Tag Archives: Congress

Russia’s Putin, despite sanctions, still hopes for better U.S. ties

MOSCOW (Reuters) – Russian President Vladimir Putin still hopes to pull Moscow’s ties with Washington out of a deep crisis, but nobody will go into mourning if this ambition is not reciprocated by the United States, the Kremlin said on Monday.

Moscow is bracing itself for a slew of new U.S. sanctions despite Putin meeting U.S. President Donald Trump at a summit in Helsinki in July, an encounter both sides said went well.

Initial Russian triumphalism after the summit turned sour however as anger over what some U.S. lawmakers saw as an over deferential Trump performance galvanized a new sanctions push.

The U.S. State Department has said it will impose fresh sanctions by the end of this month, while bi-partisan legislation from senators calls for other curbs to be widened.

Moscow is also bracing itself for potential U.S. measures designed to frustrate its Nord Stream 2 gas pipeline project.

Kremlin spokesman Dmitry Peskov told reporters on a conference call that the new U.S. sanctions proposals were unfriendly, illegal and would harm world trade.

“Let’s wait and see what will happen, if anything,” said Peskov, saying any Russian response would be dictated by Russia’s own national interests.

“The Russian president is hoping for the best and, despite all this, wants to pull our bilateral ties out of the deep crisis they are in. He (Putin) still has that desire. But at the same time, nobody plans to go into mourning if our approach is not reciprocated by Washington.”

(Reporting by Tom Balmforth and Polina Ivanova; Editing by Andrew Osborn)

Trump backs down, signs order to end family separations at U.S. border

U.S. President Donald Trump signs an executive order on immigration policy in the Oval Office of the White House in Washington, U.S., June 20, 2018. REUTERS/Leah Millis

By Roberta Rampton and Steve Holland

WASHINGTON (Reuters) – U.S. President Donald Trump backed down on Wednesday on an immigration policy that sparked outrage at home and abroad, signing an executive order to end the separation of children from their parents when immigrant families are caught crossing the U.S.-Mexico border illegally.

The order requires that immigrant families be detained together when they are caught entering the country illegally, although it was not immediately clear for how long.

It also moves parents with children to the front of the line for immigration proceedings. The order does not end a “zero tolerance” policy that calls for criminal prosecution of immigrants crossing the border illegally.

“It’s about keeping families together while at the same time making sure that we have a very powerful, very strong border,” Trump said as he signed the order in a hastily arranged Oval Office gathering.

Videos of youngsters in cages and an audiotape of wailing children had sparked anger in the United States from groups ranging from clergy to influential business leaders, as well as condemnation from abroad, including Pope Francis.

Trump, a frequent viewer of cable television newscasts, had recognized the family separation issue was a growing political problem, White House sources said. First lady Melania Trump, in private conversations with the president, urged him to do something, a White House official said.

“The first lady has been making her opinion known to the president for some time now, which was that he needed to do all he could to help families stay together,” an official said.

Wednesday’s move marked a rare instance since Trump took office in January 2017 in which he has changed course on a controversial policy, rather than digging in.

Trump has made a tough stance on immigration central to his presidency. In recent days, the Republican president had insisted his hands were tied by law on the issue of family separations and had sought to blame Democrats, although it was his administration that implemented the policy of strict adherence to immigration law.

The Republican-controlled U.S. Congress is also considering legislation to address the issue. The House of Representatives planned to vote on Thursday on two bills designed to halt the practice of separating families and to address other immigration issues.

But Republicans said they were uncertain if either measure would have enough support to be approved. Trump told House Republicans on Tuesday night he would support either of the immigration bills under consideration but did not give a preference.

(Reporting by Roberta Rampton, Susan Cornwell, Amanda Becker and Mohammad Zargham; Writing by John Whitesides; Editing by Kevin Drawbaugh, Bill Trott and Frances Kerry)

Trump says would back both House immigration bills as separation crisis grows

U.S. President Donald Trump speaks briefly to the news media after leaving a closed House Republican Conference meeting with House Majority Leader Kevin McCarthy (R-CA) at the U.S. Capitol in Washington, D.C., U.S., June 19, 2018. REUTERS/Leah Millis

By Sarah N. Lynch and Susan Cornwell

WASHINGTON (Reuters) – U.S. President Donald Trump told Republican lawmakers on Tuesday he would back either of the immigration bills making their way through the House of Representatives, as the outcry grew over his administration’s separation of immigrant parents and children at the U.S.-Mexico border.

Representative Mark Meadows said Trump told Republican members of the House at a meeting on Capitol Hill that they needed to get something done on immigration “right away.”

In the meeting, Trump said separating families was “certainly not an attractive thing and does look bad,” added Representative Tom Cole.

Congressional Republicans have been scrambling to craft legislation as videos of youngsters in cages and an audiotape of wailing children have sparked anger at home from groups ranging from clergy to influential business leaders, as well as condemnation abroad.

A Reuters/Ipsos national opinion poll released on Tuesday showed fewer than one in three American adults supporting the policy. The June 16-19 poll found that 28 percent of people polled supported the policy, while 57 percent opposed it and the remaining 15 percent said they did not know.

Trump, who has made a tough stance on immigration a centerpiece of his presidency, has staunchly defended his administration’s actions. He has cast blame for the family separations on Democrats, although his fellow Republicans control both chambers in Congress and his own administration implemented the current policy of strict adherence to immigration laws.

The president has sought to link an end to the family separations to passage of a wider bill on immigration, which would include funding for his long-sought border wall with Mexico, prompting Democrats to accuse him of using children as hostages.

“In his remarks, he endorsed both House immigration bills that build the wall, close legal loopholes, cancel the visa lottery, curb chain migration, and solve the border crisis and family separation issue by allowing for family detention and removal,” White House spokesman Raj Shah said of Trump.

An unidentified person yelled an obscenity at the president before he entered the meeting.

Earlier on Tuesday, the president tried again to blame Democrats for what he called “loopholes” in the law that require families detained for entering the country illegally either to be separated or released.

“These are crippling loopholes that cause family separation, which we don’t want,” he said in remarks to the National Federation of Independent Business, adding he wanted Congress to give him the legal authority to detain and deport families together.

A U.S. border patrol truck drives along the border fence with Mexico and pass the Christo Rey Statue on Mt. Chirsto in Sunland Park, New Mexico, U.S. June 18, 2018. REUTERS/Mike Blake

A U.S. border patrol truck drives along the border fence with Mexico and pass the Christo Rey Statue on Mt. Chirsto in Sunland Park, New Mexico, U.S. June 18, 2018. REUTERS/Mike Blake

BILL WOULD PREVENT SOME SEPARATIONS

House Republicans were working on a revised draft of one version of an immigration overhaul that would prevent family separations in some cases for those attempting an illegal border crossing for the first time, according to a House Republican aide.

The draft bill was seen just days ago as unlikely to pass, but has gained support in the House, and it was unclear whether the new language about preventing family separations would improve its chances for passage.

Both Republican bills under discussion, which have been blasted by Democrats and immigration advocacy groups, would fund the border wall and reduce legal migration, in part by denying visas for some relatives of U.S. residents and citizens who are living abroad, sometimes referred to as “chain migration.”

The more conservative bill from Representative Bob Goodlatte would also deny “Dreamers,” immigrants brought illegally to the United States as children, the chance of future citizenship.

Several hundred protesters marched in New York City, chanting “Keep families together!”

Anne Heaney, 74, a retired teacher, held a sign that read, “Children do not belong in cages. Maybe Trump and Pence do.”

In Washington, activists stood next to a table occupied by Department of Homeland Security Secretary Kirstjien Nielsen in a Mexican restaurant, voicing criticism of the administration’s policy, according to video obtained by Reuters.

Two top U.S. business groups, the U.S. Chamber of Commerce and the Business Roundtable, decried the separation policy on Tuesday and called for its immediate cessation.

“My heart goes out to the impacted families,” said JPMorgan Chase & Co Chief Executive Jamie Dimon, who chairs the Business Roundtable, in a memo to the bank’s employees. “Fixing these issues will clearly boost the economy,” he added.

Apple Chief Executive Tim Cook described the separation of children from parents at the U.S.-Mexico border as “inhumane” and promised to be a “constructive voice” in seeking to end the issue, the Irish Times newspaper reported.

Microsoft Corp CEO Satya Nadella called the policy cruel and abusive in an email to employees that was posted on Linkedin.com. He also said the company is not working on any projects with the U.S. government related to separating children from their families at the border.

U.S. Customs and Border Protection said on Tuesday that 2,342 children had been separated from their parents at the U.S.-Mexico border between May 5 and June 9.

The separations began after Attorney General Jeff Sessions announced in April that all immigrants apprehended while crossing the U.S.-Mexico border illegally should be criminally prosecuted.

Parents who are referred by border agents for prosecution are held in federal jails, while their children are moved into border shelter facilities under the custody of the Office of Refugee Resettlement, a Department of Health and Human Services agency.

LEGISLATIVE POSSIBILITIES

A number of Republican senators called on Trump on Tuesday to allow families to stay together if they had crossed the border illegally, and Senate leaders said their chamber could have legislation to address the family separations matter in a matter of days.

Senate Majority Leader Mitch McConnell said: “We hope to reach out to the Democrats and see if we can get a result, which means making a law and not just get into some kind of sparring back and forth that leads to no conclusion,” he said.

Top Democrats contended that Trump could change the policy with the stroke of a pen.

“The president is trying set this trap in the public mind that somehow there is a law requiring him to do this and Congress can undo it,” said Senator Chris Van Hollen, who visited a detention center in Brownsville, Texas, over the weekend. “We know this is a problem that was manufactured six weeks ago, and we’re seeing the awful results today.”

Decrying “internment camps,” Democrats and their supporters disrupted a U.S. congressional hearing on Tuesday about an FBI probe.

With the sound of a young child crying in the background, the top Democrat on the House of Representatives Judiciary Committee, Jerrold Nadler, broke from traditional protocol and started reading from a statement, saying: “These children are not animals.” His Republican colleagues tried to shout over him: “Out of order!”

(Reporting by Sarah N. Lynch and Susan Cornwell; Additional reporting by David Morgan, Amanda Becker, Tim Ahmann, Makini Brice, Doina Chiacu and Lisa Lambert in Washington, Alice Popovici in New York, Richard Lough in Paris and Tom Miles in Geneva; Writing by Doina Chiacu and Dan Burns; Editing by Frances Kerry and Peter Cooney)

U.S. House panel approves work requirement for welfare

The Capitol dome is seen amongst blooming flowers in Washington, U.S., April 26, 2018. REUTERS/Aaron P. Bernstein

By Susan Cornwell

WASHINGTON (Reuters) – Welfare beneficiaries would have to work or get job training under legislation approved by a U.S. Congress committee on Thursday, part of a broader Republican effort to impose work rules on Americans getting public assistance.

The House of Representatives Ways and Means Committee voted along party lines to approve the changes to the Temporary Assistance for Needy Families (TANF) program, which provides federal block grants to states for cash aid for needy families.

The Republican proposal will go next to the House floor for a vote. If approved there, it would go to the Senate, where its outlook is uncertain because of Democratic opposition.

Republicans control both chambers of Congress, but only have a narrow majority in the Senate.

Last year, the TANF program assisted 1.1 million families. It has an annual budget of about $16.5 billion, which Republican President Donald Trump has proposed cutting.

The legislation aligns with other Trump administration and congressional Republican attempts to rein in spending on social programs. It would require all work-eligible TANF beneficiaries to work or do job training or community service, instead of just 50 percent of them, as is the rule under current law.

“States are going to have to engage everyone who is work eligible with a game plan,” said committee chairman Kevin Brady.

Under the legislation, states failing to meet program targets could be penalized by federal funding cuts. The bill would fund the program for five years at current levels, aides said.

Democrats said childcare provisions and the program overall were insufficient. TANF funding has not increased for two decades, not even for inflation, since it was adjusted under then-president Bill Clinton, a Democrat. It has lost over one-third of its value over time.

“Could it be that Republicans aren’t interested in helping people succeed, but just want to advance an extreme ideological agenda?” asked Democratic Representative Joe Crowley. “That’s what’s really going on here.”

Another piece of Republican legislation pending in the House would impose tighter work requirements on recipients of food stamps under the Supplemental Nutrition Assistance Program (SNAP).

The Trump administration has also taken steps to push public health and house assistance recipients into work. It is allowing states to require that Medicaid recipients work as a condition of receiving health insurance. Last month, Housing and Urban Development Secretary Ben Carson also proposed encouraging those receiving housing subsidies to work.

(Reporting by Susan Cornwell; Editing by Kevin Drawbaugh and Rosalba O’Brien)

France’s Macron visits Trump as Iran nuclear deal hangs in balance

FILE PHOTO: U.S. President Donald Trump meets French President Emmanuel Macron in New York, U.S., September 18, 2017. REUTERS/Kevin Lamarque/File Photo

By Steve Holland

WASHINGTON (Reuters) – French President Emmanuel Macron arrives in Washington on Monday for a state visit likely to be dominated by differences over trade and the nuclear accord with Iran.

As Macron headed west, the Iranian government urged European leaders to convince U.S. President Donald Trump not to tear up the 2015 deal between Tehran and six world powers. Allies also spoke out in support of it.

Macron said on Sunday there was no “Plan B” for keeping a lid on Tehran’s nuclear ambitions.

He is on something of a rescue mission for what is formally known as the Joint Comprehensive Plan of Action (JCPOA), which Trump has said he will scrap unless European allies fix what he called “terrible flaws” by mid-May.

Iranian Foreign Minister Mohammad Javad Zarif called on European leaders to support it.

“It is either all or nothing. European leaders should encourage Trump not just to stay in the nuclear deal, but more important to begin implementing his part of the bargain in good faith,” Zarif wrote on his Twitter account.

The deal reached between six powers – all of whom but Germany are nuclear-armed – and Tehran put curbs on Iran’s nuclear program in exchange for sanctions relief.

Macron said on Fox News Sunday that it would be better to protect the deal instead of to get rid of it as there was no other plan.

“Is this agreement perfect and this JCPOA a perfect thing for our relationship with Iran?  No. But for nuclear — what do you have? As a better option? I don’t see it,” he said.

CHARM OFFENSIVE

Macron’s visit is the first time Trump has hosted a state visit since he took power in January 2017. While the French leader has tried to develop a close relationship with Trump since he took office in May, he has so far seen little tangible results on issues from Iran to climate politics.

The two men will get a sense of their two countries’ shared history during an evening meal on Monday night at Mount Vernon, the home of George Washington, the first U.S. president and Revolutionary War commander whose alliance with France was critical to victory over the British.

Working meetings will be held at the White House on Tuesday before Macron addresses Congress the following day, the anniversary of the day that French General Charles de Gaulle addressed a Joint Session of Congress in 1960.

Trump and the 40-year-old French leader began their friendship a year ago in Belgium with a jaw-clenching handshake. While some other European leaders have kept a certain distance from Trump, Macron has worked hard to remain close to the U.S. president and the two leaders speak frequently by phone.

TRADE TALKS

Highlighting the difficulties Macron will face reversing Trump’s mind on Iran, U.S. non-proliferation envoy Christopher Ford said Tehran presented a very real long-term challenge.

“Iran (is) a country that for years illegally and secretly sought to develop nuclear weapons, suspended its weaponization work only when confronted by the potentially direst of consequences without ever coming clean about its illicit endeavors,” he told a non-proliferation conference in Geneva.

Iran has long maintained that its nuclear programme was for peaceful purposes.

Macron also wants to persuade Trump to exempt European nations from metal tariffs that are part of the U.S. president’s plan to reduce chronic trade deficits with countries around the world, chiefly China.

His visit comes at a time of mounting alarm in Europe over the knock-on effect that U.S. sanctions on Russia will have on their own manufacturing industries.

French officials said Paris and other European governments were coordinating efforts to persuade Trump to ease sanctions on Russia, including measures against Russian aluminum producers.

“There are concerns raised by the extraterritoriality effects of the new sets of sanctions,” a French finance ministry source said. “Europeans…have jointly warned the US Administration about the economic impact and consequences and the need to find solutions.”

The official said France, Germany, Italy and Ireland were working together on the matter. German Chancellor Angela Merkel will hold talks with Trump in Washington later in the week.

Macron and Trump are also due to discuss Syria, less than two weeks after the United States, France and Britain launched airstrikes in Syria in retaliation for a suspected chemical weapons attack that killed dozens in Douma, Syria.

Macron said last week that he believed he had persuaded Trump to keep U.S. troops in Syria, though Trump has been insistent on bringing them home.

(Reporting By Steve Holland in Washington, Michel Rose and Richard Lough in Paris, Tom Miles in Geneva and Parisa Hafezi in Ankara; Editing by Richard Balmforth)

Trump threatens aid for Honduras, other nations over ‘caravan’

U.S. President Donald Trump arrives for the Easter service at Bethesda-by-the-Sea Episcopal Church in Palm Beach, Florida, U.S., April 1, 2018. REUTERS/Yuri Gripas

WASHINGTON (Reuters) – President Donald Trump said on Tuesday U.S. foreign aid to Honduras and other countries was at risk unless they stop a so-called caravan of more than 1,200 Central American migrants headed to the U.S. border with Mexico.

Trump’s latest salvo against the migrants’ journey comes as the president has stepped up his immigration rhetoric in recent days and his administration has moved to further crack down on people who are in the United States illegally.

The migrants’ 2,000-mile (3,200-km) journey from the Mexico-Guatemalan border is expected to end at the U.S. border. Mexico’s government has said such caravans of mostly Central Americans, including many escaping violence in Honduras, have occurred since 2010.

Trump has already blasted Mexico and threatened to upend the North American Free Trade Agreement (NAFTA) over the caravan, and on Tuesday also raised the prospect of withholding U.S. assistance. The current trip has also put pressure on Mexican authorities ahead of the July 1 presidential election there.

“The big Caravan of People from Honduras, now coming across Mexico and heading to our ‘Weak Laws’ Border, had better be stopped before it gets there. Cash cow NAFTA is in play, as is foreign aid to Honduras and the countries that allow this to happen. Congress MUST ACT NOW!” Trump wrote in an early morning post on Twitter.

On Monday, the Republican president railed against Democrats over immigration and again pressed U.S. lawmakers to pass legislation to build his long-promised border wall between the United States and Mexico.

Despite months of efforts, no immigration deal has emerged in the Republican-led Congress, where lawmakers are not expected to pass much major legislation ahead of November’s midterm congressional elections.

(Writing by Susan Heavey; Editing by Frances Kerry)

Trump signs budget deal after raising government shutdown threat

U.S. President Donald Trump speaks, as he stands next to Congress' $1.3 trillion spending bill, during a signing ceremony, in the Diplomatic Room of the White House in Washington, D.C., U.S., March 23, 2018. REUTERS/Kevin Lamarque

By Steve Holland and Richard Cowan

WASHINGTON (Reuters) – U.S. President Donald Trump signed Congress’ newly passed $1.3 trillion budget bill on Friday, ending several hours of confusion spurred by a tweeted veto threat that raised the specter of a government shutdown.

Trump said he had signed the bill, despite his qualms on some issues, because a $60 billion increase in military spending had convinced him it was a worthwhile compromise.

“But I say to Congress I will never sign another bill like this again,” he told reporters. “I’m not going to do it again.”

White House and Capitol Hill aides had been left scrambling earlier in the day after Trump criticized the six-month spending bill, despite prior assurances from the administration that he would sign it ahead of a looming midnight deadline.

“I am considering a VETO of the Omnibus Spending Bill based on the fact that the 800,000 plus DACA recipients have been totally abandoned by the Democrats (not even mentioned in Bill) and the BORDER WALL, which is desperately needed for our National Defense, is not fully funded,” Trump wrote on Twitter at 9 a.m. EDT.

But by early afternoon, he appeared before reporters in the Diplomatic Reception Room of the White House to announce he had signed the measure.

“There are a lot of things I’m unhappy about in this bill,” he said, patting the more than 2,000 pages of the legislation stacked on a purple box beside him.

It was unclear how seriously Republican leaders took Trump’s shutdown threat. Neither Speaker Paul Ryan nor Senate Leader Mitch McConnell commented publicly on it.

Lawmakers in the Republican-dominated Senate and House of Representatives had already left Washington for a scheduled two-week spring recess, and Trump himself was scheduled on Friday to fly to Florida for a weekend at his private resort.

IMMIGRATION CONCERNS

Trump has been frustrated that Congress has not turned over funding to make good on his campaign promise to build a wall along the U.S.-Mexico border. The bill includes $1.6 billion for six month’s of work on the project but he had sought $25 billion for it.

Trump also has been at odds with Democrats in Congress over the fate of Dreamer immigrants – those brought to the United States illegally when they were children.

Trump canceled the Deferred Action for Childhood Arrivals (DACA) program that gives work permits to the Dreamers and protects them from deportation. The decision is currently tied up in court cases.

He offered to extend the protections, tied to a sweeping set of changes to immigration laws, but subsequently rejected bipartisan offers from lawmakers.

As the six-month spending budget deal was coming together, there had been reports Trump had balked at the bill and had to be persuaded by Ryan to support it.

The conservative wing of Trump’s party had panned the bill because of its spending increases and some deficit hawks cheered Trump’s Friday morning threat to veto it.

(Reporting by Richard Cowan and Steve Holland; additional reporting by Roberta Rampton, Amanda Becker, Susan Heavey and Patricia Zengerle; Editing by Bill Trott)

Trump threatens to veto spending bill, raising government shutdown risk

The U.S. Capitol building is seen in Washington, U.S., February 8, 2018. REUTERS/ Leah M

By Richard Cowan and Steve Holland

WASHINGTON (Reuters) – U.S. President Donald Trump made a surprising threat to veto Congress’ newly passed $1.3 trillion spending bill, a move that raised the specter of a possible government shutdown ahead of a midnight Friday deadline to keep federal agencies open.

In a tweet on Friday morning Trump said he was displeased about immigration issues in the bill, even though the White House had given assurances on Thursday that he would sign it. Lawmakers in the Senate and House of Representatives, which both are dominated by Trump’s fellow Republicans, had left Washington after passing the measure.

“I am considering a VETO of the Omnibus Spending Bill based on the fact that the 800,000 plus DACA recipients have been totally abandoned by the Democrats (not even mentioned in Bill) and the BORDER WALL, which is desperately needed for our National Defense, is not fully funded,” Trump wrote.

Trump has sought to make good on his campaign promise to build a wall along the U.S.-Mexico border and the bill includes $1.6 billion for six month’s of work on the project, although he had sought $25 billion for it. In a tweet on Thursday he had seemed not to have a problem with partial funding because “the rest will be forthcoming.”

Trump also has been at odds with Democrats in Congress over the fate of Dreamer immigrants – those brought to the United States illegally when they were children.

At the White House, many aides were caught by surprise by the veto threat and were scrambling for answers. There was no immediate explanation for what prompted the threat other than Trump’s frequent complaints that he felt Democrats were unwilling to move his way on immigration issues.

Trump appeared to have tweeted from the White House residence, as there is no Marine guard posted outside the door of the West Wing, which is what happens when the president is in the West Wing.

A White House official would say only that “it’s the president’s tweet” and could not answer further questions. Trump is scheduled to leave later in the day for a weekend at his private resort in Palm Beach, Florida.

There was no immediate comment from Republican leaders in Congress.

THREAT OR BLUFF?

As the six-month spending deal was coming together, there were reports Trump had balked at the deal and had to be persuaded by Republican Speaker Paul Ryan to support it.

Only minutes before Trump’s threat, Ryan had tweeted: “Our men and women in uniform have earned a pay raise. That’s why yesterday, we voted to provide the biggest pay raise for our troops in 8 years.”

Conservatives and deficit hawks in Trump’s party had panned the bill because of its spending increases. Some cheered his threat to veto it.

“Please do, Mr. President,” Republican Senator Bob Corker said on Twitter. “I am just down the street and will bring you a pen. The spending levels without any offsets are grotesque, throwing all of our children under the bus.”

Democratic lawmakers said Trump created his own crisis by canceling the Deferred Action for Childhood Arrivals (DACA) program that gives work permits to certain young immigrants and protects them from deportation. The decision is currently tied up in court cases.

Trump had agreed to extend the program if Congress agreed to sweeping changes in immigration laws and provided $25 billion to build the wall and increase border security. Democrats rejected the plan.

“NOW you care about the Dreamers Mr. President?” Democratic Representative Jan Schakowsky said on Twitter. “Six months after throwing their lives into chaos? Is this a cruel joke?”

In a hastily arranged news conference on Thursday, Trump’s budget director and top legislative aide insisted he would sign the bill and tried to cast the $1.6 billion in funding for border security as a downpayment on Trump’s wall pledge.

“It does a lot of what we wanted – not everything we wanted – but a lot of what we wanted on immigration,” White House budget director Mick Mulvaney told reporters.

(Reporting by Richard Cowan and Steve Holland; additional reporting by Roberta Rampton, Susan Heavey and Patricia Zengerle; Editing by Bill Trott)

Trump threatens to veto spending bill over DACA, border wall

WASHINGTON (Reuters) – U.S. President Donald Trump said on Friday he was considering vetoing Congress’ $1.3 trillion spending bill over immigration issues, including full funding for his proposed border wall and young ‘Dreamer’ immigrants.

“I am considering a VETO of the Omnibus Spending Bill based on the fact that the 800,000 plus DACA recipients have been totally abandoned by the Democrats (not even mentioned in Bill) and the BORDER WALL, which is desperately needed for our National Defense, is not fully funded,” Trump wrote on Twitter.

(Reporting by Susan Heavey and Justin Mitchell; Editing by Jeffrey Benkoe)

Trump signs deal to end brief government shutdown, increase U.S. spending

U.S. Senate Minority Leader Chuck Schumer (D-NY) and U.S. Senate Majority Leader Mitch McConnell (R-KY) walk to the Senate chamber on Capitol Hill in Washington, D.C., U.S., February 7, 2018.

By David Morgan, Amanda Becker and Richard Cowan

WASHINGTON (Reuters) – The U.S. Congress ended a brief government shutdown on Friday by reaching a wide-ranging deal that is expected to push budget deficits into the $1 trillion-a-year zone.

The bill passed by a wide margin in the Senate and survived a rebellion of 67 conservative Republicans in the House of Representatives thanks to the support of some Democrats. Those conservatives were mainly angry about non-military spending increases.

President Donald Trump signed the measure into law on Friday morning, ending a government shutdown that began just after midnight, when Congress was still debating the budget deal.

It was the second shutdown this year under the Republican-controlled Congress and Trump, who played little role in attempts by party leaders this week to end months of fiscal squabbling.

The deal is the fifth temporary government funding measure for the fiscal year that began Oct. 1 and replenishes federal coffers until March 23, giving lawmakers more time to write a full-year budget.

It also extends the U.S. government’s borrowing authority until March 2019, sparing Washington politicians difficult votes on debt and deficits until after mid-term congressional elections in November.

Once known as the party of fiscal conservatives, the Republicans and Trump are now quickly expanding the U.S. budget deficit and its $20 trillion national debt. Their sweeping tax overhaul bill approved in December will add an estimated $1.5 trillion to the national debt over 10 years.

Nearly $300 billion in new spending included in the bill approved on Friday will ensure the annual budget deficit will exceed $1 trillion in 2019, said the Committee for a Responsible Federal Budget, a private fiscal policy watchdog group in Washington.

Friday’s budget deal allows for $165 billion in additional defense spending over two years that will help Trump deliver on his promise to rebuild the military.

That won over many Republicans but some were still furious over the $131 billion extra made available for non-military spending, including health and infrastructure.

None of the added spending will be offset by budget savings elsewhere or revenue increases, relying instead on government borrowing. There also is no offset reduction for nearly $90 billion in new disaster aid for U.S. states and territories ravaged by hurricanes or wildfires.

PRESSURE ON MARKETS

The brief shutdown in Washington came at a sensitive time for financial markets. Stocks plunged on Thursday on heavy volume, throwing off course a nearly nine-year bull run. The S&P 500 slumped 3.8 percent.

Markets barely flinched at the last shutdown in January, but that was before a dizzying selloff that started on Jan. 30 amid concerns about inflation and higher interest rates.

Republican Senator Rand Paul, objecting to deficit spending in the bill, engaged in a nine-hour, on-again, off-again protest and floor speech late on Thursday. He had harsh words for his own party.

“Now we have Republicans hand in hand with Democrats offering us trillion-dollar deficits,” he said. “I can’t … in good faith, just look the other way because my party is now complicit in the deficits. Really who is to blame? Both parties.”

His dissent forced the brief government shutdown, underscoring the persistent inability of Congress and Trump to deal efficiently with Washington’s most basic fiscal obligation of keeping the government open.

“Republican majorities in the House and Senate have turned the process into an embarrassing spectacle, running from one crisis directly into the next,” said Democratic Representative Nita Lowey prior to the House vote.

Republican Representative Kristi Noem told Reuters she voted against the bill because it increases non-defense spending and raises the federal debt ceiling.

“To increase domestic spending and raise the debt ceiling was coupling two very bad policy decisions and with no reforms tied to it. It was very disappointing,” she said.

House Democratic leader Nancy Pelosi and others in her party had opposed the bill because Republican House leaders would not guarantee her a debate later on steps to protect about 700,000 “Dreamer” immigrants from deportation.

These young people were brought illegally to the country as children years ago, mostly from Mexico. Trump said in September he would end by March 5 former Democratic President Barack Obama’s Deferred Action for Childhood Arrivals (DACA) program that protects the Dreamers from deportation.

Trump urged Congress to act before then. Senate Republicans have pledged to hold a separate immigration debate this month.

House Speaker Paul Ryan had not offered Pelosi an equivalent promise in the House, although he said in a speech before the vote on Friday that he would push ahead for a deal.

“My commitment to working together on an immigration measure that we can make law is a sincere commitment,” he said. “We will solve this DACA problem.”

But Pelosi said Ryan’s words fell short, accusing him of not having “the courage to lift the shadow of fear from the lives of” Dreamers who face the prospect of deportation.

Minutes after midnight, when the short-lived shutdown began, the U.S. Office of Personnel Management sent a notice to millions of federal employees telling them to check with their agencies on whether they should report to work on Friday.

(Additional reporting by Eric Beech, Makini Brice, Katanga Johnson and Doina Chiacu; Writing by Kevin Drawbaugh; Editing by Matthew Mpoke Bigg and Bill Trott)