’s detailed Covid protocols. There is some initial good news: The first round of testing within the protocols revealed only 1.2 percent positive results among the 3,185 players and staff tested. But watch in the week ahead for the decisions of baseball’s biggest names, such as the Los Angeles Angels’ Mike Trout, and if testing positivity rates move toward the current national number of 7.9 percent.

A message from PhRMA:

America’s biopharmaceutical companies are sharing their knowledge and resources more than ever before to speed up the development of new medicines to fight COVID-19. They’re working with doctors and hospitals on over 1,100 clinical trials.

And there’s no slowing down. America’s biopharmaceutical companies will continue working day and night until they beat coronavirus. Because science is how we get back to normal.

See how biopharmaceutical companies are working together to get people what they need during this pandemic.

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