Republicans to press ahead with plan to dismantle Obamacare health plan

File photo: Information cards are stacked on a table during an Affordable Care Act outreach event for the Latino community in Los Angeles, California September 28, 2013. REUTERS/Jonathan Alcorn

WASHINGTON (Reuters) – U.S. President Donald Trump and his Republicans were set to press ahead in Congress on Thursday with a plan to dismantle Obamacare, negotiating changes as they go, with their bill slated to move to the budget committee on its way to a crucial vote soon by the full House of Representatives.

Conservatives have demanded a quicker end to the expansion of the Medicaid program put in place under the Affordable Care Act, the healthcare overhaul approved under former Democratic President Barack Obama.

They also want to add work requirements for some recipients of Medicaid, the government health insurance program for the poor.

The White House said it was discussing such tweaks with House Republican leaders, including Speaker Paul Ryan.

“There’s no perfect piece of legislation. There’s gonna be this framework that’s going to be added to or subtracted to during the process, and eventually it’s going to pass the House and it’s going to pass the Senate,” White House budget director Mick Mulvaney told Fox News in an interview on Thursday.

Mulvaney acknowledged the difficulty the draft legislation could face in the Senate, where Republicans hold a slimmer majority and several of them have already voiced doubts.

On Wednesday, Trump held a campaign-like rally in Tennessee as he tried to build momentum for his first legislative initiative to make good on his campaign promise to repeal and replace Obamacare.

Trump administration officials and House Republican leaders have not given a timetable for a vote on the legislation, although Ryan has said he wants to pass it by lawmakers’ mid-April recess.

Two House committees approved the bill’s provisions with no changes last week. On Thursday, the Budget Committee will try to unify the plan into a single bill for consideration on the House floor.

Signs have emerged that the White House was winning over reluctant conservatives who initially questioned the legislation on the grounds that it too closely resembled Obamacare. But Republican moderates have raised concerns that tax credits in the bill will not be enough to help people buy health insurance.

Senate Republicans have also voiced dissatisfaction with the bill.

“As written, the House bill would not pass the Senate. But I believe we can fix it,” Senator Ted Cruz said on Wednesday.

Republican Senator Rand Paul, a fierce critic of the House plan, also said the White House has been more open to negotiation than House leaders.

(Writing by Susan Heavey; Editing by Bernadette Baum)

Trump recommits to U.S. allies but says they must pay ‘fair share’

President Trump addresses Joint Session of Congress. REUTERS/Carlos Barria

By Matt Spetalnick

WASHINGTON (Reuters) – President Donald Trump on Tuesday reaffirmed support for the United States’ longstanding security alliances around the world but insisted that friends and partners from Europe to the Middle East to the Pacific must “pay their fair share of the cost.”

In his first nationally televised speech to Congress since taking office on Jan. 20, Trump sought to reassure allies still uneasy over doubts he raised during the 2016 presidential campaign about his commitment to their defense and to maintaining a U.S. global leadership role.

But he also made clear that he expects those countries to shoulder more of the burden of their own security needs, echoing a campaign message that some allies had taken advantage of Washington’s generosity in providing them a security umbrella.

“Our foreign policy calls for a direct, robust and meaningful engagement with the world,” Trump told a joint session of Congress. “It is American leadership based on vital security interests that we share with our allies across the globe.”

He specifically assured NATO allies of his new administration’s continued commitment to the decades-old alliance. However, he made no mention of one of the main sources of European concern: his friendly overtures during the campaign toward Russian President Vladimir Putin.

“We strongly support NATO, an alliance forged through the bonds of two World Wars that dethroned fascism and a Cold War that defeated communism,” Trump said.

“But our partners must meet their financial obligations,” he said. “And now, based on our very strong and frank discussions, they are beginning to do just that.”

Then, deviating from his prepared remarks, Trump added: “In fact, I can tell you the money is pouring in. Very nice.” But he offered no specifics.

Some critics had accused Trump of failing to recognize the benefit that accrued to the United States of having strong democratic allies helping to stabilize volatile areas like the Middle East, Ukraine and South Asia.

Trump’s remarks followed the deployment earlier this month of senior Cabinet members to Brussels, Bonn and Munich, Germany, aimed at calming European worries.

The Europeans heard from Defense Secretary James Mattis that the North Atlantic Treaty Organization military alliance was not “obsolete” after all, despite Trump’s suggestions to the contrary.

Vice President Mike Pence told them that Russia would be “held accountable” for its actions in Ukraine.

Mattis made his first foreign trip to South Korea and Japan, where he sought to ease concerns about what Trump’s self-styled “America First” strategy means for U.S. foreign policy in Asia.

While seeming to tackle some of the doubts of U.S. allies, Trump still made clear that he wanted them to do more.

“We expect our partners, whether in NATO, in the Middle East, or the Pacific, to take a direct and meaningful role in both strategic and military operations, and pay their fair share of the cost,” he said.

(Reporting by Matt Spetalnick; Editing by Jonathan Oatis)

Trump to lay out plans for America in upcoming speech to Congress

White House aide Omarosa Manigault (center R) directs traffic as U.S. President Donald Trump (center L) welcomes the leaders of dozens of historically black colleges and universities (HBCU) in the Oval Office at the White House in Washington, U.S. February 27, 2017. REUTERS/Jonathan Ernst

By Steve Holland

WASHINGTON (Reuters) – Donald Trump gets a chance to put the rocky start to his presidency behind him on Tuesday night with a speech to the U.S. Congress where he will lay out his plans for the year including a healthcare overhaul and military buildup.

The speech at 9 p.m. (0200 GMT Wednesday) in the chamber of the House of Representatives will be Trump’s biggest chance yet as president to command a large prime-time audience and describe his agenda after a first month in office characterized by missteps, internal dramas and acrimonious disputes with the news media.

The address, which Trump has been writing with aide Stephen Miller and others, will include some gestures toward unifying a country polarized by a bitterly fought election and divided in the early days of his presidency.

An average of recent polls by Real Clear Politics put his approval rating at about 44 percent, low for a new president.

White House spokesman Sean Spicer said the theme of the speech to Congress, which is controlled by Trump’s fellow Republicans, would be “the renewal of the American spirit” and that it would be grounded in how to solve the problems of everyday Americans.

“He will invite Americans of all backgrounds to come together in the service of a stronger and brighter future for our nation,” Spicer told reporters on Monday.

Trump, whose inauguration speech on Jan. 20 painted a dark picture of the United States and referred to “American carnage,” told Reuters last week in an interview that his address would be a speech of optimism.

The president faces a host of questions going into his first speech before a joint session of Congress.

Specifics of his plan to overhaul former Democratic President Barack Obama’s signature healthcare law have not been released. He has yet to describe how to pay for a sharp increase in planned spending on rebuilding U.S. roads and bridges.

His proposals to cut taxes for millions of people and corporations have not been sketched out. His strategy for renegotiating international trade deals remains unclear. He took delivery on Monday of a Pentagon proposal for fighting Islamic State militants and must decide on it in the days ahead.

He seeks a big increase in defense spending but that plan includes a demand that non-defense federal agencies cut funds to offset the cost, painful reductions likely to face opposition in Congress. Some Republicans have said the proposed 10 percent defense spending increase is not enough to meet the military’s needs.

Asked in a Fox News interview broadcast on Tuesday how he would pay for the increased spending, Trump said, “I think the money is going to come from a revved up economy.”

His executive order temporarily banning people from seven Muslim-majority nations on national security grounds stirred protests and was put on hold by federal courts. He was expected to sign a replacement order on Wednesday.

DEMOCRATIC DISPLEASURE

Tim Albrecht, a Republican strategist in Iowa, said the speech was Trump’s best opportunity to date to explain where he wants to take the country. Albrecht doubted there would be much in the way of conciliatory language.

“Despite those at home or in the audience, he’s going to put forward what he believes needs to be done just as he did in the two years he ran for president,” he said. “As with everything in Trump land, conventional wisdom is thrown out the window.”

Democratic lawmakers plan to attend the speech and give their reactions to reporters afterward, as is the custom during similar events, according to congressional aides.

But at least one Democrat – Representative Luis Gutierrez of Illinois, has said he will protest Trump’s speech by refusing to applaud or give him a standing ovation, as also is a custom at presidential speeches.

Democrats aim to show their displeasure with Trump policies by inviting an array of guests to the House visitors’ galleries to highlight their opposition to his agenda.

Democratic Senator Dick Durbin of Illinois has invited Aaima Sayed, a medical student who participates in an Obama administration program that defers deportation for youths brought to the United States illegally. Trump has not given a definitive answer on whether he will leave the program in place.

Other Democratic guests include Muslim immigrants, an advocate of programs for people with disabilities and people who want new gun control measures.

Trump’s guest list illustrates some of his favorite themes: the widows of two California police officers killed by an illegal immigrant, a young woman who benefited from a Florida school choice program and the daughter of a pharmaceutical entrepreneur who founded his company to look for a cure for her illness.

Another guest will be Maureen Scalia, wife of late Supreme Court Justice Antonin Scalia, a hero to conservatives whom Trump hopes to replace on the court with Neil Gorsuch.

House Democratic leader Nancy Pelosi told reporters on Monday that if Trump’s address was anything like his inaugural speech, “it will be a very sad evening for our country.”

(Additional reporting by Richard Cowan, Ayesha Rascoe, Jeff Mason, Emily Stephenson, Doina Chiacu; Editing by Peter Cooney and Frances Kerry)

Overhaul of Medicaid expansion could cost states $32 billion: report

A woman picks up a leaflet at a health insurance enrollment event in Cudahy, California March 27, 2014. REUTERS/Lucy Nicholson

By Hilary Russ

NEW YORK (Reuters) – Proposals in Congress that would effectively end Medicaid expansion in 31 U.S. states would cost those states at least $32 billion altogether in 2019, according to a report released on Friday.

“Few, if any, states could absorb such new costs,” the Center on Budget and Policy Priorities, a Washington-based, left-leaning think tank, said in its report.

Republican President Donald Trump has pushed to fulfill a campaign promise to replace Obamacare, his Democratic predecessor’s signature healthcare plan, with the help of a Republican-controlled Congress.

More details of potential replacements by U.S. House Republicans for former President Barack Obama’s Affordable Care Act emerged on Friday, though they have yet to agree on a single detailed policy proposal to repeal and replace the healthcare law.

One scenario to phase out enhanced federal funding would convert the current system, in which states share the cost of Medicaid enrollees with the federal government, into fixed payments, or block grants, sent to the states.

But that would dramatically affect the 31 states and the District of Columbia that chose to expand Medicaid, the government health insurance program for low-income Americans, and collect extra dollars that came with expansion.

Those states would have to find the extra $32 billion themselves to maintain their expansions, the center said in its report.

The block grant conversion would “shrink federal Medicaid funding over time, result in even deeper funding cuts when needs increase, and ultimately place coverage for tens of millions more Americans at risk,” the center said in its report.

The reduced federal funding would cause the automatic end of the expansion in seven states. Other expansion states would “almost certainly drop or substantially scale back their expansions,” the report said.

Medicaid sits at the heart of the federal-state fiscal relationship. Over $330 billion in federal Medicaid dollars flowed to states in fiscal year 2016, accounting for more than half of all federal grants sent to state and local governments and the largest individual program, according to Standard & Poor’s.

(Reporting by Hilary Russ; Editing by Jonathan Oatis)

Trump vows military build-up, hammers nationalist themes

U.S. President Donald Trump addresses the American Conservative Union's annual Conservative Political Action Conference (CPAC) in National Harbor, Maryland. U.S., February 24, 2017. REUTERS/Kevin Lamarque

By Emily Stephenson and Steve Holland

NATIONAL HARBOR, Md./WASHINGTON (Reuters) – President Donald Trump said he would make a massive budget request for one of the “greatest military buildups in American history” on Friday in a feisty, campaign-style speech extolling robust nationalism to eager conservative activists.

Trump used remarks to the Conservative Political Action Conference (CPAC), an organization that gave him one of his first platforms in his improbable journey to the U.S. presidency, to defend his unabashed “America first” policies.

Ahead of a nationally televised speech to Congress on Tuesday, Trump outlined plans for strengthening the U.S. military, already the world’s most powerful fighting force, and other initiatives such as tax reform and regulatory rollback.

He offered few specifics on any initiatives, including the budget request that is likely to face a harsh reality on Capitol Hill: At a time when he wants to slash taxes for Americans, funding a major military buildup without spending cuts elsewhere would add substantially to the U.S. budget deficit.

Trump said he would aim to upgrade the military in both offensive and defensive capabilities, with a massive spending request to Congress that would make the country’s defense “bigger and better and stronger than ever before.”

“And, hopefully, we’ll never have to use it, but nobody is going to mess with us. Nobody. It will be one of the greatest military buildups in American history,” Trump said.

Appealing to people on welfare to go to work and pledging to follow through on his vow to build a wall on the U.S.-Mexican border, Trump drew rounds of applause from the large gathering of conservatives, many of them wearing hats emblazoned with the president’s campaign slogan, “Make America Great Again.”

His speech was heavy on the nationalist overtones from his campaign last year, focusing on promises to boost U.S. economic growth by retooling international trade deals, cracking down on immigration and boosting energy production.

ROCKY FIRST MONTH

Trump is looking to put behind him a rocky first month in office. An executive order he signed aimed at banning U.S. entry by people from seven Muslim-majority countries became embroiled in the courts and he had to fire his national security adviser, Michael Flynn, for Russian contacts before Trump took office.

With the federal budget still running a large deficit, Trump will have to fight to get higher military spending through Congress. In his speech, he complained about spending caps put in place on the defense budget dating back to 2011.

He also heaped criticism on what he called purveyors of “fake news,” seeking to clarify a recent tweet in which he said some in the U.S. news media should be considered an “enemy of the people.”

He said his main beef was the media’s use of anonymous sources. “They shouldn’t be allowed to use sources unless they use somebody’s name. Let their name be out there,” Trump said.

His comments came on the same day CNN reported that White House Chief of Staff Reince Priebus asked FBI Deputy Director Andrew McCabe to deny a Feb. 14 report in the New York Times that said Trump’s presidential campaign advisers had been in frequent contact with Russian intelligence officers. The request came after McCabe told him privately the report was wrong.

A senior administration official said on Friday that FBI Director James Comey told Priebus later that the story was not accurate. Priebus asked if the Federal Bureau of Investigation could set the record straight, but Comey said the bureau could not comment, the official said.

Trump has repeatedly chosen to make news media criticism a focus of his public remarks since taking office on Jan. 20.

The speech allowed Trump to put his stamp firmly on the conservative political movement, even as some activists fretted that his immigration and trade policies go too far.

With Trump in the White House and Republicans holding majorities in both houses of Congress, CPAC and the thousands of conservative activists who flock to the event each year from across the country are seeing their political influence rising.

(Additional reporting by Richard Cowan; Editing by Kevin Drawbaugh and Jonathan Oatis)

Duterte targets Philippine children in bid to widen drug war

boys undergoing drug rehabilitation in Philippines

By Clare Baldwin and Andrew R.C. Marshall

MANILA (Reuters) – Before Rodrigo Duterte’s bloody war on drugs had even begun, allies of the Philippines president were quietly preparing for a wider offensive. On June 30, as Duterte was sworn in, they introduced a bill into the Philippine Congress that could allow children as young as nine to be targeted in a crackdown that has since claimed more than 7,600 lives.

The bill proposes to lower the minimum age of criminal responsibility from 15 to 9 years old to prevent what it calls “the pampering of youthful offenders who commit crimes knowing they can get away with it.”

“You can ask any policeman or anyone connected with the law enforcement: We produce a generation of criminals,” Duterte said in a speech in Manila on December 12. Young children, he said, were becoming drug runners, thieves and rapists, and must be “taught to understand responsibility.”

The move to target children signals Duterte’s determination to intensify his drug war, which faces outrage abroad and growing unease at home. The president’s allies say his support in Congress will ensure the bill passes the House of Representatives by June.

The House would approve the bill “within six months,” said Fredenil Castro, who co-authored the legislation with the speaker of the House, Pantaleon Alvarez. It might face opposition in the Senate, but would prevail because of Duterte’s allies there, added Castro.

National police chief Ronald Dela Rosa recently announced that he was suspending anti-narcotics operations, which have killed more than 2,500 people, while the force rids itself of corrupt cops. The announcement came after it emerged last month that drug squad officers had killed a South Korean businessman at national police headquarters.

The killing of drug suspects has continued, albeit at a slower pace, with most following the pattern of killings that police have blamed on vigilantes. Human rights monitors believe vigilantes have killed several thousand people and operate in league with the police – a charge the police deny.

Duterte has signaled he intends to continue his drug war. In late January, he said the campaign would run until his presidency ends in 2022.

‘IN CAHOOTS WITH DRUG USERS’

Lowering the age of criminality was justified, Castro told Reuters, because many children were “in cahoots with drug users, with drug pushers, and others who are related to the drug trade.” He said he based his support for the bill on what he saw from his car and at churches – children begging and pickpocketing. “For me, there isn’t any evidence more convincing than what I see in every day of my life,” he said.

A controversial bill to restore the death penalty, another presidential priority, is also expected to pass the House of Representatives by mid-year, according to Duterte allies in Congress.

Supporters of the bill to lower the age of criminality say holding young children liable will discourage drug traffickers from exploiting them. Opponents, including opposition lawmakers and human rights groups, are appalled at a move they say will harm children without evidence it will reduce crime.

There is also resistance inside Duterte’s administration. A member of Duterte’s cabinet who heads the Department of Social Welfare and Development opposes the move. And a branch of the police responsible for protecting women and children disputes the claim that children are heavily involved in the drug trade – a claim not supported by official data.

Opponents warn that lowering the age of criminality would further strain a juvenile justice system that is struggling to cope. At worst, they say, with a drug war raging nationwide, the bill could legitimize the killing of minors.

“What will stop them from targeting children?” said Karina Teh, a local politician and child rights advocate in Manila. “They are using the war on drugs to criminalize children.”

IN THE FIRING LINE

The drug-war death toll includes at least 29 minors who were either shot by unidentified gunmen or accidentally killed during police operations from July to November 2016, according to the Children’s Legal Rights and Development Center (CLRDC) and the Network Against Killings in the Philippines, both Manila-based advocacy groups.

Dela Rosa said the Philippine National Police “fully supports” the new bill. It is “true and supported by data” that minors are used by drug traffickers because they can’t be held criminally liable, the police chief said in a submission to the House of Representatives.

Some police officers working on the streets agree with Dela Rosa. In Manila’s slums, children as young as six act as lookouts for dealers, shouting “The enemy is coming!” when police approach, said Cecilio Tomas, an anti-narcotics officer in the city. By their early teens, some become delivery boys and then dealers and users, said Tomas.

Salvador Panelo, Duterte’s chief legal counsel, said the bill would protect children by stopping criminals from recruiting them. “They will not become targets simply because they will no longer be involved,” he said.

Child rights experts say the legislation could put children in the firing line. They point to the deadly precedent set in the southern city of Davao, where Duterte pioneered his hard-line tactics as mayor. The Coalition Against Summary Execution, a Davao-based rights watchdog, documented 1,424 vigilante-style killings in the city between 1998 and 2015. Of those victims, 132 were 17 or younger.

For all but three years during that period, Duterte was either Davao’s mayor or vice-mayor. He denied any involvement in the killings.

CONTRADICTORY EVIDENCE

Althea Barbon was one of the children killed in the current nationwide drug war. The four year old was fatally wounded in August when police in an anti-narcotics operation shot at her father, the two Manila-based advocacy groups said. Unidentified gunmen shot dead Ericka Fernandez, 17, in a Manila alley on October 26, police said. Her bloody Barbie doll was collected as evidence. And on December 28, three boys, aged 15 or 16, were killed in Manila by what police said were motorbike-riding gunmen.

If the bill passes, the Philippines won’t be the only country where the age of criminality is low. In countries including England, Northern Ireland and Switzerland it is 10, according to the website of the Child Rights International Network, a research and advocacy group. In Scotland, children as young as eight can be held criminally responsible, but the government is in the process of raising the age limit to 12.

Critics of the Philippines’ bill say lower age limits are largely found in countries where the legal systems, detention facilities and rehabilitation programs are more developed.

Statistics from the police and the Philippine Drug Enforcement Agency (PDEA), the government’s top anti-narcotics body, appear to contradict the Duterte camp’s claim that there is a large number of young children deeply involved in the drug trade.

There were 24,000 minors among the 800,000 drug users and dealers who had registered with the authorities by November 30, according to police statistics. But less than two percent of those minors, or about 400 children, were delivering or selling drugs. Only 12 percent, or 2,815, were aged 15 or younger. Most of the 24,000 minors were listed as drug users.

The number of minors involved in the drug trade is “just a small portion,” said Noel Sandoval, deputy head of the Women and Children’s Protection Center (WCPC), the police department that compiled the data.

The WCPC is not pushing to lower the minimum age of criminal responsibility, said Sandoval, but if the age is to be lowered, his department recommends a minimum age of 12, not 9.

Between January 2011 and July 2016, 956 children aged six to 17 were “rescued nationwide from illegal drug activity,” according to PDEA. They were mostly involved with marijuana and crystal methamphetamine, a highly addictive drug also known as shabu, and were handed over to the Department of Social Welfare and Development (DSWD). Of these, only 80 were under the age of 15.

MORE DETENTIONS

Asked for evidence that younger children are involved in the drug trade, Duterte’s legal counsel Panelo said the president had data from “all intelligence agencies.” Panelo declined to disclose those numbers.

Among the opponents of the bill is a member of Duterte’s cabinet, Judy Taguiwalo, secretary of the DSWD. The legislation runs counter to scientific knowledge about child development and would result not in lower crime rates but in more children being detained, Taguiwalo wrote in a letter to the House of Representatives in October.

Hidden by a high wall topped with metal spikes, the Valenzuela youth detention center in northern Manila is already operating at twice its capacity. Its 89 boys eat meals in shifts – the canteen can’t hold them all at once – and sleep on mats that spill out of the spartan dorms and into the hallways.

The government-run center, which currently houses boys aged 13 to 17 for up to a year, is considered a model facility in the Philippines. Even so, said Lourdes Gardoce, a social worker at the Valenzuela home, “It’s a big adjustment on our part if we have to cater to kids as young as nine.”

(Reporting by Clare Baldwin and Andrew R.C. Marshall. Edited by David Lague and Peter Hirschberg.)

Trump tells Republican lawmakers: Enough talk. Time to deliver

Donald Trump speaking to Congress

By Richard Cowan and Susan Cornwell

PHILADELPHIA (Reuters) – President Donald Trump pushed Republican lawmakers on Thursday for swift action on a sweeping agenda including his planned U.S.-Mexican border wall, tax cuts and repealing the Obamacare law, despite tensions over timetables and priorities.

Congressional Republicans were in Philadelphia for a three-day retreat to hammer out a legislative agenda, with the party in control of the White House, Senate and House of Representatives for the first time in a decade.

“This Congress is going to be the busiest Congress we’ve had in decades, maybe ever,” Trump said in a speech to the lawmakers at a Philadelphia hotel.

“Enough ‘all talk, no action.’ We have to deliver,” Trump added.

But Trump did not hold an expected question-and-answer session with the lawmakers, and his speech veered into side issues such as predicting crowd size for an anti-abortion march in Washington, alleging American voting irregularities and touting winning Pennsylvania in the Nov. 8 election.

House of Representatives Speaker Paul Ryan, who initially hesitated in endorsing Trump last year and has criticized him on some issues, disputed the notion that congressional Republicans were not in synch with the New York businessman who was sworn in less than a week ago having never previously held public office.

“We are on the same page with the White House,” Ryan said during a joint news conference with Senate Majority Leader Mitch McConnell.

“This is going to be an unconventional presidency,” Ryan added. “I think you know this by now. … I think we’re going to see unconventional activities like tweets and things like that. I think that’s just something that we’re all going to have to get used to.”

Trump pressed the lawmakers for action on repealing and replacing Democratic former President Barack Obama’s Affordable Care Act, known as Obamacare, even as Republicans scramble to devise a replacement plan, and lowering taxes on “all American businesses” and the middle class.

For weeks, Republicans talked about formulating an agenda for the first 100 days of Trump’s presidency. In recent days, the talk has turned into a 200-day agenda for passing major legislation before the lawmakers’ August recess.

“It’s going to take more than simply 100 days,” Ryan said.

Ryan said that it is “our goal is to get these laws done in 2017,” without guaranteeing that a replacement for Obamacare and a tax reform bill would be enacted by the end of December.

McConnell said lawmakers will take up legislation to provide $12 billion to $15 billion to pay for Trump’s planned wall along the U.S.-Mexico border. Trump signed an executive order on Wednesday for the wall to proceed, part of a package of measures aimed at curbing illegal immigration, although the action has tested already frayed relations with Mexico.

House Republican leader Kevin McCarthy said the pace of legislative action may frustrate Trump.

“President Trump comes from a different world,” McCarthy told reporters. “Out in the business community, he likes things done fast, and he’s going to continue to push them.”

PROTESTS IN PHILADELPHIA

Thousands of anti-Trump protesters took to the streets in Philadelphia, a heavily Democratic bastion that is one of the cities that could be stripped of federal funds for protecting illegal immigrants under a Trump directive.

Marchers carried signs including, “Fascist Pig,” “Protect My Health Care,” “Immigration Makes America Great,” “Planet Over Profit” and “Impeach Trump.”

During his speech, Trump took time to explain his side of the story on Mexico’s president canceling a meeting next week because of Trump’s insistence that America’s southern neighbor eventually pay for the wall. Mexico has said it will not.

Trump said a tax reform bill “will reduce our trade deficits, increase American exports and will generate revenue from Mexico that will pay for the wall, if we decide to go that route.”

McConnell and Ryan did not say whether Congress would offset the wall’s cost by cutting other programs or simply add to huge budget deficits that Republicans have criticized for years.

Ryan and McConnell also indicated congressional Republicans do not plan to modify U.S. law banning torture even as Trump considers bringing back a CIA program for holding terrorism suspects in secret overseas “black site” prisons where interrogation techniques often condemned as torture were used.

“I think the director of the CIA (Mike Pompeo) has made it clear he’s going to follow the law. And I believe virtually all of my members are comfortable with the state of the law on that issue now,” McConnell said.

“Torture’s not legal,” Ryan said. “And we agree with it not being legal.

In a highly unusual move for a visiting foreign leader, British Prime Minister Theresa May, who will see Trump in Washington on Friday, addressed the retreat, calling herself a “fellow conservative who believes in the same principles that underpin the agenda of your party.”

She was loudly applauded for praising Trump’s victory.

“Because of what you have done together, because of that great victory you have won, America can be stronger, greater, and more confident in the years ahead,” May said.

(Additional reporting by David Morgan and Doina Chiacu; Writing by Will Dunham; Editing by Frances Kerry and Cynthia Osterman)

U.S. Senate approves measure launching Obamacare repeal process

The federal government forms for applying for health coverage are seen at a rally held by supporters of the Affordable Care Act, widely referred to as "Obamacare", outside the Jackson-Hinds Comprehensive Health Center in Jackson, Mississippi, U.S

By Susan Cornwell

WASHINGTON (Reuters) – The U.S. Senate on Thursday took a first concrete step toward dismantling Obamacare, voting to instruct key committees to draft legislation repealing President Barack Obama’s signature health insurance program.

The resolution, passed in the early hours of Thursday in a 51-48 vote, now goes to the House of Representatives, which is expected to vote on it this week. Scrapping Obamacare is a top priority for Republican President-elect Donald Trump and the Republican majorities in both chambers.

Republicans have said the process of repealing Obamacare could take months, and developing a replacement plan could take longer. But they are under pressure from Trump to act fast after he said on Wednesday that the repeal and replacement should happen “essentially simultaneously.”

Some 20 million previously uninsured Americans gained health coverage through the Affordable Care Act, as Obamacare is officially called. Coverage was extended by expanding Medicaid and through online exchanges where consumers can receive income-based subsidies.

Republicans have launched repeated legal and legislative efforts to unravel the law, criticizing it as government overreach. They say they want to replace it by giving states, not the federal government, more control.

But in recent days some Republicans have expressed concern about the party’s current strategy of voting for a repeal without having a consensus replacement plan ready.

House Speaker Paul Ryan said this week he wants to pack as many replacement provisions as possible into the legislation repealing Obamacare. But Senate Finance Committee Chairman Orrin Hatch, also a Republican, said that could be difficult under Senate rules.

The resolution approved Thursday instructs committees of the House and Senate to draft repeal legislation by Jan. 27. Both chambers will then need to approve the resulting legislation before any repeal goes into effect.

Senate Republicans are using special budget procedures that allow them to repeal Obamacare by a simple majority so that they will not need Democratic votes. Republicans have 52 votes in the 100-seat Senate. One Republican, Senator Rand Paul, voted no on Thursday.

Democrats mocked the Republican effort, saying Republicans have never united around an alternative to Obamacare. “They want to kill ACA but they have no idea how they are going to bring forth a substitute proposal,” said Senator Bernie Sanders of Vermont, an independent who caucuses with the Democrats.

On Wednesday, Trump said he would submit a replacement plan as soon as his nominee to lead the Health and Human Services Department, Representative Tom Price, is approved by the Senate. Trump gave no details.

Trump senior adviser Kellyanne Conway praised lawmakers for clearing the way for repeal and said the replacement effort will likely tackle medication costs.

“To repeal and replace Obamacare and not have a conversation about drug pricing seems not like a very reasonable prospect and not (a) responsible prospect,” Conway told Bloomberg Television on Thursday, one day after Trump targeted the pharmaceutical industry, a traditional Republican ally.

Democrats passed the Affordable Care Act in 2010 over united Republican opposition. Democrats say the act is insuring more Americans and helping to slow the growth in healthcare spending.

But Republicans say the system is not working. The average Obamacare premium is set to rise 25 percent in 2017.

(Reporting by Susan Cornwell; Additional reporting by Susan Heavey; Editing by Nick Macfie and Bill Trott)

Congress begins Russia hacking probe, Trump still skeptical of U.S. intelligence

Donald Trump

By Dustin Volz

WASHINGTON (Reuters) – Senior U.S. intelligence officials will testify in Congress on Thursday on Russia’s alleged cyber attacks during the 2016 election campaign, even as President-elect Donald Trump casts doubt on intelligence agencies’ findings that Moscow orchestrated the hacks.

The hearings come a day before Trump is due to be briefed by intelligence agency chiefs on hacks that targeted the Democratic Party.

Trump is heading for a conflict over the issue with Democrats and fellow Republicans in Congress, many of whom are wary of Moscow and distrust the New York businessman’s praise of Russian President Vladimir Putin and efforts to heal the rift between the United States and Russia.

Director of National Intelligence James Clapper, National Security Agency Director Mike Rogers and Undersecretary of Defense for Intelligence Marcel Lettre are expected to appear before the Senate Armed Services Committee, which is chaired by Republican John McCain, a vocal critic of Putin.

Their testimony on cyber threats facing the United States will come a week after President Barack Obama ordered the expulsion of 35 Russian suspected spies and imposed sanctions on two Russian intelligence agencies over their alleged involvement in hacking U.S. political groups in the 2016 election.

U.S. intelligence agencies say Russia was behind hacks into Democratic Party organizations and operatives before the presidential election, a conclusion supported by several private cybersecurity firms. Moscow denies the hacking allegations.

U.S. intelligence officials have also said the Russian cyber attacks aimed to help Trump defeat Democrat Hillary Clinton in the Nov. 8 election. Several Republicans acknowledge Russian hacking during the election but have not linked it to an effort to help Trump win.

Documents stolen from the Democratic National Committee and John Podesta, Clinton’s campaign manager, were leaked to the media in advance of the election, embarrassing the Clinton campaign.

In a tweet on Wednesday, Trump said: “(WikiLeaks founder) Julian Assange said ‘a 14 year old could have hacked Podesta’ – why was DNC so careless? Also said the Russians did not give him the info!”

Trump also quoted Assange as telling Fox News that U.S. media coverage of the matter was “very dishonest.”

He and top advisers believe Democrats are trying to delegitimize his election victory by accusing Russian authorities of helping him.

FIRMER RESPONSE URGED

Some lawmakers, including McCain, said a firmer response was needed to check Russian aggression in cyberspace and elsewhere. He is among a handful of Republicans to join Democrats in pushing for a special committee to investigate Russia’s political hacking, although that effort has lost traction in the face of opposition from Republican leaders in Congress.

Obama instructed U.S. intelligence agencies last month to conduct a full review of the election hacks. That review could be completed and delivered to Obama as soon as Thursday, said sources familiar with the matter.

Five Democratic senators introduced legislation on Wednesday calling for the creation of an independent, nonpartisan commission to investigate Russian interference in the election.

Trump has also nominated people seen as friendly toward Moscow to senior administration posts, including secretary of state nominee Rex Tillerson, who while Exxon Mobil chief executive, was awarded the Order of Friendship, a Russian state honor, by Putin in 2013.

Rogers, the NSA chief, visited the president-elect in New York in November and is among a handful of people being considered by Trump to succeed the retiring Clapper as U.S. spy chief, in addition to former Republican Senator Dan Coats, according to sources familiar with the matter.

The Senate Foreign Relations Committee will also hold a closed-door hearing on Thursday to examine Russia’s alleged hacking and harassment of U.S. diplomats.

(Additional reporting by Patricia Zengerle and Mark Hosenball in Washington; Editing by Yara Bayoumy and Peter Cooney)

U.S. to disclose estimate of Americans under surveillance by early 2017

An undated aerial handout photo shows the National Security Agency (NSA) headquarters building in Fort Meade, Maryland.

By Dustin Volz

WASHINGTON (Reuters) – The U.S. intelligence community has committed to providing as soon as next month a public estimate of the number of U.S. persons whose electronic communications are ensnared under a surveillance authority intended for foreign espionage, according to a bipartisan group of congressional lawmakers’ letter that Reuters saw.

The decision would reverse the government’s longstanding position that calculating such a number may be technically impossible and would require privacy intrusions exceeding those raised by the actual surveillance programs.

It also comes as Congress is expected to begin debate in the coming months over whether to reauthorize or reform the surveillance authority, known as Section 702, a provision that was added to the Foreign Intelligence Surveillance Act in 2008.

The letter, sent on Friday to National Intelligence Director James Clapper, said his office and National Security Agency officials had briefed congressional staff about how the intelligence community intends to comply with the lawmakers’ disclosure request.

Clapper’s office did not immediately respond to a request for comment.

The 11 lawmakers, all members of the U.S. House Judiciary Committee, termed their letter an effort to “memorialize our understanding” of the intelligence community’s plan to provide an estimate in real numbers, not percentages, as soon as January that can be shared with the public.

“The timely production of this information is incredibly important to informed debate on Section 702 in the next Congress— and, without it, even those of us inclined to support re-authorization would have reason for concern,” the letter said.

Section 702 will expire on December 31, 2017, absent congressional action. It enables two internet surveillance programs called Prism and Upstream that were revealed in a series of leaks by former NSA contractor Edward Snowden more than three years ago.

Intelligence officials have said that data about Americans is “incidentally” collected under Section 702, due to a range of technical and practical reasons. Critics have assailed such collection as back-door surveillance of Americans without a warrant.

Clapper, who is stepping down next month, suggested in April that providing an estimate of Americans surveilled under Section 702, a figure some have said could tally in the millions, might be possible, while defending the law as “a prolific producer of critical intelligence.”

Republicans James Sensenbrenner, Darrell Issa, Ted Poe and Jason Chaffetz signed the letter, in addition to Democrats John Conyers, Jerrold Nadler, Zoe Lofgren, Hank Johnson, Ted Deutch, Suzan DelBene and David Cicilline.

(Reporting by Dustin Volz; Editing by Lisa Von Ahn)