It’s Thursday. Drinks are half off at Starbucks this afternoon! Go WILD ☕️. Here’s what we’re covering today:

• Congressional negotiators seem closer to a deal on the border and Ukraine funding. It seemed highly unlikely there would be a deal before Christmas, but it’s possible!
• Former Speaker Kevin McCarthy (R-Calif.) held a photo-op with lawmakers and staffers for his last day on Capitol Hill.
• Former New York City Mayor Rudy Giuliani actually *won’t* testify in his defamation trial. This was a bit of a plot twist.

I’m Cate Martel with a quick recap of the morning and what’s coming up. Send tips, commentary, feedback and cookie recipes to cmartel@thehill.com. Did someone forward this newsletter to you? Sign up here.  

“Negotiators are sounding increasingly upbeat about the progress they’re making toward a border deal that would unlock aid for Ukraine before lawmakers leave for Christmas — even as they didn’t report any solutions Wednesday to the most difficult issues they face,” reports The Hill’s Al Weaver.

What changed?: White House officials met with Senate leaders and negotiators in the Capitol Wednesday evening.

The real question in the Senate: The Senate is scheduled to leave this week for the holidays. But if negotiators are close to a deal, will the Senate stay in session next week to continue talks?

What about the House?: The House is also expected to leave at the end of this week. But if there’s a deal, Speaker Mike Johnson (R-La.) said he would consider bringing members back.

House Republicans voted Wednesday to formalize the impeachment inquiry into President Biden. The vote: 221-212 along party lines.

Why this matters: It gives more legal weight to Republicans’ demands in the investigation. It will also intensify the probe.

The House just passed the annual Defense spending bill, sending the $886 billion measure to President Biden’s desk.

The vote: “The vote was 310-118, with 45 Democrats and 73 Republicans opposing the measure. The House passed the legislation under a suspension of the rules, which means it needed a two-thirds majority.” (The Hill)

Plus: Congress just approved a short-term extension to warrantless surveillance powers. This punts the issue until mid-April.

Senate Republican Leader Mitch McConnell (Ky.) and Sen. Josh Hawley (R-Mo.) got into a little spat over the Defense bill. The simmering McConnell-Hawley tensions, via The Hill’s Alexander Bolton

It’s McCarthy’s last day of school: Former Speaker Kevin McCarthy (R-Calif.) announced he is stepping down at the end of the year. Well, that makes today his last day on Capitol Hill. NBC News’s Scott Wong posted a video of McCarthy doing a photo line with lawmakers, staffers and dogs. Video of McCarthy’s photo line

Steny with the jokes: Page Six posted a report on how Travis Kelce is planning a “special celebration” for Taylor Swift’s birthday. Rep. Steny Hoyer (D-Md.) reposted Page Six and added that “He’s taking her to Cups.” Cups is a coffee shop in a Senate office building. See the post

Holiday Patrick mode activated: Politico’s Jordain Carney posted that she “joked to [Rep. Patrick McHenry (R-N.C.)] that he wasn’t wearing a bow tie. He said he had it in this jacket pocket (and pulled it out to prove it) but wasn’t wearing it because he had already given up on today.” ⬅️ Mood.

“Rudy Giuliani in a sudden twist won’t testify in his defamation trial being brought by two former Georgia election workers, Giuliani’s lawyer said Thursday.”

Why that’s surprising: “Giuliani had been listed as a witness, and for days, the former New York City mayor had told reporters he intended to testify to tell his story. After saying definitively earlier in the week that he would testify, Giuliani cast a hint of doubt upon leaving the courthouse Wednesday night.”

Back story on the case: “Former Georgia election worker Ruby Freeman and Shaye Moss sued Giuliani two years ago on claims of ‘defamation, intentional infliction of emotional distress, civil conspiracy, and punitive damage.’ The mother-daughter duo is pursuing upward of $43.5 million in damages after facing a deluge of threats over being baselessly accused of committing election fraud in the 2020 presidential election.” (The Hill)

A Russian court denied Wall Street Journal reporter Evan Gershkovich’s appeal, meaning he will remain detained in Russia.

Back story: “The Lefortovo District Court in Moscow last month extended Gershkovich’s detention until the end of January and denied his appeal on the extension Thursday. He was detained in March on accusations of espionage while reporting in Yekaterinburg, a city that is about 1,200 miles east of Moscow. The Journal and the United States have denied the spying allegations and maintain that Gershkovich has been wrongfully detained.” (The Hill)

‘Putin Says Russia Wants to Reach Agreement on Return of WSJ’s Evan Gershkovich’: The Wall Street Journal

“The Supreme Court must decide if it will immediately weigh in on whether President Trump is immune from criminal prosecution for his actions on and preceding Jan. 6, 2021, putting the justices front and center in a pivotal election-year battle.”

The Hill’s Zach Schonfeld explains how this could play out politically at a very important time.

Meanwhile: A federal judge agreed to pause proceedings in Trump’s election interference case while he appeals a related decision. (The Hill)

The Hill and Decision Desk HQ launched our Election Center landing page for the latest 2024 polling and forecasting for the presidential, House and Senate races. I’ve found this to be a helpful link to monitor trends and shifts in the races. Check it out — The Hill-Decision Desk HQ Election Center

? Celebrate: Today is National Bouillabaisse Day!

? Well, the name Elon University is already taken: Billionaire Elon Musk is planning to open a university in Austin, Texas. (Bloomberg)

✈️ I laughed out loud several times while reading this: The Washington Post published a list of “52 definitive rules of flying.” A few notable mentions: 

• “Abandon your partner if they don’t have TSA PreCheck.” Brutal, but FAIR.
  “Sorry, your crossbody bag is a personal item.” I admit, this is tempting to try.
• “Find your seat, and get out of the aisle.” Don’t be that person.
• “The aisle seat is the gatekeeper of the row.”
• “The window seat controls the shade.”

? FYI for soda drinkers: The FDA recalled Diet Coke, Sprite and Fanta cases in Alabama, Mississippi and Florida. (The Hill)

‘Is Jerome Powell’s Fed Pulling Off a Soft Landing?’: The New York Times

‘World Central Banks Signal Victory Over Inflation Is in Sight’: The Wall Street Journal

‘Images of stripped and humiliated Palestinians draw condemnation’: The Washington Post

‘It’s Only a Matter of Time Before a Tsunami Hits the Northwest. Why Is It Missing from FEMA’s Risk Analysis?’: Politico

‘In 4-Hour News Conference, Putin Suggests Western Support for Ukraine Is Waning’: The New York Times ^ Four. Hour. News. Conference. ?‍?

The House and Senate are in. President Biden and Vice President Harris are in Washington, D.C. (all times Eastern)

• Noon: A Senate cloture vote. ?️ Today’s agenda
• 1 p.m.: White House press secretary Karine Jean-Pierre and National Security Council spokesperson John Kirby brief reporters. ? Livestream
• 3:15 p.m.: Biden delivers remarks on prescription drug costs at the National Institutes of Health in Bethesda, Md. ? Livestream

To you leave you smiling, here’s a dog who values self-care.