Tag Archives: Congress

Dollar edges lower versus yen before Yellen testimony; sterling off lows

A U.S. five dollar note is seen in this picture illustration June 2, 2017. REUTERS/Thomas White/Illustration

By Saikat Chatterjee

LONDON (Reuters) – The U.S. dollar fell against the yen and languished at 14-month lows against the euro on Wednesday ahead of Federal Reserve Chair Janet Yellen’s appearance in Congress to give testimony on monetary policy.

As investors sought to take profits after a recent dollar rally on the back of a broadly mixed session for risky assets, the greenback’s rise was also halted thanks to a softening of U.S. Treasury yields this week.

The dollar edged 0.4 percent lower against the yen to 113.43 <JPY=EBS> in early trades after rising more than 5 percent over the last month. It was trading at 1.14565 against the euro, its lowest level since early May. <EUR=EBS>

“The Yellen testimony remains the key event risk in today’s session but we remain optimistic about the dollar’s outlook and putting on a long position against sterling is the best way to execute that view,” said Adam Cole, head of FX strategy at RBC Capital Markets in London.

Yellen will give her semi-annual monetary policy testimony before Congress later on Wednesday and on Thursday, and investors will be parsing it for clues on when the Fed will start reducing its massive balance sheet.

Strategists at Brown Brothers Harriman don’t expect Yellen to break new ground in her testimony.

The Fed raised rates last month to a range of 1 percent to 1.25 percent and market expectations are roughly of a 50 percent probability that interest rates will rise again before the end of the year, according to the CME’s Fed watch data.

UK PROSPECTS

While there is a 50 percent probability for the Bank of England to raise interest rates too before the end of the year, markets are expecting the central bank to strike a dovish stance after recent soft data and comments from policymakers.

In an interview for a Scottish newspaper, the Press and Journal, published on Wednesday, Bank of England Deputy Governor Ben Broadbent said that while there was reason to see the bank moving towards higher rates, there were “a lot of imponderables”.

His comments pushed sterling to a two-week low against the dollar <GBD=D3> and to its lowest in eight months against the euro in early trading on Wednesday.

While subsequent wages data pulled sterling from the day’s lows, the outlook remained wary.

In other currencies, the Canadian dollar <CAD=> was slightly higher against its U.S. counterpart as investors awaited a Bank of Canada interest rate decision later on Wednesday.

(Editing by Gareth Jones)

Judge in Michigan blocks deportation of 100 Iraqis

Protesters rally outside the federal court just before a hearing to consider a class-action lawsuit filed on behalf of Iraqi nationals facing deportation, in Detroit, Michigan, U.S., June 21, 2017. REUTERS/Rebecca Cook

By Dan Levine

(Reuters) – A U.S. judge on Thursday temporarily blocked the deportation of about 100 Iraqi nationals rounded up in Michigan in recent weeks who argued that they could face persecution or torture in Iraq because they are religious minorities.

U.S. District Judge Mark Goldsmith in Michigan issued an order staying the deportation of the Iraqis for at least two weeks as he decides whether he has jurisdiction over the matter. Goldsmith said it was unclear whether the Iraqis would ultimately succeed.

The arrests shocked the close-knit Iraqi community in Michigan. Six Michigan lawmakers in the U.S. House of Representatives urged the government to hold off on the removals until Congress can be given assurances about the deportees’ safety.

The Michigan arrests were part of a coordinated sweep in recent weeks by immigration authorities who detained about 199 Iraqi immigrants around the country. They had final deportation orders and convictions for serious crimes.

The roundup followed Iraq’s agreement to accept deportees as part of a deal that removed the country from President Donald Trump’s revised temporary travel ban.

Some of those affected came to the United States as children and committed their crimes decades ago, but they had been allowed to stay because Iraq previously declined to issue travel documents for them. That changed after the two governments came to the agreement in March.

A U.S. Department of Justice spokeswoman could not immediately be reached for comment on the ruling.

Lee Gelernt, an attorney for the American Civil Liberties Union representing the Iraqis in Michigan, said: “The court’s action today was legally correct and may very well have saved numerous people from abuse and possible death.”

The U.S. government has argued that the district court does not have jurisdiction over the case. Only immigration courts can decide deportation issues, which can then only be reviewed by an appeals court, it said.

U.S. Immigration and Customs Enforcement has said that people with convictions for murder, rape, assault, kidnapping, burglary and drugs and weapons charges were among the Iraqis arrested nationwide.

The ACLU argued that many of those affected in Michigan are Chaldean Catholics who are “widely recognized as targets of brutal persecution in Iraq.”

Some Kurdish Iraqis were also picked up in Nashville, Tennessee. In a letter on Thursday, Tennessee Representative Jim Cooper, a Democrat, asked the Iraqi ambassador whether Iraq would be able to ensure safe passage for them if they were returned.

(Reporting by Dan Levine in San Francisco and Eric Walsh in Washington; Editing by David Alexander and Cynthia Osterman)

Trump under investigation for possible obstruction of justice: Washington Post

FILE PHOTO: U.S. President Donald Trump arrives at Newark International airport in Newark, NJ U.S., to spend a weekend at Trump National Golf Club in Bedminister, New Jersey, June 9, 2017. REUTERS/Yuri Gripas

WASHINGTON (Reuters) – U.S. President Donald Trump is being investigated by special counsel Robert Mueller for possible obstruction of justice, the Washington Post reported on Wednesday, citing unidentified officials.

Mueller is investigating alleged Russian interference in the 2016 U.S. presidential election and possible collusion with the Trump campaign. Former FBI Director James Comey told Congress last week he believes he was fired by Trump to undermine the agency’s Russia probe.

The Washington Post, citing five people briefed on the requests who spoke on condition of anonymity, said Dan Coats, the director of national intelligence, Mike Rogers, the head of the National Security Agency, and Richard Ledgett, the former deputy director at the NSA, had agreed to be interviewed by Mueller’s investigators as early as this week.

The obstruction of justice investigation into Trump began days after Comey was fired on May 9, according to people familiar with the matter, the Washington Post said.

Trump’s legal team quickly denounced the report on Wednesday.

“The FBI leak of information regarding the President is outrageous, inexcusable and illegal,” a spokesman for Trump’s legal team, Mark Corallo, said.

A spokesman for Mueller’s team declined to comment.

Several legal experts told Reuters that Comey’s testimony last week that Trump expected loyalty and told Comey he hoped he could drop an investigation of a former top aide could bolster obstruction of justice allegations against Trump.

Comey would not say in his testimony last week whether he thought the president sought to obstruct justice, but added it would be up to special counsel Mueller “to sort that out.”

After Comey’s testimony, Trump said he had been vindicated because his former FBI director confirmed telling Trump on three occasions that he was not under investigation.

While a sitting president is unlikely to face criminal prosecution, obstruction of justice could form the basis for impeachment. Any such step would face a steep hurdle as it would require approval by the U.S. House of Representatives, which is controlled by Trump’s fellow Republicans.

(Additional reporting by Steve Holland Nathan Layne; Reporting by Eric Beech; Editing by Howard Goller)

Gunman wounds several at congressional baseball practice in Virginia

FILE PHOTO - House Majority Whip Steve Scalise (R-LA) speaks to reporters at the U.S. Capitol, hours before an expected vote to repeal Obamacare in Washington, D.C., U.S. on May 4, 2017. REUTERS/Kevin Lamarque/File Photo

WASHINGTON (Reuters) – A gunman opened fire on Republican members of Congress during a baseball practice near Washington early on Wednesday, wounding several people including House of Representatives Majority Whip Steve Scalise before being taken into custody, police and witnesses said.

Five people were transported medically from the scene in Alexandria, the city’s police chief, Michael Brown told reporters. Two of the wounded were Capitol Hill police who were at the scene, witnesses said.

In a dramatic blow-by-blow account, Representative Mo Brooks of Alabama told CNN the gunman was armed with a rifle and appeared to be a white male.

Brooks said he saw the man only for a second, and that he was shooting from a chain link fence behind the third base position on the field where the congressional group was holding an early morning morning practice ahead of a game against Democrats this week.

“There must have been 50 to 100 shots fired,” he told CNN. “I hear Steve Scalise over near second base scream. He was shot,” said Brooks, adding he helped apply a tourniquet with his belt to a congressional staffer who was shot in the leg.

“One of our security detail was shooting back, but it was our pistol versus the shooter’s rifle,” Brooks said. “The only weapon I had was a baseball bat.”

Republican Senator Jeff Flake told local ABC-TV Scalise was shot in the left hip. Flake said the gunman was shot.

U.S. President Donald Trump said in a Twitter message that Scalise, “a true friend and patriot, was badly injured but will fully recover. Our thoughts and prayers are with him.”

Scalise’s position as whip in the Republican-controlled House makes him one of the most senior figures in Congress. He is a representative from Louisiana.

The group were practicing for the annual Democrats versus Republicans congressional baseball game that was scheduled to be played on Thursday.

‘GOING AFTER ELECTED OFFICIALS’

“It’s pretty well known in the neighborhood who those folks are on the baseball field,” Brooks said. “It’s not a secret we are practicing … He was going after elected officials.”

Democrats were also practicing at another field at a different location, CNN reported.

Reba Winstead lives across the street from the parking lot of the park where the shooting occurred.

“I was on my front porch and that is when I heard the first round of shots. There was about a dozen shots. There was a pause. Then there was more shooting. I called 911.”

Trump, a Republican, said in a statement that he and Vice President Mike Pence were monitoring developments closely.

“We are deeply saddened by this tragedy. Our thoughts and prayers are with the members of Congress, their staffs, Capitol Police, first responders, and all others affected,” he said.

Steve Scalise is the third-highest ranked member of the Republican leadership in the House, and has the difficult job of trying to keep order in the fractious party ranks and rounding up votes for bills.

(Reporting by Susan Heavy and Doina Chiacu in Washingon, Gina Cherelus in New York; Writing by Daniel Wallis; Editing by Jeffrey Benkoe and Frances Kerry)

Gunman shoots congressman, police at Virginia baseball practice

U.S. House Majority Whip Steve Scalise (R-LA) leaves during the House vote on continuing a resolution on a budget on Capitol Hill in Washington, U.S April 28, 2017. REUTERS/Yuri Gripas

(Reuters) – A gunman opened fire on Republican members of Congress during a baseball practice near Washington early on Wednesday, wounding several people including House of Representatives Majority Whip Steve Scalise before being taken into custody, police and media reports said.

The shooter appeared to be a white male, “a little bit on the chubby side,” Representative Mo Brooks told CNN, adding that he only saw the man for second.

Brooks said he heard 10 to 20 rounds from the gunman’s rifle before the security detail returned fire. He said there were 20 to 25 members of team at the practice in Alexandria, Virginia, when the gunfire erupted.

(Reporting by Gina Cherelus in New York; Writing by Daniel Wallis; Editing by Jeffrey Benkoe and Frances Kerry)

NSA backtracks on sharing number of Americans caught in warrant-less spying

A security car patrols the National Security Agency (NSA) data center in Bluffdale, Utah, U.S., March 24, 2017. REUTERS/George Frey

By Dustin Volz

WASHINGTON (Reuters) – For more than a year, U.S. intelligence officials reassured lawmakers they were working to calculate and reveal roughly how many Americans have their digital communications vacuumed up under a warrant-less surveillance law intended to target foreigners overseas.

This week, the Trump administration backtracked, catching lawmakers off guard and alarming civil liberties advocates who say it is critical to know as Congress weighs changes to a law expiring at the end of the year that permits some of the National Security Agency’s most sweeping espionage.

“The NSA has made Herculean, extensive efforts to devise a counting strategy that would be accurate,” Dan Coats, a career Republican politician appointed by Republican President Donald Trump as the top U.S. intelligence official, testified to a Senate panel on Wednesday.

Coats said “it remains infeasible to generate an exact, accurate, meaningful, and responsive methodology that can count how often a U.S. person’s communications may be collected” under the law known as Section 702 of the Foreign Intelligence Surveillance Act.

He told the Senate Intelligence Committee that even if he dedicated more resources the NSA would not be able to calculate an estimate, which privacy experts have said could be in the millions.

The statement ran counter to what senior intelligence officials had previously promised both publicly and in private briefings during the previous administration of President Barack Obama, a Democrat, lawmakers and congressional staffers working on drafting reforms to Section 702 said.

Representative John Conyers, the top Democrat in the House of Representatives Judiciary Committee, said that for many months intelligence agencies “expressly promised” members of both parties to deliver the estimated number to them.

Senior intelligence officials had also previously said an estimate could be delivered. In March, then NSA deputy director Rick Ledgett, said “yes” when asked by a Reuters reporter if an estimate would be provided this year.

“We’re working on that with the Congress and we’ll come to a satisfactory resolution, because we have to,” said Ledgett, who has since retired from public service.

The law allows U.S. intelligence agencies to eavesdrop on and collect vast amounts of digital communications from foreign suspects living outside of the United States, but often incidentally scoops up communications of Americans.

The decision to scrap the estimate is likely to complicate a debate in Congress over whether to curtail certain aspects of the surveillance law, congressional aides said. Congress must vote to renew Section 702 to avoid its expiration on Dec. 31.

Privacy issues often scramble traditional party lines, but there are signs that Section 702’s renewal will be even more politically unpredictable.

Some Republicans who usually support surveillance programs have expressed concerns about Section 702, in part because they are worried about leaks of intercepts of conversations between Trump associates and Russian officials amid investigations of possible collusion.

U.S. intelligence agencies last year accused Russia of interfering in the 2016 presidential election campaign, allegations Moscow denies. Trump denies there was collusion. Intelligence officials have said Section 702 was not directly connected to surveillance related to those leaks.

“As big a fan as I am of collection, incidental collection, I’m not going to reauthorize a program that could be politically manipulated,” Senator Lindsey Graham, usually a defender of U.S. surveillance activities, told reporters this week.

Graham was among 14 Republican senators, including every Republican member of the intelligence panel, who on Tuesday introduced a bill supported by the White House and top intelligence chiefs, that would renew Section 702 without changes and make it permanent.

Critics have called the process under which the FBI and other agencies can query the pool of data collected for U.S. information a “backdoor search loophole” that evades traditional warrant requirements.

“How can we accept the government’s reassurance that our privacy is being protected when the government itself has no idea how many Americans’ communications are being swept up and stored?” said Liza Goitein, a privacy expert at the Brennan Center for Justice.

(Reporting by Dustin Volz; additional reporting by Richard Cowan; Editing by Jonathan Weber and Grant McCool)

Venezuela inflation so far this year at 128 percent: congress

Riot security forces members catch fire during riots at a rally against Venezuelan President Nicolas Maduro's government in Caracas, Venezuela, June 7, 2017. REUTERS/Carlos Garcia Rawlins

CARACAS (Reuters) – Inflation in Venezuela’s crisis-hit economy was 127.8 percent in the first five months of 2017, the opposition-led congress said on Friday in the absence of official data.

Economic hardship in the country, where many are skipping food and there are severe shortages, is helping fuel opposition protests that have led to at least 67 deaths in the last two months.

Various factors underlay the five-month price rise, including excess money-printing by the central bank, restrictions on imports and a recent devaluation of the bolivar, opposition lawmaker and economist Angel Alvarado said.

May inflation was 18.26 percent, he added, presenting the latest opposition-calculated index.

President Nicolas Maduro’s government has not published official data for more than a year.

Government opponents say Maduro and his predecessor, Hugo Chavez, have wrecked a once-prosperous economy with 18 years of state-led socialist policies ranging from nationalizations to currency controls.

The government says it is victim of an “economic war” led by opposition-linked businessmen.

(Writing by Andrew Cawthorne; Editing by Steve Orlofsky)

Comey’s caution to meet Trump’s tweets in Russia hearing

FILE PHOTO: U.S. President Donald Trump (L) speaks in Ypilanti Township, Michigan March 15, 2017 and FBI Director James Comey testifies before a Senate Judiciary Committee hearing in Washington, D.C., May 3, 2017 in a combination of file photos. REUTERS/Jonathan Ernst/Kevin Lamarque/File Photo

By Warren Strobel and Patricia Zengerle

WASHINGTON (Reuters) – Former FBI Director James Comey will tell Congress on Thursday that President Donald Trump pressed him repeatedly to halt a probe into his ex-national security adviser’s ties with Russia and to declare publicly that Trump himself was not under investigation.

Comey’s testimony in the most widely anticipated congressional hearing in years will put at center stage a high-stakes clash between two men with vastly different personas.

The outcome could have significant repercussions for Trump’s 139-day-old presidency as special counsel Robert Mueller and multiple congressional committees investigate whether Trump’s campaign team colluded with Russia during the 2016 presidential election. The White House and Russia deny any collusion occurred.

In written testimony released by the Senate Intelligence Committee on Wednesday, Comey quoted Trump as telling him the Russia investigation was a “cloud” impairing his ability to operate as president.

Comey said in his statement that in a one-on-one meeting in the Oval Office on Feb.14, Trump asked him to drop an investigation of former national security adviser Michael Flynn that is part of a wider probe into Russia’s alleged meddling in the 2016 presidential election.

“I hope you can see your way clear to letting this go, to letting Flynn go,” Comey quoted Trump as saying.

Comey also said Trump told him during a one-on-one dinner on Jan. 27 that he needed “loyalty.”

Trump fired the FBI chief on May 9, setting off a political firestorm, and he has since called Comey a “showboat” and a “grandstander.”

Democrats, along with some Republicans, on the committee will use the hearing on Thursday to press for further details of any attempts by Trump to blunt the Russia investigation.

“I’m very concerned about the implication that Comey keeping his job was dependent on his loyalty or, in Comey’s words, developing a ‘patronage relationship.’ That is another way the President sought to impede the investigation,” Democratic Senator Ron Wyden said in a comment emailed to Reuters.

Senator Susan Collins, a Republican member of the panel, said earlier this week: “I want to know more also about the president’s interactions with Mr. Comey with regard to the investigation into Michael Flynn. … It makes a big difference what the exact words were, the tone of the president, the context of the conversation.”

But Republican Senator Richard Burr, the panel’s chairman, sought to downplay Comey’s “loyalty” remark, saying: “I don’t think it’s wrong to ask for loyalty from anybody in an administration.”

Trump’s attorney, Marc Kasowitz, released a statement on Wednesday saying the president felt “totally vindicated” by Comey’s acknowledgement that he had told Trump on three occasions that he was not personally under investigation.

Despite landing himself in other political controversies, including his handling of the FBI investigation of 2016 Democratic presidential nominee Hillary Clinton’s private email server, Comey is widely seen as cautious and fact-oriented.

“One thing you don’t ever hear about him is (that) people don’t think he tells the truth. He brings a lot of credibility,” said Benjamin Wittes, a Comey confidant and senior fellow at the Brookings Institution.

Less than five months into office, Trump has proven himself to be impulsive and visceral, turning to Twitter to lambaste perceived adversaries in 140 characters or less.

AWKWARD RELATIONSHIP

As Comey’s written testimony underscored, he and the U.S. president had an awkward, topsy-turvy relationship.

Then-candidate Trump excoriated Comey last summer for deciding not to prosecute Clinton over her handling of government emails, then praised him when he reopened the issue in October just days before the election.

Trump initially kept Comey on as FBI director, and publicly embraced him at a January White House event. Two days after firing him, Trump said it was because of “this Russia thing.”

Trump is widely expected to use his Twitter account, which lists 31.8 million followers, to counterpunch at Comey on Thursday – perhaps even in real time.

The Republican president’s unconstrained use of Twitter has confounded allies and skeptics alike.

“Every time you tweet, it makes it harder on all of us who are trying to help you. I don’t think you did anything wrong. Don’t get in the way of an investigation that could actually clear you,” Republican Senator Lindsey Graham told Fox News on Wednesday.

Despite the high drama, Comey is not expected to drop any major new bombshells, or directly accuse Trump of trying to obstruct justice by asking him to halt the FBI probe of Flynn.

He is also unlikely to reveal new details of the ongoing Russia investigation. U.S. law enforcement officials said Comey had discussed his testimony with Mueller’s investigative team to ensure it did not interfere with the special counsel’s probe.

“The one thing you know he’s not going to do, you know he’s not going to reach a conclusion (on the legality of Trump’s actions) and he’s not going to talk about the underlying investigation,” said Stephen Ryan, a former federal prosecutor and congressional investigator now at the McDermott, Will & Emery law firm.

Still, Ryan said the testimony, and senators’ questions, would be historic. The closest comparison, he said, was the appearance 44 years ago of President Richard Nixon’s White House counsel John Dean, who, after being fired by Nixon, gave damning testimony in 1973 to the Senate Watergate Committee.

(Additional reporting by John Walcott; Editing by Yara Bayoumy and Peter Cooney)

White House, intel chiefs want to make digital spying law permanent

Director of National Intelligence Daniel Coats (2nd-R) testifies as he appears alongside acting FBI Director Andrew McCabe (L), Deputy Attorney General Rod Rosenstein (2nd-L) and National Security Agency Director Michael Rogers (R) at a Senate Intelligence Committee hearing on the Foreign Intelligence Surveillance Act (FISA) in Washington, U.S., June 7, 2017. REUTERS/Kevin Lamarque

By Dustin Volz

WASHINGTON (Reuters) – The White House and U.S. intelligence chiefs Wednesday backed making permanent a law that allows for the collection of digital communications of foreigners overseas, escalating a fight in Congress over privacy and security.

The law, enshrined in Section 702 of the Foreign Intelligence Surveillance Act, is due to expire on December 31 unless Congress votes to reauthorize it, but is considered vital by U.S. intelligence agencies.

Privacy advocates have criticized the law though for allowing the incidental collection of data belonging to millions of Americans without a search warrant.

The push to make the law permanent may lead to a contentious debate over renewal of Section 702 in Congress, where lawmakers in both parties are deeply divided over whether to adopt transparency and oversight reforms.

“We cannot allow adversaries abroad to cloak themselves in the legal protections we extend to Americans,” White House Homeland Security Adviser Tom Bossert wrote in an editorial published in the New York Times newspaper on Wednesday.

U.S. Director of National Intelligence Dan Coats, speaking on behalf of other intelligence agency leaders, also told the Senate Intelligence Committee panel on Wednesday that the statute should be made permanent, saying it was necessary to keep the United States safe from national security threats.

NSA Director Rogers added that the law had been vital to preventing terrorism in allied countries as well.

Fourteen Republican senators, including every Republican member of the Senate intelligence panel, introduced a bill on Tuesday that would make part of Section 702 permanent.

The statute, which grants the National Security Agency a considerable freedom in the collection of foreigners’ digital communications, normally comes with a “sunset” clause, meaning that roughly every five years lawmakers need to reconsider its impact on privacy and civil liberties.

‘SPY ON AMERICANS’

Intelligence Director Coats said it was not feasible for the NSA to provide an estimate of the number of Americans whose communications are ensnared incidentally under Section 702.

Coats and other officials had previously told Congress they would attempt to share an estimate publicly before the statute expires. A frustrated Democratic Senator Ron Wyden, who has asked for such an estimate for several years, said Coats “went back on a pledge.”

Privacy advocates criticized the push to make Section 702 permanent, arguing that regular reviews of the law were necessary to conduct appropriate oversight and prevent potential abuses.

“After months of criticizing the government for allegedly spying on his presidential campaign, President Trump is now hypocritically endorsing a bill that would make permanent the NSA authority that is used to spy on Americans without a warrant,” said Neema Singh Guliani, legislative counsel with the American Civil Liberties Union.

Disclosures by former NSA contractor Edward Snowden in 2013 revealed the sweeping nature of 702 surveillance, prompting outrage internationally and embarrassing some U.S. technology firms shown to be involved in a program known as Prism.

Last week, Facebook <FB.O>, Amazon <AMZN.O>, Alphabet Inc’s Google <GOOGL.O> sent a letter to Congress urging lawmakers to adopt several reforms to the law, including codifying the recent termination of a type of NSA surveillance that collected Americans’ communications with someone living overseas that merely mentioned a foreign intelligence target.

Making the law permanent without changes would preclude codifying that change.

Reuters reported in March that the Trump administration supported renewal of Section 702 without any changes, citing an unnamed White House official, but it was not clear at the time whether it wanted the law made permanent.

(This version of the story corrects paragraph 14 to add dropped words “embarrassing some U.S. technology firms involved in”)

(Reporting by Dustin Volz; Editing by Alden Bentley and Paul Simao)

Trump seeks to slash government spending in budget plan

FILE PHOTO - President Donald Trump's FY2018 budget is seen printed at the Government Publishing Office in Washington, U.S. on May 19, 2017. REUTERS/Yuri Gripas/File Photo

By Roberta Rampton

WASHINGTON (Reuters) – The White House on Tuesday will ask Republicans who control the U.S. Congress – and federal purse strings – to slash spending on healthcare and food assistance programs for the poor as they push ahead on plans to cut taxes and trim the deficit.

President Donald Trump is set to propose a raft of politically sensitive cuts in his first full budget, for the fiscal year that starts in October, a proposal that some analysts expected would be put aside by lawmakers as they craft their own budget and spending plans.

Trump, who is traveling overseas and will miss the unveiling of his plan, wants lawmakers to cut $3.6 trillion in government spending over 10 years, balancing the budget by the end of the decade, according to a preview given to reporters on Monday.

More than $800 billion would be cut from the Medicaid program for the poor and more than $192 billion from food stamps.

Republicans are under pressure to deliver on promised tax cuts, the cornerstone of the Trump administration’s pro-business economic agenda, which would cut the business tax rate to 15 percent from 35 percent, and reduce the number of personal tax brackets to three from seven.

But their policy agenda has stalled as the White House grapples with the political fallout from Trump’s firing of former FBI Director James Comey.

Comey had been leading a probe of alleged Russian meddling in the 2016 U.S. election.

Trump’s biggest savings would come from cuts to the Medicaid program made as part of a Republican healthcare bill passed by the House of Representatives.

The bill aims to gut the Obama administration’s signature 2010 Affordable Care Act, known as Obamacare, that expanded insurance coverage and the government-run Medicaid program for the poor. But it faces an uncertain future in the Senate, which is writing its own law.

The White House proposed changes that would require more childless people receiving help from the Supplemental Nutrition Assistance Program, better known as food stamps, to work.

STEEP CUTS

The plan would slash supports for farmers, impose user fees for meat inspection and sell off half the nation’s emergency oil stockpile. Another politically fraught item is a proposal for cuts to the U.S. Postal Service, a goal that has long eluded lawmakers and administrations from both political parties.

The first look at the plan came in a “skinny budget” released in March – a document that received a tepid response from Congress.

Most departments would see steep cuts, particularly the State Department and the Environmental Protection Agency.

There is some new spending. The Pentagon would get a boost, and there would be a down payment to begin building a wall on the southern border with Mexico, which was a central promise of Trump’s presidential campaign.

The budget includes $25 billion for a plan to give parents six weeks of paid leave after the birth or adoption of a child, and $200 billion to encourage state and local governments to boost spending on roads, bridges, airports and other infrastructure programs.

The plan drew immediate fire from lobby groups, including from the Committee for a Responsible Federal Budget, which said it relied on “rosy assumptions,” gimmicks and unrealistic cuts.

“While we appreciate the administration’s focus on reducing the debt, when using more realistic assumptions, the president’s budget does not add up,” Maya MacGuineas, the group’s president, said in a statement.

Trump’s plan relies on forecasts for economic growth of 3 percent a year by the end of his first term – well beyond Congressional Budget Office assumptions of 1.9 percent growth.

“That assumes a pessimism about America, about the economy, about its people, about its culture, that we’re simply refusing to accept,” White House budget director Mick Mulvaney told reporters on Monday.

(Additional reporting by Yasmeen Abutaleb, David Shepardson, Timothy Gardner, Ginger Gibson, Jason Lange and Julia Edwards Ainsley in Washington, and PJ Huffstutter in Chicago; Editing by Peter Cooney)