California governor proposes more money to fight Trump

FILE PHOTO - California Governor Jerry Brown speaks in Sacramento, California, U.S. on January 9, 2014. REUTERS/Max Whittaker/File Photo

By Dan Levine

SAN FRANCISCO (Reuters) – California governor Jerry Brown on Thursday proposed a funding increase for the state attorney general to create more than 30 new positions dedicated to combating President Donald Trump’s policies.

Democratic attorneys general in states across the country have assumed lead roles in opposing some of the Republican president’s agenda. State attorneys general in Washington and Hawaii successfully sued to block Trump’s executive orders restricting travel from some Muslim-majority countries, and California attorney general Xavier Becerra has pledged to defend the state’s environmental standards and health care access.

Brown has been particularly outspoken against Trump’s policies. In budget revisions released on Thursday, Brown’s office proposed a $6.5 million increase for California’s Department of Justice, enough to fund 31 positions to address “various actions taken at the federal level that impact public safety, healthcare, the environment, consumer affairs and general constitutional issues.”

The department has expended over 11,000 hours of legal work in response to federal issues since Trump’s inauguration in January, according the governor’s office.

Brown’s proposals would have to be approved by California’s legislature, which is dominated by Democrats.

At a press conference, Brown repeatedly expressed the need to fight the Trump administration on health care reforms under discussion in Washington. The potential loss of funds for the state’s Medicaid program alone would be enough to fund the University of California system for a year, Brown said.

Given that backdrop, Brown said Becerra deserves “some latitude” in pursuing litigation.

A spokeswoman for Becerra could not immediately be reached for comment.

Brown’s budget also proposed a $15 million increase to expand legal services for immigrants seeking assistance securing legal status in the United States and fighting deportation.

(Additional reporting by Sharon Bernstein in Sacramento; Editing by Cynthia Osterman)

Security situation in Afghanistan likely to get worse: U.S. intel chief

U.S. Director of National Intelligence Dan Coats testifies before the U.S. Senate Select Committee on Intelligence on Capitol Hill in Washington, U.S. May 11, 2017. REUTERS/Eric Thayer

By Idrees Ali

WASHINGTON (Reuters) – The security situation in Afghanistan will further deteriorate even if there is a modest increase in U.S. military support for the war-torn country, the top U.S. intelligence official said on Thursday, as President Donald Trump’s administration weighs sending more forces to Afghanistan.

Afghan army units are pulling back, and in some cases have been forced to abandon more scattered and rural bases, and the government can claim to control or influence only 57 percent of the country, according to U.S. military estimates from earlier this year.

“The intelligence community assesses that the political and security situation in Afghanistan will almost certainly deteriorate through 2018, even with a modest increase in (the)military assistance by the United States and its partners,” Director of National Intelligence Dan Coats said in a Senate hearing.

In February, Army General John Nicholson, the U.S. commander in Afghanistan, said he needs several thousand more international troops to break a stalemate with the Taliban.

Reuters reported in late April that Trump’s administration was carrying out a review of Afghanistan and conversations are revolving around sending between 3,000 and 5,000 U.S. and coalition troops to Afghanistan.

Deliberations include giving more authorities to forces on the ground and taking more aggressive action against Taliban fighters. This could allow U.S. advisers to work with Afghan troops below the corps level, potentially putting them closer to fighting, a U.S. official said.

In the same hearing, the head of the military’s Defense Intelligence Agency said the situation would worsen unless U.S. trainers worked with Afghan soldiers closer to the front line, their numbers increased and there was greater intelligence and surveillance.

Trump has not been formally presented with the options yet.

Some U.S. officials said they questioned the benefit of sending more troops to Afghanistan because any politically palatable number would not be enough to turn the tide, much less create stability and security. To date, more than 2,300 Americans have been killed and over 17,000 wounded.

President Ashraf Ghani’s U.S.-backed government remains plagued by corruption and divided by factions loyal to political strongmen whose armed supporters often are motivated by ethnic, family, and regional loyalties.

Coats said that Afghanistan would struggle to decrease its reliance on the international community “until it contains the insurgency or reaches a peace agreement with the Taliban.”

(Reporting by Idrees Ali; Editing by Alistair Bell)

Illinois bill expands abortion coverage, faces governor’s veto

FILE PHOTO: Illinois Gov-elect Bruce Rauner speaks to the media after a meeting with U.S. President Barack Obama and other Governor-elects from seven U.S. states at the White House in Washington December 5, 2014. REUTERS/Larry Downing/File Photo

By Timothy Mclaughlin

CHICAGO (Reuters) – An Illinois bill that expands state-funded coverage of abortions for low-income residents and state employees passed the Democratic-controlled Senate on Wednesday but faces a likely veto by the state’s Republican governor.

The measure, which passed the Senate 33-22, also aims to keep abortions legal in Illinois if the U.S. Supreme Court follows President Donald Trump’s call to overturn its landmark Roe v. Wade ruling 44 years ago that made abortions legal.

Illinois’ Medicaid program covers abortions in cases of rape, incest and when a mother’s life or health is threatened. The expansion would enable poor women to obtain elective abortions. Also, the legislation would allow state employees to have the procedures covered under state health insurance.

The vote was a rare legislative victory for U.S. abortion-rights advocates at a time when foes have ratcheted up the heat with the election of Trump and a conservative Congress.

However, the victory will likely be short lived because Governor Bruce Rauner has promised to veto the legislation, saying Illinois should focus on less “divisive” issues and instead pass a full-year operating budget for the first time in nearly two years.

A spokeswoman for Rauner directed questions on Wednesday evening to previous statements where he said he did not support the measure. However, as a candidate in 2014, he supported expanding abortion access.

Republican lawmakers have criticized the bill as both burdensome to tax payers and immoral.

“We should be focused on ways to reduce costs—not advance costly controversial proposals that will cost the taxpayers even more,” Republican state senator Dan McConchie said in a statement on Wednesday.

A veto override would take 71 votes in the Democrat-led House, where the bill passed 62-55 in late April. It would take 36 votes in the Senate.

A veto by Rauner would be a sharp turn from his previous position, which political opponents are poised to exploit.

“We cannot allow Illinois to return to the days when women had so few options for reproductive care that they desperately resorted to back-alley quacks, poison, knitting needles, disappearing from public sight or suicide to deal with unwanted pregnancies,” state senator Daniel Biss, a Democrat, said in a statement after the bill passed on Wednesday.

(Additional reporting by Karen Pierog; Editing by David Gregorio)

Mexico presses Trump to uphold NAFTA for good of both nations

U.S. President Donald Trump arrives aboard Air Force One at JFK International Airport in New York, U.S. May 4, 2017. REUTERS/Jonathan Ernst

MEXICO CITY (Reuters) – Mexico made a pitch to U.S. President Donald Trump on Wednesday to uphold the NAFTA trade deal, arguing that unwinding economic integration would hurt both nations, damaging U.S. exports, risking American jobs and hitting consumers north of the border.

Responding to a March 31 executive order by Trump for a review of the U.S. trade deficit, Mexico said its trade surplus with the United States was misunderstood and that the real hit to U.S. manufacturing jobs came with China’s accession to the World Trade Organization (WTO) in 2001.

Last year’s U.S. deficit with Mexico of $63.2 billion also reflected a weak peso after it was battered by uncertainty over the future of bilateral trade relations, according to a document published by the Mexican Embassy in Washington.

“The increasing integration of our economies makes Mexico critically important to the U.S. economy, not only as an export market, but also as a partner in production,” the director of the embassy’s trade and NAFTA office, Kenneth Smith, wrote.

Mexico was responding to the U.S. Commerce Department’s request for public input as it prepares a report for Trump on the United States’ $500 billion annual trade deficit. The report and public comments will be sent to Trump in June.

Mexico said that, without NAFTA, the average tariff on Mexican exports to the United States would be 3.5 percent, or about half the average tariff on U.S. exports to Mexico, because of the “most favored nation” clause that would apply under WTO rules.

U.S.-Mexican trade relations have been strained by Trump’s repeated vow to scrap the North American Free Trade Agreement if he cannot secure better terms for U.S. workers and industry.

Trump has cited the U.S. trade deficit with Mexico as proof that the United States was the loser in the relationship, saying the Americans would be better off if the two nations did not trade at all.

However, Mexico said 75 percent of its exports to the United States are inputs in U.S. production processes and that the United States has an $8 billion surplus in services.

“Workers on both sides of the border work together in the production of goods to successfully compete in global markets,” Smith said.

The U.S. energy industry also relies on exports to Mexico, which is now the biggest export market for U.S. refined oil products and natural gas, Smith said.

(Reporting By Frank Jack Daniel, Writing by Dave Graham and Mitra Taj)

Protesters call for investigation following FBI director firing

Protesters gather to rally against U.S. President Donald Trump's firing of Federal Bureau of Investigation (FBI) Director James Comey, outside the White House in Washington, U.S. May 10, 2017. REUTERS/Jonathan Ernst

By Chris Kenning and Ian Simpson

CHICAGO/WASHINGTON (Reuters) – A day after President Donald Trump’s stunning dismissal of FBI Director James Comey, protesters gathered in Washington, Chicago and other cities to urge an independent investigation of alleged collusion between Russia and Trump’s presidential campaign.

Waving signs and chanting outside the White House and at Senate constituency offices in other states, demonstrators said Trump’s move had compromised the Federal Bureau of Investigation’s probe.

“I still don’t have any love for Comey,” said Cody Davis, 29, among a small group of protesters near Chicago’s 96-story Trump International Hotel and Tower. “I’m not here to defend him. You could easily argue he lost the election for Hillary.”

Comey has been criticized by Democrats for his handling of an investigation surrounding 2016 Democratic presidential nominee Hillary Clinton’s use of a private email server while she was secretary of state.

“The reason I’m here today is not that he was fired but because it was so clearly because Trump was afraid of something,” Davis said.

White House officials have denied any political motivation behind the firing and Trump said Comey had not been doing a good job and had lost the confidence of everyone in Washington.

Critics at various protests compared the Comey dismissal to the “Saturday Night Massacre” of 1973, in which President Richard Nixon fired an independent special prosecutor investigating the Watergate scandal.

MoveOn.Org and a coalition of liberal groups hastily organized protests at senators’ offices in more than a dozen states including New York, Kentucky, Arizona, California and Florida.

“Donald Trump just fired the one man in America who was leading the most thorough and long-lasting investigation of Donald Trump,” Jo Comerford, campaign director for MoveOn.org, said in a statement.

The issue also was discussed at town hall meetings being held by members of Congress across the country.

For some Trump supporters the controversy was overblown.

Denny Herman of Wamego, Kansas, said Comey deserved to be fired and the Russia investigation would not turn up wrongdoing. He said there was no need for a special prosecutor.

“It’s just liberal crap,” he said while relaxing at a bar. “We got bigger fish to fry.”

But in downtown Chicago, several dozen people banged pots and pans, waved signs reading “You can’t fire the truth” and chanted “Investigate Now!”

Several hundred people also gathered outside the White House and called for a special prosecutor.

“I feel like what happened yesterday was truly shocking, and the Republicans won’t stand up and do what they should without somebody pressing them,” said demonstrator Kelli Rowedder, a 34-year-old teacher from Washington.

(Additional reporting by Karen Dillon in Wamego, Kan. and Kathy Lynn Gray in New Albany, Ohio; Editing by Bill Trott)

Defending firing of FBI director, Trump derides Democratic critics

This picture shows a copy of the letter by President Trump firing Director of the FBI James Comey at the White House. REUTERS/Joshua Roberts

By Susan Heavey

WASHINGTON (Reuters) – President Donald Trump defended his firing of FBI Director James Comey on Wednesday, fighting a storm of criticism that the ouster was aimed at blunting an agency probe into his presidential campaign’s possible collusion with Russia to sway the 2016 election.

The Republican president’s abrupt move on Tuesday stunned Washington and was swiftly condemned by Democrats and by some in his own party.

In a series of posts on Twitter on Wednesday morning, Trump sought to explain his move, and lambasted his critics.

“Comey lost the confidence of almost everyone in Washington, Republican and Democrat alike. When things calm down, they will be thanking me,” he said.

The Trump administration said on Tuesday Comey’s firing was over his handling of an election-year FBI probe into then-Democratic presidential nominee Hillary Clinton’s use of a private email server during her time as secretary of state.

Though many Democrats have criticized Comey’s management of that investigation, they said they were troubled by the timing of his dismissal, given that Trump could have acted soon after taking office on Jan. 20 and that he has repeatedly criticized the FBI and congressional probes into alleged Russian involvement in the election.

Asked if Trump had fired Comey over his handling of the Russia investigation, White House spokeswoman Sarah Huckabee Sanders said no.

“Frankly, if that’s going to continue, it’s going to continue whether Jim Comey is there or not,” she told MSNBC in an interview.

Some Democrats compared the move to the “Saturday Night Massacre” of 1973, in which President Richard Nixon ordered the firing of an independent special prosecutor investigating the Watergate scandal that eventually led Nixon to resign.

Democrats amplified their calls on Wednesday for an independent investigation into Moscow’s role in the 2016 election.

‘CONSTITUTIONAL CRISIS’

“What we have now is really a looming constitutional crisis that is deadly serious,” Democratic Senator Richard Blumenthal told CNN.

In one tweet on Wednesday, Trump referred to previous Democratic criticism of Comey over the Clinton probe. “The Democrats have said some of the worst things about James Comey, including the fact that he should be fired, but now they play so sad!” he said.

The president also personally attacked Blumenthal, referring to him as “Richie,” calling his comments on the Comey firing “a joke” and alluding to a years-old controversy over the senator’s military service during the Vietnam War era.

Some Republicans have also said they were troubled by the timing of Comey’s firing, including Senator Richard Burr, the Republican chairman of the Senate Intelligence Committee. That is one of several congressional panels investigating Russian interference during the election and possible collusion by Trump campaign staff.

U.S. intelligence agencies concluded in a January report that Russian President Vladimir Putin had ordered an effort to disrupt the 2016 election that included hacking into Democratic Party emails and leaking them, with the aim of helping Trump.

Russia has repeatedly denied any such meddling and the Trump administration denies allegations of collusion with Russia.

LAVROV VISIT

Russian Foreign Minister Sergei Lavrov is visiting Washington this week for high-level meetings, including one with Trump at the White House later on Wednesday in what will be the highest-level contact between Trump and the Russian government since he became president.

The two were scheduled to meet at 10:30 a.m. ET (1430 GMT), the White House said.

Asked by reporters at the U.S. State Department before a meeting with Secretary of State Rex Tillerson if Comey’s firing would cast a shadow over the talks, Lavrov responded in a sarcastic tone: “Was he fired? You’re kidding. You’re kidding.”

The Kremlin said it hoped Comey’s firing would not affect Moscow’s ties with Washington, saying it believed his dismissal had nothing to do with Russia.

Legal experts said Trump’s dismissal of Comey does not mean the FBI’s Russia investigation will be disrupted or end, since career FBI staffers can continue the probe even as the search for a new director begins.

CNN reported on Tuesday night that federal prosecutors had issued grand jury subpoenas to former Trump national security adviser Michael Flynn, seeking business records, as part of the probe into Russian interference in the election.

Comey’s deputy, Andrew McCabe, took over as acting FBI director while the White House searches for a new permanent director.

“James Comey will be replaced by someone who will do a far better job, bringing back the spirit and prestige of the FBI,” Trump tweeted.

(Reporting by Susan Heavey, David Alexander, Arshad Mohammed; Writing by Will Dunham and Susan Heavey; Editing by Frances Kerry)

Delaware legislature moves to guarantee abortion access in Trump era

An exam room at the Planned Parenthood South Austin Health Center is shown following the U.S. Supreme Court decision striking down a Texas law imposing strict regulations on abortion doctors and facilities in Austin, Texas, U.S. June 27, 2016. REUTERS/Ilana Panich-Linsman

By Barbara Goldberg

(Reuters) – The Delaware state Senate on Tuesday passed a bill that would keep abortion legal in the state if a future U.S. Supreme Court shaped by President Donald Trump overturns the landmark 1973 Roe v. Wade ruling that legalized it nationally.

The measure was approved by a vote of 11-7 but needs to be passed by the House and signed by Democratic Governor John Carney Jr. to take effect.

Democrats control both houses of the Delaware legislature but are facing a June 30 end to this year’s session.

Carney “supports the rights and protections afforded women under Roe v. Wade” but has not yet said whether he will sign the bill into law, said his spokeswoman Jessica Borcky.

Trump has promised to appoint justices to the nation’s top court, including recent appointee Neil Gorsuch, who would overturn the Roe v. Wade ruling and leave it up to the individual states to decide whether to legalize abortion. Trump received strong support from anti-abortion groups in the election campaign.

Delaware is one of 11 states with a pre-Roe abortion ban still on the books, according to the Guttmacher Institute which tracks reproductive policy.

If Roe v. Wade is overturned, abortion would be almost immediately illegal in four states – Louisiana, Mississippi, North Dakota and South Dakota, according to Guttmacher and the Center for Reproductive Rights. In the other 46 states, abortion would remain legal but in at least 10 states – including Delaware – it could become illegal with a step as simple and swift as a state attorney general’s opinion, Guttmacher said.

“There wasn’t a sense of urgency until President Trump got elected,” said Kathleen MacRae, executive director of the ACLU of Delaware. The ACLU and Planned Parenthood of Delaware formed the “She Decides Delaware” campaign to lobby for legislation to keep abortion legal.

“We don’t want to leave the women of Delaware in a vulnerable position,” MacRae said. “It’s up to the woman and the family to decide when she would like to become a parent.”

Momentum for the bill grew in April when a coalition of state religious leaders including Jewish, Episcopal, Methodist, Presbyterian and Unitarian clergy publicly declared “acceptance” of abortion in a show of support for Planned Parenthood. The state’s Catholic leader, Bishop Francis Malooly of the Diocese of Wilmington, immediately denounced the statement.

MINIMALIST DESIGN

The bill itself has a minimalist design. It aims to keep the provisions of Roe v. Wade rather than repeal the 1953 state ban.

“This bill simply seeks to codify the framework in place for a very long time – that a woman has a right to choose,” Senator Bryan Townsend, a Democrat who is the bill’s sponsor, told colleagues before the vote.

“It’s a decision that belongs with the woman, her doctor and her family,” said Senator Stephanie Hansen, a Democrat and bill co-sponsor.

Opponents denounced the move. “Any civilized society restricts an individual’s right to choose when it would affect an innocent person. I can think of no more innocent person than an unborn child,” said Senator Bryant Richardson, a Republican.

“You can codify abortion all you want but you are still codifying the murder of an unborn child,” said Delaware Right to Life spokeswoman Moira Sheridan.

Under the 1950s’ Delaware ban, terminating a pregnancy is a felony for the provider and a misdemeanor for the woman, except when it is deemed a “therapeutic abortion” in either case.

Dr. Larry Glazerman, medical director at Planned Parenthood Delaware, said he is confident the bill is enough to protect him and other doctors who provide abortion from prosecution.

(Reporting by Barbara Goldberg in New York; Editing by Cynthia Osterman)

No change to U.S. Navy freedom of navigation patrols: commander

FILE PHOTO: Commander of the U.S. Pacific Fleet Admiral Scott Swift sits in front of a large poster of an Australian Navy frigate as he speaks during a media conference at the 2015 Pacific International Maratime Exposition in Sydney, Australia, October 6, 2015. REUTERS/David Gray/File Photo

By Himani Sarkar

SINGAPORE (Reuters) – There has been no policy change with regard to U.S. Navy freedom of navigation operations under the administration of President Donald Trump, U.S. Pacific Fleet Commander Admiral Scott Swift said on Monday.

Under the previous administration, the U.S. navy conducted such voyages through the South China Sea – most of which is claimed by China – angering Beijing. But none has been conducted in the region under the Trump administration.

The New York Times reported last week that a U.S. Pacific Command request in March to sail near the disputed Scarborough Shoal, a prime fishing ground that China seized in 2012, was rejected by top Pentagon officials.

Two other requests by the Navy in February were also turned down, it said.

Some saw this as an indication that the United States wanted to avoid antagonizing China while waiting to see how far it would go in helping to press North Korea to give up its ballistic missile and nuclear programs.

“There is nothing that has significantly changed in the last two or three months,” Admiral Scott Swift told reporters in Singapore, referring to the U.S. Navy excursions it says it conducts to ensure freedom of navigation.

“We just present the opportunities when we have a ship in the area and there’s an area of interest … They are either taken advantage of or they’re not.”

China’s extensive claims to the South china Sea, which sees about $5 trillion in ship-borne trade pass every year, are challenged by Brunei, Malaysia, the Philippines, and Vietnam, as well as Taiwan.

The United States has criticized China’s construction of man-made islands and build-up of military facilities in the sea, and expressed concern they could be used to restrict free movement.

Late last month, top U.S. commander in the Asia-Pacific region, Admiral Harry Harris, said the United States would likely carry out freedom of navigation operations in the South China Sea soon, without offering details.

Swift said there has been no change in the importance the United States placed on the South China Sea issue.

“We are on track to conduct over 900 ship days of operations this year in the South China Sea,” he said.

On China’s recent unveiling of a domestically built aircraft carrier, Swift said: “If you have a global economy, I think you need a global navy to look after that economy.”

“If they think that they need carriers to support their maritime strategy, then I am not concerned about it.”

(Editing by Miyoung Kim and Robert Birsel)

Dollar slips, yen gains, after Trump fires FBI chief

Dollar banknotes are seen in this picture illustration taken April 28, 2017. REUTERS/Dado Ruvic/Illustration

By Jemima Kelly

LONDON (Reuters) – The dollar fell and the perceived safe-haven yen gained on Wednesday, after U.S. President Donald Trump abruptly fired FBI Director James Comey in a move that shocked Washington and dampened some of this week’s strong risk appetite.

Rekindled fears that North Korea could be gearing up for another weapons test also underpinned the yen, which had sunk to an eight-week low the previous day as investors’ appetite for riskier currencies increased on the back of a weekend French election result that eased euro break-up fears.

The dollar, which had strengthened to as much as 114.325 yen on Tuesday <JPY=>, slipped back to 113.87 yen.

Trump said he had sacked FBI Director James Comey – who had been leading an investigation into the Trump 2016 presidential campaign’s possible collusion with Russia to influence the election outcome – over his handling of an email scandal involving presidential nominee Hillary Clinton.

But the move ignited a political firestorm, raising suspicions among Democrats and others that the White House was trying to blunt the FBI probe involving Russia.

The dollar slipped 0.2 percent against a broad index <.DXY>.

“There’s not much risk sentiment – that’s to some extent the main driver today, mainly with respect to geopolitical questions,” said Credit Agricole currency strategist Valentin Marinov in London.

Comments from European Central Bank President Mario Draghi failed to have any clear impact on the euro, which was flat at $1.0878 <EUR=>. Draghi said it was too early for the ECB to declare victory in its quest to boost euro zone inflation.

“Draghi is repeating the same message that he made at the last ECB press conference – there are no big surprises. He’s defending the ECB’s dovish policy stance,” said Marinov.

The euro had risen to a six-month high above $1.10 on Monday, after Emmanuel Macron defeated the anti-EU Marine Le Pen in France’s presidential run-off, as worries over European political risk faded and focus returned to central bank policy.

The Swiss franc, another safe-haven currency, fell to its lowest in seven months on Tuesday and stayed close to that at 1.09575 francs per euro, flat on the day <EURCHF=>.

Commerzbank currency strategist Esther Reichelt, in Frankfurt, though, said risk appetite could only drive the currency market so far before new drivers were needed.

“Dollar strength could materialize more, given the more benevolent risk environment, but that can only move the market for so long – you always need new impetus,” she said.

U.S. political uncertainty has tended to weigh on the dollar in recent months, on the view that a divided Congress could derail Trump’s promised tax reform and stimulus programme.

(Reporting by Jemima Kelly, editing by Larry King)