Congress negotiators struggle to reach border security deal

FILE PHOTO: Construction on the border wall with Mexico (top) is shown in New Mexico near Sunland Park, New Mexico, U.S. June 18, 2018. REUTERS/Mike Blake/File Photo

By Susan Cornwell and Richard Cowan

WASHINGTON (Reuters) – With little time remaining, congressional negotiators on U.S. border security funding have not settled the hot-button issues they hope to resolve, as some liberal Democrats potentially complicated their work by pressing for cuts in homeland security spending.

Congressional aides on Monday said that while constructive negotiations were held by staffers over the past weekend, it is now up to the lawmakers themselves to tackle the thorniest disagreements before a Feb. 15 deadline.

Seventeen Republican and Democratic members of the Senate and House of Representatives are tasked with finding a compromise border security deal with the allocation of Department of Homeland Security funds through Sept. 30.

The toughest unresolved disputes include the type of new physical barriers along the U.S.-Mexico border, if any, as President Donald Trump demands $5.7 billion for a wall that most Democrats and many Republicans oppose as wasteful and ineffective.

Other difficult questions, according to the aides, including whether to increase or cut funds for immigrant detention beds and the numbers of immigration law-enforcement agents and immigration judges.

Democrats had been backing legislation providing up to $1.6 billion for additional fencing on some parts of the southwestern border, far below Trump’s request for a wall that he originally envisioned as a 2,000 mile (3,200 km) concrete barrier.

But new fencing money was not included in an initial proposal Democrats sketched out last week, which did, however, call for a $589 million increase in DHS’s budget.

Representative Pramila Jayapal, co-chair of the liberal Congressional Progressive Caucus, told reporters she agreed with sentiments expressed in a letter circulated by four members of that group, which seeks Department of Homeland Security funding cuts.

Dated Jan. 29, the letter said the Trump administration had “abused their authority and the fidelity of public resources,” with initiatives that included separating immigrant children from their families. One of the signatories was Representative Alexandria Ocasio-Cortez, part of a new crop of Democrats swept into office this year on a strong liberal platform.

Trump has argued that additional DHS funding was necessary to stop illegal drugs and undocumented immigrants, touting a massive wall as the linchpin.

He has threatened to either let several federal agencies shut down for the second time this year if no deal is reached, or declare a “national emergency” that he says would allow him to build the wall with already-appropriated funds not necessarily related directly to border security.

(Reporting by Susan Cornwell and Richard Cowan; Editing by Susan Thomas)

Trump says U.S. government shutdown to last until agreement on border wall

U.S. President Donald Trump clasps his hands as he holds a video call with U.S. military service members in the Oval Office on Christmas morning in Washington, U.S., December 25, 2018. REUTERS/James Lawler Duggan

WASHINGTON (Reuters) – U.S. President Donald Trump on Tuesday said the partial shutdown of the federal government was going to last until his demand for funds to build a wall on the U.S.-Mexico border is met.

The U.S. government partially shut down on Saturday, and there is not yet any sign of tangible efforts to reopen agencies closed by a political impasse over Trump’s demand for border wall funds.

“I can’t tell you when the government is going to reopen,” Trump said, speaking after a Christmas Day video conference with U.S. troops serving abroad. “I can tell you it’s not going to reopen until we have a wall, a fence, whatever they’d like to call it. I’ll call it whatever they want, but it’s all the same thing. It’s a barrier from people pouring into the country, from drugs.”

He added: “If you don’t have that (the wall), then we’re just not opening.”

Funding for about a quarter of federal programs – including the departments of Homeland Security, Justice and Agriculture – expired at midnight on Friday. Without a deal to break the impasse, the shutdown is likely to stretch into the new year.

Building the wall was one of Trump’s most frequently repeated campaign promises, but Democrats are vehemently opposed to it.

(Reporting by Makini Brice; writing by Yeganeh Torbati, editing by G Crosse)

Top Trump aide says government shutdown may go into New Year

FILE PHOTO: White House Office of Management and Budget Director Mick Mulvaney speaks about of U.S. President Donald Trump's budget in the briefing room of the White House in Washington, U.S., March 16, 2017. REUTERS/Kevin Lamarque/File Photo

By Jan Wolfe

WASHINGTON (Reuters) – U.S. President Donald Trump’s budget director and chief of staff on Sunday said the partial U.S. government shutdown could continue to Jan. 3, when the new Congress convenes and Democrats take over the House of Representatives.

“It’s very possible this shutdown will go beyond (December) the 28th and into the new Congress,” Mick Mulvaney said on Fox News Sunday.

“I don’t think things are going to move very quickly here for the next few days” because of the Christmas holiday, added Mulvaney, who serves as director of the Office of Management and Budget and was named acting White House chief of staff 10 days ago.

The U.S. Senate adjourned on Saturday, unable to break an impasse over Trump’s demand for more funds for a wall on the border with Mexico that Democrats are unwilling to accept.

Mulvaney said the White House made a “counter-offer” to Democrats on funding for border security that fell between the Democratic offer of $1.3 billion and Trump’s demand for $5 billion.

As part of those talks on Saturday, Vice President Mike Pence offered to drop the demand for $5 billion for a border wall, substituting instead $2.1 billion, ABC News reported, citing unnamed sources.

A Democratic source familiar with the negotiations said real discussions have been happening between Democratic lawmakers and Republican Senator Richard Shelby, the chairman of the Appropriations Committee, who has been talking to the White House. It was unclear what Democrats had offered.

Mulvaney sought to shift blame for the partial shutdown to Nancy Pelosi, the Democratic nominee for speaker of the U.S. House of Representatives, saying she might hold up negotiations to ensure she secures the position.

“I think she’s in that unfortunate position of being beholden to her left wing to where she cannot be seen as agreeing with the president on anything until after she is speaker,” Mulvaney said. ”If that’s the case, again, there’s a chance we go into the next Congress.”  

Pelosi spokesman Drew Hammill disputed that account, saying in a statement: “As Mr. Mulvaney well knows, House Democrats are united in their opposition to the President’s immoral, expensive and ineffective wall.”

The White House should “stop the posturing and start serious bipartisan talks,” Hammill said.

Financing for about a quarter of federal government programs – including the departments of Homeland Security, Justice and Agriculture – expired at midnight on Friday. More than 400,000 “essential” employees in those agencies will work without pay until the dispute is resolved. Another 380,000 will be “furloughed,” meaning they are put on temporary leave.

Law enforcement efforts, border patrols, mail delivery and airport operations will keep running.

Building a wall to try to prevent migrants from entering the United States illegally was a central plank of Trump’s presidential campaign, but Democrats are vehemently opposed and have rejected his funding request.

Trump reiterated his push for border security on Sunday, saying on Twitter that “the only way” to stop drugs, gangs, and human trafficking at the border was with a wall or barrier.

“Drones and all of the rest are wonderful and lots of fun, but it is only a good old fashioned Wall that works!,” the president said in the tweet.

Earlier in the week, leaders in both the Senate and House thought they had reached a deal that Trump would sign that contained less money for border security, only to watch the president, under pressure from conservatives, re-assert his demand for $5 billion at the last minute.

Senator David Perdue, a Republican from Georgia on the Senate Banking Committee, said on Fox News’ “Sunday Morning Futures” that he thought a deal this week was possible.

“I spoke to the president last night, he wants that,” Purdue said, adding: “I’m hopeful that cooler heads will prevail and we’ll get to some number between $1.6 (billion) and $5 billion on that.”

(Reporting by Jan Wolfe and Lesley Wroughton; Editing by Mary Milliken, Daniel Wallis and Rosalba O’Brien)

Trump threatens ‘very long’ U.S. government shutdown

A pedestrian walk past the U.S. Capitol ahead of a possible partial government shut down in Washington, U.S., December 20, 2018. REUTERS/Joshua Roberts

WASHINGTON (Reuters) – U.S. President Donald Trump on Friday threatened a “very long” government shutdown just hours ahead of a midnight deadline, calling on the Senate to pass spending legislation that includes his $5 billion demand for border wall funding and seeking to shift blame for a holiday showdown to Democrats.

The Republican-led Senate had already approved funds for the government through Feb. 8 without money for the wall. But Trump pushed Republican allies in the House of Representatives on Thursday to use the short-term funding bill as leverage to force through the border wall money despite Democratic objections.

In a series of ten early-morning tweets on Friday, the president urged Senate Majority Leader Mitch McConnell to take up the amended bill from the House. Trump, who last week said he would be “proud” to preside over a shutdown, sought to blame Senate Democrats, whose support is needed to reach the 60 votes needed for passage.

Republicans currently have a narrow 51-49 majority in the Senate.

“If the Dems vote no, there will be a shutdown that will last for a very long time,” he wrote on Twitter.

“Senator Mitch McConnell should fight for the Wall and Border Security as hard as he fought for anything,” he tweeted. “He will need Democrat votes, but as shown in the House, good things happen.”

Three-quarters of government programs are fully funded through next Sept. 30, including those in the Defense Department, Labor Department and Health and Human Services.

But funding for other agencies, including the Department of Homeland Security, the Justice Department and Agriculture Department, is set to expire at midnight on Friday. A shutdown would leave a number of federal workers without a paycheck at Christmas.

If the House measure is put to a vote in the Senate, Democrats have pledged to prevent it from getting the votes it needs for passage.

“The bill that’s on the floor of the House, everyone knows it will not pass the Senate,” Senate Democratic Leader Chuck Schumer told reporters late Thursday.

It was not yet clear what would happen in that case. The partial government shutdown could begin, or lawmakers could work to find a solution that Trump finds acceptable.

Trump also called on McConnell to use the so-called “nuclear option” to force a Senate vote on legislation with just a simple majority, rather than the 60 votes currently needed.

The nuclear option would allow the chamber to approve legislation with a simple majority in an extreme break from Senate tradition that McConnell has so far resisted.

White House spokeswoman Sarah Sanders on Friday said Trump would stay in Washington rather than go to his Mar-a-Lago resort in Florida for the holidays as planned, but said she hoped the Senate would not vote down the bill.

“We hope they’ll step up,” she told reporters at the White House.

Trump’s border wall was a key campaign promise in the 2016 election, when he said it would be paid for by Mexico, and sees it as a winning issue for his 2020 re-election campaign.

(Reporting by Richard Cowan, Ginger Gibson and Susan Heavey; Editing by Kieran Murray, Sam Holmes and Jeffrey Benkoe)

White House cites options for funding border wall, avoiding shutdown

Workers on the U.S. side, work on the border wall between Mexico and the U.S., as seen from Tijuana, Mexico, December 13, 2018. REUTERS/Carlos Garcia Rawlins - RC18E76A6270

By Richard Cowan

WASHINGTON (Reuters) – The White House said on Tuesday it has found a way to build President Donald Trump’s promised border wall without new funding from Congress, stepping away from the president’s threat to shut down the U.S. government over border security disputes.

“We have other ways that we can get to that $5 billion,” White House spokeswoman Sarah Sanders said on Fox News. “At the end of the day, we don’t want to shut down the government, we want to shut down the border.”

Trump and Congress, embroiled in a feud over his proposed U.S.-Mexico border wall, have four days to reach a deal before a partial government shutdown could leave about a quarter of the federal workforce without paychecks.

Last week, in a heated exchange at the White House with Democratic leaders in Congress, Trump declared he would be “proud to shut down the government” if he did not get his demand for $5 billion to build a wall along the U.S.-Mexico border.

Since then, after days with no apparent progress, the senior Republican and Democrat on the Senate Appropriations Committee huddled with Senate Majority Leader Mitch McConnell just steps from the Senate chamber.

Following that meeting, Senate Appropriations Committee Chairman Richard Shelby told reporters, “We’re talking seriously about how to reach our goal” of keeping the government funded beyond Friday. He said they were “working with the president, working with the Democrats. There are a lot of variables here.”

A senior Democratic aide, who asked not to be identified, said Trump and Republicans in Congress have floated the idea of lawmakers providing the president $1 billion in new funds to be used for any of his immigration priorities – an idea that Democrats will not accept.

Trump has demanded $5 billion as a down payment on construction of a wall that he argues is needed to keep illegal immigrants and drugs from entering the United States. Building the wall was a key pledge of his 2016 presidential campaign. Trump had originally said Mexico would pay for the wall, but leaders of the United States’ southern neighbor have repeatedly said it would not.

Democrats and some Republicans argue there are less costly, more effective border controls than a wall.

Sanders indicated the White House was backing down from Trump’s threat to shut down the federal government if Congress refused to provide money for his wall.

“There’s certainly a number of different funding sources that we’ve identified that we can use, that we can couple with the money that would be given through congressional appropriations, that would help us get to that $5 billion that the president needs in order to protect our borders,” Sanders said on Fox.

Asked whether the White House was exploring the use of funds, including from the Defense Department, for building the wall and whether that would be legal, Sanders said, “Absolutely.”

But Shelby was less certain.

In response to a reporter’s question on whether Trump could order the Pentagon to shift some of its funds to wall construction, Shelby said: “I don’t know about that.” He added, however, that Trump “does have the power to defend the country” and “the power to protect the border.”

The money Trump wants is a fraction of the roughly $450 billion Congress was poised to approve – before the latest battle over the proposed wall – to fund several agencies which will otherwise run out of money at midnight on Friday.

(Reporting by Doina Chiacu and Richard Cowan; editing by Jonathan Oatis)

Trump again threatens to shut government over wall funding

U.S. President Donald Trump speaks to reporters before he boards the Marine One helicopter to begin his travel to Mississippi from the White House in Washington, U.S. November 26, 2018. REUTERS/Jonathan Ernst

WASHINGTON (Reuters) – U.S. President Donald Trump said he would “totally be willing” to shut down the federal government unless Congress authorized $5 billion to fund his long-promised wall along the U.S. border with Mexico, according to a Politico interview published on Wednesday.

Trump also told the news outlet, in the interview conducted on Tuesday, that the $5 billion request would pay for physical barrier alone, and that additional funding would be needed for other border security measures.

In a separate interview with the Washington Post on Tuesday, the Republican president said that if Congress does not fund the wall he might try to get it done another way. He referred to his ordering of U.S. troops to the border in October to install “barbed wire and fencing and various other things.”

U.S. lawmakers must act to pass a spending bill by Dec. 7 to fund some government agencies, including the Department of Homeland Security that oversees the border and immigration.

Trump has not followed through on previous threats to shut down the U.S. government over the border wall funding. But with his fellow Republicans set to lose control of the House of Representatives in January following Democrats’ gains in elections this month, Trump’s comments have raised concern that this time he may not back down.

Republicans will maintain their control of the Senate next year but still, need some Democratic support to pass spending legislation.

Democrats have refused to support Trump’s border wall, which was a major part of his 2016 election platform, but have backed other border security measures.

Trump told Politico on Tuesday that he saw little need to work with Congress over immigration reforms to address the roughly 700,000 so-called Dreamers, young adults who were brought to the United States illegally as children.

Instead, he said he wants to see first how court challenges play out over an Obama-era program that allowed Dreamers to stay in the country.

If the courts ultimately rule against the program, then he would be willing to negotiate over “border security and everything else,” he told Politico.

Legislation to protect the Dreamers has so far failed to pass Congress.

(Reporting by Susan Heavey; Editing by Matthew Mpoke Bigg, Chizu Nomiyama and Frances Kerry)

Congress struggles to meet deadline for government funding bill

People walk by the U.S. Capitol building in Washington, U.S., February 8, 2018. REUTERS/Leah Millis/File Photo

By Richard Cowan

WASHINGTON (Reuters) – The U.S. Congress, facing a Friday midnight deadline, toiled on Monday to finish writing a $1.2 trillion bill to fund the federal government through Sept. 30, as several thorny issues lingered, including funding President Donald Trump’s border wall.

A range of other hot-button initiatives was also slowing the unveiling of legislation that the Republican-controlled House of Representatives had aimed to make public late on Monday.

Republican lawmakers exiting a private meeting with House Speaker Paul Ryan said, for example, that there still was no decision on whether a couple of narrow, gun control-related measures could be inserted into the massive spending bill.

A Feb. 14 mass shooting at a high school in Parkland, Florida, has given impetus to a bill that would improve background checks for gun sales and another that would spend money to help schools defend themselves against gun violence but without putting new limits on weapons sales.

Republican Representative Mike Simpson, a senior member of the House Appropriations Committee, noted there was Republican opposition to the gun measures unless other steps such as expanding gun owners’ rights to carry concealed weapons across state lines were also enacted.

Simpson and other lawmakers said they did not know the fate of a move to include around $1.6 billion in funding for the border wall with Mexico, which is opposed by many Democrats and some Republicans.

“Everything that was significant is a work in progress. There is nothing defined” yet, said Republican Representative Mark Meadows, who heads the right-wing House Freedom Caucus.

Talks were expected to go late into the night.

Lawmakers were hoping to pass the “omnibus” spending bill before the start on Saturday of a two-week spring break. Doing so would put an end for six months to the possibility of any more government shutdowns by funding federal agencies for the rest of this fiscal year.

The federal government was forced to close over a weekend in January because of a similar budget battle.

POLARIZING MEASURES BEING SHELVED

With government funding running out at week’s end, several contentious items were tentatively being killed off to help speed passage of a bill that will significantly increase U.S. defense spending as well as many non-defense programs.

Several Republican lawmakers said a move had failed to renew federal subsidies to health insurers, which would help make “Obamacare” more affordable for low-income people.

Attempts to bolster the Affordable Care Act appeared to have collapsed after Republicans insisted on language that would have placed abortion prohibitions on those insurance plans and Democrats refused to go along.

“The speaker (Ryan) just said it wasn’t in there,” Meadows told reporters.

Trump discontinued the subsidy payments last year.

Trump also has threatened to veto the bill if it contains federal payments for constructing a New York-New Jersey railroad tunnel project known as the Gateway Program. Lawmakers said congressional leaders were still arguing over that money.

Three Republican House members told reporters that a separate initiative to impose an internet sales tax also appeared to be doomed.

Simpson, asked whether there were worries that the House and Senate would be unable to approve the spending bill before existing agency funds run out, said: “There’s always worries about that.”

Republican leaders were hoping to hold the House debate and votes on Wednesday, giving the Senate a couple more days to do the same before the Friday deadline. But the House timetable might have to be delayed a day, some aides and lawmakers said.

(Reporting by Richard Cowan; Editing by Peter Cooney)

Congress expected to vote on budget to avert government shutdown

People walk by the U.S. Capitol building in Washington, U.S., February 8, 2018.

By Richard Cowan

WASHINGTON (Reuters) – The U.S. Senate and House of Representatives were expected to vote on a proposed budget deal on Thursday that would avert another government shutdown but that has angered fiscal conservatives who complain it would lead to a $1 trillion deficit.

The plan to keep the government operating and to increase spending over the next two years faced resistance from conservatives in the Republican Party, who favor less spending on domestic government programs. At the same time, many liberal Democrats wanted to withhold their support as leverage to win concessions on immigration policy.

That meant the bill’s passage was not assured in the House and would need some Democratic support. House Speaker Paul Ryan, a Republican who has backed the agreement, said on Thursday he believed the chamber will pass the budget deal.

“I think we will,” Ryan told radio host Hugh Hewitt. “This is a bipartisan bill. It’s going to need bipartisan support. We are going to deliver our share of support.”

Mark Meadows, chairman of the conservative House Freedom Caucus, called the deal “eye-popping and eyebrow-raising.”

“We took an official position last night to say we can’t support this,” he told CNN on Thursday.

Republicans control both chambers of Congress.

The rare bipartisan deal reached by Senate leaders on Wednesday raises spending on military and domestic programs by almost $300 billion over the next two years.

It would allow for $165 billion in extra defense spending and $131 billion more for non-military programs, including health, infrastructure, disaster relief and efforts to tackle an opioid crisis in the country.

It would stave off a government shutdown before a Thursday night deadline and extend the federal government’s debt ceiling until March 2019, putting off for more than a year the risk of a debt default by the United States.

CONSERVATIVE OPPOSITION

The agreement, backed by Republican President Donald Trump, disappointed conservative House Republicans and outside groups.

“It’s not like Republicans aren’t concerned about disaster relief, or Republicans aren’t concerned about funding community health centers or dealing with the opioid crisis,” U.S. Representative Warren Davidson, a Republican, said in an interview with National Public Radio.

“But when you add them all up, it adds to an awful lot of spending. … It’s not compassionate to bankrupt America.”

Liberal Democrats meanwhile opposed the deal because it does not include an agreement to protect from deportation hundreds of thousands of “Dreamers,” young people brought illegally to the United States as children.

House Democratic leader Nancy Pelosi on Wednesday staged an eight-hour speech on the House floor in support of immigration legislation, including reading letters from Dreamers pleading to be allowed to stay in the United States.

A number of lawmakers who supported the bill acknowledged the deal was not perfect. “It’s not pretty,” Republican U.S. Representative Adam Kinzinger said on CNN.

Democratic Senator Jon Tester said he hoped House Democrats would back the measure. “We don’t want the perfect to get in the road of the good,” he told the cable network.

Republican Senator Lindsey Graham said many lawmakers believe the defense spending in the bill was essential. “We’re going to get it through because most people will support it,” he told Fox News.

Senate Republicans planned a procedural vote on a stand-alone bill to increase military funding for the rest of the year to demonstrate support for Trump’s promised defense build-up.

Democrats will not support it because it does not contain similar spending increases for non-military programs. But the Senate’s failure to advance the bill will not damage the budget legislation, which is due for a vote later in the day.

White House adviser Kellyanne Conway told Fox News the agreement provides long-term certainty in the budget and funding for Trump priorities including infrastructure and military funding.

Failure to agree on spending led to a partial three-day shutdown of government agencies last month.

(Reporting by Makini Brice, Katanga Johnson, Doina Chiacu; Editing by Frances Kerry and Alistair Bell)

Senate leaders in a rare display of bipartisanship, reach $300 billion federal spending deal

U.S. Sen. Lindsay Graham speaks to reporters outside the Senate chamber on Capitol Hill in Washington, U.S. February 7, 2018.

By Richard Cowan and Amanda Becker

WASHINGTON (Reuters) – U.S. congressional leaders, in a rare display of bipartisanship, on Wednesday reached a two-year budget deal to raise government spending by almost $300 billion, attempting to curb Washington’s fiscal policy squabbling but also widening the federal deficit.

The agreement, announced by the Republican and Democratic leaders of the Senate and House of Representatives, would lift caps on defense funding and some domestic spending. It also would postpone a reckoning with the federal debt limit.

Along with President Donald Trump’s tax cuts that were approved by Congress in December, the new round of spending would further add to the bulging deficit and may face resistance in the House from Democrats as well as Republican fiscal hawks.

“This bill is the product of extensive negotiations among congressional leaders and the White House,” Senate Majority Leader Mitch McConnell, a Republican, said on the Senate floor.

The plan will need to be passed in the House and the Senate, both controlled by Trump’s fellow Republicans, before it can be sent to the White House for the president to sign into law.

House Democrats have warned they will not back the deal unless Republican House Speaker Paul Ryan promises to advance separate legislation on immigration policy.

Chuck Schumer, leader of the Senate Democrats, touted the deal, saying, “It should break the long cycle of spending crises that have snarled this Congress and hampered our middle class.”

The defense spending increase in it should allow Trump to make good on his campaign promise for a military build-up.

The White House said the deal includes an extension, until March 2019, of the government’s debt ceiling. The Treasury Department has been warning that without an extension in borrowing authority from Congress, the government would run out of borrowing options in the first half of next month, risking an unprecedented debt default.

The agreement also funds disaster relief, infrastructure and programs addressing opioid abuse, the Senate leaders said.

DEFICIT INCREASE

White House legislative affairs director Marc Short said the deal would increase spending by “just shy” of $300 billion.

A senior congressional aide said this amount of additional spending would not be offset by any spending cuts or new tax revenue, meaning an increase in the federal deficit.

“This really is the moment where it has become clear that despite record levels of debt and approaching trillion dollar deficits, Congress has stopped caring about what they’re doing to the fiscal health of the country,” said Maya MacGuineas, head of the Committee for a Responsible Federal Budget, a group that advocates for long-term fixes to Washington’s debt problems.

Aside from the budget deal, lawmakers were also trying to reach agreement by Thursday to avoid a government shutdown and fund the government until March 23. If that fails, the U.S. government would suffer its second shutdown this year, after a partisan standoff over immigration policy led to a three-day partial shutdown last month.

In financial markets, yields on benchmark 10-year notes rose on news of the budget deal, on expectations of higher growth and potentially greater Treasury supply.

A large uptick in issuance is expected after Congress raises the debt ceiling, which along with higher inflation expectations has weighed on bonds in the past week.

A congressional source familiar with the agreement said it would increase non-defense spending by $131 billion and include $20 billion for infrastructure spending. It also would extend funding for the Children’s Health Insurance Program (CHIP) for 10 years instead of the current six, the source added.

Passage of the plan would ease the brinkmanship over spending that roils Washington so regularly that financial markets barely flinch at the threat of a government shutdown.

Immigration again emerged as a possible point of contention. House Democratic leader Nancy Pelosi, who helped negotiate the accord, nevertheless said she would oppose it unless Ryan promises to advance legislation to protect hundreds of thousands of young adult immigrants, known as “Dreamers,” brought to the United States illegally as children.

January’s shutdown came after Democrats sought to have a spending bill include protections for the Dreamers that Trump has rescinded effective in March.

Republicans are eager to keep spending and immigration separate. Trump threatened on Tuesday to upend budget talks by saying he would welcome a government shutdown if Congress were not able to agree to changes in immigration law that he said would prevent criminals from entering the country.

(Additional reporting by David Morgan, Susan Heavey and Doina Chiacu in Washington and April Joyner in New York; Writing by Alistair Bell; Editing by Will Dunham)

White House sees good chance of long-term budget deal

Senate Minority Leader Chuck Schumer (D-NY) speaks during a news conference on Capitol Hill in Washington, U.S., February 6, 2018.

By Richard Cowan

WASHINGTON (Reuters) – U.S. lawmakers are expected to unveil “a good, bipartisan deal” on Wednesday that would raise current limits on federal spending for two years, the White House said, as Congress seeks to end fights over spending that have plagued Washington for months.

Higher defense spending expected in the agreement would allow President Donald Trump to make good on his campaign promise for a U.S. military build-up, although the White House is still concerned about non-defense spending levels, White House legislative affairs director Marc Short told MSNBC.

But Nancy Pelosi, the House of Representatives’ Democratic leader, said she would not support such a deal, aimed at lifting some limits on government spending for two years, unless Republican Speaker Paul Ryan promised to advance legislation on immigration. Trump’s fellow Republicans control both chambers of Congress.

Over the past several months, congressional leaders have been negotiating a deal that would raise spending caps for the current fiscal year, which ends on Sept. 30, and the next one for both defense and non-defense programs.

A broad budget deal could ease the brinkmanship over spending that roils Washington so regularly that financial markets barely flinch anymore at the threat of a government shutdown.

“There’s some things that you give and take in a negotiation like this, and so I think this will be a good, bipartisan deal but we’re more excited about the defense spending,” Short said.

Aside from the planned longer-term deal, lawmakers were also trying to reach agreement by Thursday to avoid a shutdown and fund the government until March 23.

“We expect the government is not going to shut down this week,” Short said.

In a further sign of Congress’ inability to get basic work done, the House on Tuesday had to approve another stopgap bill to keep the federal government from shutting down.

Stopgap measures are needed when Congress fails to approve spending on time for a full fiscal year, something it has done only four of the past 40 years, according to congressional researchers.

The Senate was expected to take up the House stopgap legislation as Congress raced to get a finished bill for Trump to sign into law before government funding runs out on Thursday.

If that fails, the U.S. government would experience its second shutdown this year, after a partisan standoff over U.S. immigration policy led to a three-day partial shutdown last month.

Immigration again emerged as a possible point of contention in budget talks when Democrat Pelosi said she would oppose a two-year deal unless the Republican Ryan promised to advance legislation to protect hundreds of thousands of young adult immigrants, known as “Dreamers,” brought to the United States illegally as children.

Republicans are eager to keep spending and immigration separate. But Trump threatened on Tuesday to upend budget talks by saying he would welcome a government shutdown if Congress were not able to agree to changes in immigration law that he said would prevent criminals from entering the country.

January’s shutdown came after Democrats sought to have a spending bill include protections for the Dreamers that Trump has rescinded effective in March.

On Tuesday, top Senate Democrat Chuck Schumer said the emerging Senate two-year deal would increase funding for domestic programs like drug treatment and broadband infrastructure that Democrats want, as well as a military spending increase sought by Republicans.

“We’re making progress,” Senator Dick Durbin, the Democratic minority whip, told MSNBC on Wednesday.

Congress must also raise the federal debt ceiling or face defaulting on the government’s bills, and several Republican lawmakers said the matter would be part of Senate budget talks. The U.S. Treasury is expected to run out of borrowing options by late March.

(Additional reporting by Susan Heavey; Editing by Will Dunham)