Anti-Semitic acts spiked since Trump election win, watchdog says

DAY 33 / FEBRUARY 21: President Donald Trump delivered his first public condemnation of anti-Semitic incidents in the United States after a new spate of bomb threats to Jewish community centers and the vandalism of about 170 headstones in a Jewish cemetery in St. Louis (above). REUTERS/Tom Gannam

By Barbara Goldberg

NEW YORK (Reuters) – Anti-Semitic incidents, from bomb threats and cemetery desecration to assaults and bullying, have surged in the United States since the election of President Donald Trump, and a “heightened political atmosphere” played a role in the rise, the Anti-Defamation League said on Monday.

A sharp increase in the harassment of American Jews, including double the incidents of bullying of schoolchildren and vandalism at non-denominational grade schools, was cited in the ADL’s “Audit of Anti-Semitic Incidents.”

Overall, the number of acts targeting Jews and Jewish institutions rose 34 percent in 2016 to 1,266 in 2016 and jumped 86 percent in the first quarter of 2017, the ADL said.

“The 2016 presidential election and the heightened political atmosphere played a role in the increase,” the ADL concluded in its report.

White House spokesman Michael Short said Trump consistently called for an end to anti-Semitism, as recently as Sunday in a speech on Yom HaShoah, Israel’s Holocaust Remembrance Day.

“We must stamp out prejudice and anti-Semitism everywhere it is found,” Trump told the World Jewish Congress Plenary Assembly in New York.

Trump had been criticized for waiting until late February to deliver his first public condemnation of anti-Semitic incidents, previously speaking more generally about his hope of making the nation less “divided.”

He later called such incidents “horrible … and a very sad reminder” of the work needed to root out hate, prejudice and evil.

The majority of anti-Semitic incidents were not carried out by organized extremists and should be seen in the context of a general resurgence of U.S. white supremacist activity, said Oren Segal, director of the League’s Center on Extremism.

“Anti-Semitism is not the sole domain of any one group, and needs to be challenged wherever and whenever it arises,” Segal said in a statement.

Among 34 election-linked incidents cited by the ADL was graffiti posted in Denver in May 2016 that exhorted readers to “Kill the Jews, Vote Trump.”

The League also noted an incident from November when an assailant told a victim in St. Petersburg, Florida: “Trump is going to finish what Hitler started.”

Technology that makes it easier to conduct harassment anonymously contributed to the rising numbers, the ADL said.

Michael Ron David Kadar, an 18-year-old Israeli-American, has been charged with making dozens of bomb threats to Jewish community centers in the United States earlier this year.

(Reporting by Barbara Goldberg; Editing by Daniel Wallis and Lisa Von Ahn)

Trump-backed Navy expansion would boost costs some $400 billion over 30 years: study

FILE PHOTO - Sailors man the rails of the USS Carl Vinson, a Nimitz-class aircraft carrier, as it departs its home port in San Diego, California August 22, 2014. REUTERS/Mike Blake/File Photo

WASHINGTON (Reuters) – Expanding the U.S. Navy to 355 ships as recommended by military leaders and backed by President Donald Trump would cost some $400 billion more over the next 30 years than the currently planned 308-ship fleet, according to a study released on Monday.

The annual cost to build, crew and operate a 355-ship fleet would be about $102 billion, or 13 percent more than the $90 billion needed for the currently planned Navy, according to the study by the nonpartisan Congressional Budget Office.

The $102 billion cost of the 355-ship fleet is 33 percent more than Congress appropriated in 2016 for the current 275-ship Navy, the CBO said.

To achieve the larger force, the Navy would need $26.6 billion annually for ship construction, which is 60 percent more than the average amount that Congress has appropriated for shipbuilding in the past 30 years, the CBO study said.

The Navy’s 2017 shipbuilding plan called for boosting the size of the fleet to 308 ships, which was expected to cost $21.2 billion per year to implement over 30 years.

With Trump pressing for an expansion of the fleet to 350 ships during the presidential campaign last year, the Navy released a new force structure assessment in December seeking a 355-ship Navy.

Taking into consideration older ships being retired, creating a 355-ship fleet would require the Navy to buy about 329 new ships over 30 years, compared with 254 under its previous plan for a 308-ship fleet, the CBO study found. The Navy would have to buy about 12 ships per year under the larger fleet plan, versus about eight per year under the earlier plan.

The larger fleet would require more civilian and uniformed personnel and more aircraft, pushing up overall operating costs, the CBO said.

The increase in shipbuilding would force all seven U.S. shipyards to expand their work forces and improve their infrastructure in order to meet the demand for vessels, the CBO said. The greatest challenge would be building submarines to meet the force structure requirements, the report said.

The study said the earliest the Navy could achieve a 355-ship fleet would be the year 2035, or 18 years from now.

(Reporting by David Alexander; Editing by Bill Trott)

Lawyer urges Trump to press Iran on jailed U.S. father and son at nuclear talks

Lawyer Jared Genser and Babak Namazi, the brother and son of two prisoners in Iran, who hold both U.S. American and Iranian citizenship and who have been sentenced to lengthy prison terms in Iran, address the media in Vienna, Austria, April 25, 2017. REUTERS/Leonhard Foeger

VIENNA (Reuters) – The lawyer of an American-Iranian father and son jailed in Iran called on U.S. President Donald Trump to get his officials to press for the men’s release at nuclear talks with Tehran on Tuesday.

An Iranian court sentenced 46-year-old Siamak Namazi and his 80-year-old father Baquer Namazi to 10 years in prison each in October on charges of spying and cooperating with the United States.

The Namazis’ lawyer, Jared Genser, said he had traveled to the nuclear talks venue in Vienna with Siamak’s brother, Babak, to encourage Washington’s delegation to press the case, adding that he was worried about the detained men’s health.

The lawyer said a senior administration official in the U.S. delegation had told him on Monday that the case would be raised directly during the talks on the implementation of a deal reached in 2015 to shrink Iran’s nuclear programme in exchange for sanctions relief.

A State Department spokeswoman did not comment directly on the case, but said: “We continue to use all the means at our disposal to advocate for U.S. citizens who need our assistance overseas.”

Iran has not commented on the Namazis’ prison conditions but has repeatedly said that political prisoners are kept under standard condition in Evin prison with full access to medical care.

“In our view, something happening to the Namazis would be devastating not just to one side but to both sides,” Genser told reporters in a hotel near the venue.

“For either or both of the Namazis to die on (Trump’s) watch would be a public and catastrophic failure of his negotiating skills,”

Iran’s Islamic Revolutionary Guard Corps detained Siamak Namazi, a businessman, in October 2015 while he was visiting family in Tehran, relatives said.

The IRGC arrested his 80-year-old father, Baquer Namazi, a former Iranian provincial governor and former UNICEF official in February lat year, family members said.

Soon after the sentencing and days before he won the presidential election, Trump said on Twitter: “Iran has done it again … This doesn’t happen if I’m president!”

(Reporting By Shadia Nasralla; Editing by Andrew Heavens)

Trump greets Egyptian-American freed from Egyptian detention

Aya Hijazi, an Egyptian-American woman detained in Egypt for nearly three years on human trafficking charges, meets with U.S. President Donald Trump in the Oval Office of the White House in Washington, U.S., April 21, 2017. REUTERS/Kevin Lamarque

By Steve Holland

WASHINGTON (Reuters) – President Donald Trump on Friday welcomed back to the United States Aya Hijazi, an Egyptian-American charity worker whose release from jail in Egypt was sought by Trump when he met Egypt’s president early this month.

Trump and his aides had engaged in behind-the-scenes diplomatic efforts to gain her freedom after attempts by the previous Obama administration failed.

She was released from jail on Tuesday after nearly three years of detention on human trafficking charges. Aides said Trump had personally requested her release in a meeting April 3 with Egyptian President Abdel Fattah al-Sisi but had done so privately and made no public mention of her case.

Hijazi, 30, sat next to Trump in the Oval Office for a meeting that also included Trump’s daughter, Ivanka Trump, her husband, Jared Kushner, and Dina Powell, the top White House aide who accompanied her home on a U.S. military jet on Thursday. Ivanka Trump and Kushner are top advisers to the president.

“We are very happy to have Aya back home and it’s a great honor to have her in the Oval Office, with her brother,” Trump said, declining to answer questions about her case. Hijazi was accompanied by her brother, Basel.

Hijazi, an Egyptian who holds U.S. citizenship, was acquitted by a Cairo court on Sunday along with seven others who had worked with street children.

Hijazi, 30, was flown to Joint Base Andrews, the U.S. military airfield near Washington. She founded Belady, a non-governmental organization that promotes a better life for street children.

She had been in custody for 33 months in violation of Egyptian law, which states that the maximum period for pretrial detention is 24 months.

U.S. officials had raised Hijazi’s case with Egypt soon after Trump took office on Jan. 20, aides said.

Pressed on how Trump managed to gain her release when President Barack Obama had not, White House spokesman Sean Spicer said he would leave it to others “to look at the different strategies to see why the president was successful” and Obama was not. Critics had accused the Obama administration of indifference to her case.

Since toppling President Mohamed Mursi of the Muslim Brotherhood in mid-2013, Sisi’s government has cracked down on the opposition, killing hundreds of Brotherhood supporters and jailing thousands. The net has widened to include liberal and secular activists.

Two Republican U.S. senators, John McCain of Arizona and Lindsey Graham of South Carolina, called on the Egyptian government to take more steps to improve human rights.

“We urge the Government of Egypt to build on this important first step by releasing all those who have been wrongly imprisoned, upholding its international human rights obligations, and respecting the Egyptian people’s right to freedom of expression and rule of law,” they said in a statement.

(Reporting by Steve Holland, additional reporting by Mohammed Zargham; Editing by Alistair Bell)

U.S. scientists to protest Trump policies at Earth Day rally in Washington

By Ian Simpson

WASHINGTON (Reuters) – U.S. scientists will stage an unprecedented protest on Saturday, a March for Science provoked by steep cuts President Donald Trump has proposed for science and research budgets, and growing disregard for evidence-based knowledge.

The march in Washington, timed to coincide with the Earth Day environmental event, will put Trump’s questioning of climate change and proposed cuts to federal science programs at center stage.

Demonstrations are also scheduled in U.S. cities including San Francisco, along with smaller towns like Dillingham, Alaska. Overseas, people are due to rally in support of science from Australia to Brazil.

Participants say the Washington march will be nonpartisan and marks a new frontier for scientists more accustomed to laboratories and classrooms than activism in the streets.

“It has dawned on some of them it is time to speak up,” Rush Holt, chief executive of the American Association for the Advancement of Science, told reporters on a conference call this week. “I wouldn’t say that it is fundamentally because of Donald Trump, but there’s no question that there’s been concern in recent months about all sorts of things.”

The White House did not respond to a request for comment.

Trump has called climate change a hoax. His administration is mulling withdrawing from the so-called Paris Agreement aimed at reducing global emissions of carbon dioxide and other greenhouse gases.

Trump’s proposed 2018 budget calls for deep spending cuts by government science agencies, including a 31 percent reduction for the Environmental Protection Agency.

Rally organizers are also worried by what they see as growing skepticism from politicians and others on topics such as vaccinations, genetically modified organisms and evolution.

“It’s really the age-old debate of the rational view of the universe against the irrational view of the universe,” Elias Zerhouni, former director of the National Institutes of Health, said on the conference call.

Guests at the Washington event will include television personality Bill Nye “the Science Guy,” former White House technology aide Megan Smith and Dr. Mona Hanna-Attisha, a pediatrician who helped expose the lead water crisis in Flint, Michigan.

But some questioned whether scientists should play a political role, and whether the march would change the minds of Trump, his top aides, or skeptical voters.

“We need to go to county fairs, and we need to personalize the scientific issues we care about,” said geologist Rob Young, a professor at North Carolina’s Western Carolina University.

(Reporting by Ian Simpson; Editing by Daniel Wallis and David Gregorio)

Pence says United States will honor refugee deal with Australia

U.S. Vice President Mike Pence (L) shakes hands with Australia's Prime Minister Malcolm Turnbull after a media conference at Admiralty House in Sydney, Australia, April 22, 2017. REUTERS/Jason Reed

By Colin Packham and Roberta Rampton

SYDNEY (Reuters) – U.S. Vice President Mike Pence said on Saturday the United States would honor a controversial refugee deal with Australia, under which the United States would resettle up to 1,250 asylum seekers, a deal President Donald Trump had described as “dumb”.

Pence told a joint news conference with Australian Prime Minister Malcolm Turnbull that the deal would be subject to vetting, and that honoring it “doesn’t mean that we admire the agreement”.

“We will honor this agreement out of respect to this enormously important alliance,” Pence said at Turnbull’s harbor side official residence in Sydney.

Australia is one of Washington’s staunchest allies and has sent troops to fight alongside the U.S. military in conflicts in Iraq and Afghanistan.

Under the deal, agreed with former President Barack Obama late last year, the United States would resettle up to 1,250 asylum seekers held in offshore processing camps on South Pacific islands in Papua New Guinea (PNG) and Nauru.

In return, Australia would resettle refugees from El Salvador, Guatemala and Honduras.

The White House has already said it would apply “extreme vetting” to those asylum seekers held in the Australian processing centers seeking resettlement in the United States.

The deal has taken on added importance for Australia, which is under political and legal pressure to shut the camps, particularly one on PNG’s Manus Island where violence between residents and inmates flared last week.

Asylum-seeker advocates welcomed the U.S. commitment, although they remained concerned that “extreme vetting” could see fewer than 1,250 resettled in the United States.

“What still isn’t clear is how many people will have this opportunity, and that clarity must be provided,” said Graham Thom, Refugee Coordinator at Amnesty International Australia.

“The violence on Manus Island last weekend only further demonstrates that the Australian government needs to give a clear commitment that no refugee or person seeking asylum will be left behind in Papua New Guinea or Nauru,” he said.

ACRIMONIOUS CALL

An inquiry by an upper house Senate committee in Australia said the government must be more transparent about the operations of the processing centers in PNG and Nauru, which are run by contractors.

The report, released on Friday, also said the Australian government had a duty of care to the asylum seekers being held in the camps.

Australia’s relationship with the new administration in Washington got off to a rocky start when Trump lambasted Turnbull over the resettlement arrangement, which Trump labeled a “dumb” deal.

Details of an acrimonious phone call between the pair soon after Trump took office made headlines around the world.

Turnbull acknowledged Trump’s reluctance, but said the U.S. commitment was a measure of Trump’s new U.S. administration.

“It speaks volumes for the commitment, the integrity of President Trump,” he said.

Pence was speaking on the final leg of a 10-day tour of the Asia-Pacific region that included meetings with political and business leaders in South Korea, Japan and Indonesia.

His trip to Australia is the first by a senior official in the Trump administration as the United States looks to strengthen economic ties and security cooperation amid disputes in the South China Sea and tension on the Korean peninsula.

(Reporting by Roberta Rampton and Colin Packham; Additional reporting by Peter Gosnell; Writing by Paul Tait; Editing by Jacqueline Wong)

Top U.S. officials to testify in Trump-Russia probe reboot

Senate Intelligence Committee Chairman Sen. Richard Burr (R-NC), accompanied by Senator Mark Warner (D-VA), vice chairman of the committee, speaks at a news conference to discuss their probe of Russian interference in the 2016 election on Capitol Hill in Washington, D.C., U.S., March 29, 2017. REUTERS/Aaron P. Bernstein

By Patricia Zengerle

WASHINGTON (Reuters) – The U.S. House of Representatives Intelligence Committee said on Friday it had invited FBI, NSA and Obama administration officials to testify as it restarts its investigation into alleged Russian meddling in the 2016 U.S. election.

After stalling over the committee chairman’s ties to President Donald Trump’s White House and disagreements over who should testify, the bipartisan committee said it sent a letter inviting James Comey, director of the Federal Bureau of Investigation, and Admiral Mike Rogers, director of the National Security Agency, to appear behind closed doors on May 2.

A second letter invited three officials who left the government as President Barack Obama’s administration ended – former CIA Director John Brennan, former Director of National Intelligence James Clapper and former Deputy Attorney General Sally Yates – to appear at a public hearing to be scheduled after May 2.

The planned hearings are the first the committee has announced since its chairman, Republican Representative Devin Nunes, recused himself from the Russia investigation on April 6 after receiving information at the White House about surveillance that swept up some information about members of Trump’s transition team.

Echoing Trump, Nunes suggested that Obama’s administration had handled that information incorrectly.

Nunes remains the committee’s chairman.

TIES TO TRUMP

Comey and Rogers testified in a public hearing on March 20. At that hearing, Comey confirmed for the first time that the FBI was investigating possible ties between Trump’s presidential campaign and Russia as Moscow sought to influence the election.

Nunes was a supporter of Trump’s campaign and a member of his transition team. His decision two days after the public hearing to hold a press conference about the information and discuss it with Trump before disclosing it to Democrats raised questions about whether he could lead a credible investigation.

Committee Democrats also were angered when Nunes scrapped a scheduled public hearing with Brennan, Yates and Clapper. A planned closed hearing with Comey and Rogers also was put off.

The House panel is examining whether Russia tried to influence the election in Trump’s favor, mostly by hacking Democratic operatives’ emails and releasing embarrassing information, or possibly by colluding with Trump associates.

Russia denies the allegations, which Trump also dismisses.

The Senate Intelligence Committee is conducting a separate, similar investigation.

Senate investigators currently are interviewing analysts and intelligence agents who prepared public and classified reports in January that concluded that Russia had interfered in last year’s election on Trump’s behalf, an official familiar with the congressional activity said.

At this point they are a long way from scheduling interviews or hearings with any principal witnesses from either the Obama or Trump administrations, the official said.

(Reporting by Patricia Zengerle, additional reporting by Mark Hosenball; Editing by Cynthia Osterman and Mary Milliken)

Trump, Republicans face tricky task of averting U.S. government shutdown

FILE PHOTO: U.S. President Donald Trump's overview of the budget priorities for Fiscal Year 2018 are displayed at the U.S. Government Publishing Office (GPO) on its release by the Office of Management and Budget (OMB) in Washington, U.S. on March 16, 2017. REUTERS/Joshua Roberts/File Photo

By Richard Cowan and David Morgan

WASHINGTON (Reuters) – President Donald Trump and his fellow Republicans who control Congress face their first major budget test next week, with the threat of a U.S. government shutdown potentially hinging on his proposed Mexican border wall as well as Obamacare funding.

With Republicans controlling the White House and both chambers of Congress, keeping the federal government operating is a basic test of their ability to govern, but their task could become even more complicated if they insist on using the spending legislation to bring about contentious policy changes.

Not only must Republicans overcome intraparty ideological divisions that stopped major healthcare legislation last month, but they will have to win over some opposition Democrats with provisions that could be distasteful to conservatives.

With the Senate reconvening on Monday and the House of Representatives on Tuesday after a two-week recess, lawmakers will have only four days to pass a spending package to keep the government open beyond April 28, when funding expires for numerous federal programs.

“I think we want to keep the government open,” Trump said on Thursday, adding he thinks Congress can pass the funding legislation and perhaps also a revamped healthcare bill.

Democratic support depends on what provisions Republicans demand in the bill. Democrats have signaled they would not cooperate if it contains money for one of Trump’s top priorities, a southwestern border wall intended to combat illegal immigration, or if it ends federal subsidies to help low-income people buy health insurance under the Affordable Care Act, known as Obamacare, which Republicans want to repeal.

Democrats also want federal funds maintained for Planned Parenthood, which many Republicans oppose because the women’s healthcare provider performs abortions. Another obstacle would be if Trump demands large defense spending increases coupled with deep cuts to domestic programs Democrats want to protect.

BALANCING ACT

Late on Thursday, leading House Democrats were voicing skepticism a deal could be reached by the deadline. In a telephone call for House Democrats, Representative Nita Lowey, the senior Democrat on the House Appropriations Committee, said: “I don’t see how we can meet that deadline” and avoid having to pass a short-term extension, according to an aide on the call.

The second-ranking House Democrat, Representative Steny Hoyer, told his fellow Democrats that they should only support such a short-term measure if a deal on long-term bill is reached and only finishing touches remained, the aide said.

Republican leaders face a familiar balancing act: satisfying the party’s most conservative members while not alienating its moderates.

Rules in the 100-seat Senate mean Trump’s party also would need the support of at least eight Democrats even if the Republicans remain unified, giving the opposition party leverage. House Republican leaders would need some Democratic votes if the most conservative lawmakers object to the bill, as they did to the healthcare plan championed by Speaker Paul Ryan.

With congressional elections looming next year, Republicans acknowledge the stakes are high.

“Even our most recalcitrant members understand that if you shut down the government while you’re running it and you control the House and the Senate, you can’t blame anybody but yourself,” said Representative Tom Cole, a senior House Appropriations Committee Republican.

White House budget director Mick Mulvaney said the Trump administration was willing to talk to Democrats about funding for Obamacare subsidies in exchange for their agreement to include some Trump priorities such as the wall, the defense hike and more money for immigration enforcement.

“It is ripe for some type of negotiated agreement that gives the president some of his priorities and Democrats some of their priorities. So we think we’ve opened the door for that,” Mulvaney said.

Democrats reacted negatively.

“Everything had been moving smoothly until the administration moved in with a heavy hand. Not only are Democrats opposed to the wall, there is significant Republican opposition as well,” said Matt House, a spokesman for Senate Democratic leader Chuck Schumer.

FURLOUGH ‘LADY LIBERTY?’

The government was last forced to close in October 2013, when Republican Senator Ted Cruz and some of the most conservative House Republicans engineered a 17-day shutdown in an unsuccessful quest to kill Democratic former President Barack Obama’s healthcare law.

“These kind of bills can’t pass without a reasonable number of the party of the minority in the Senate, and we are optimistic we will be able to work all that out,” Senate Majority Leader Mitch McConnell said at the start of the spring recess.

A deal is needed because Congress was unable to approve funding for the entire 2017 fiscal year that ends in September and has relied on stop-gap spending legislation.

Congress has passed no major legislation since Trump took office in January, and he has ambitious hopes for major tax-cut legislation, infrastructure spending and other bills.

With the difficulty passing a bill with so many divisive elements, lawmakers next week might need to buy time by passing a short-term bill lasting possibly one to three weeks, maintaining current spending levels.

“That would be a setback: not catastrophic, but not a good thing, and a sign that you can’t govern,” Cole said.

A federal closure would shutter National Park Service destinations like the Statue of Liberty, Yellowstone and the Grand Canyon. Government medical research would be suspended. Thousands of federal workers would be furloughed with thousands more working without pay until the shutdown ends, including homeland security personnel. Some veterans benefits could be suspended.

Time would stand still in the U.S. Capitol with nobody on duty to wind the 200-year-old “Ohio Clock” just outside the Senate chamber.

(Reporting by Richard Cowan and David Morgan; Editing by Kevin Drawbaugh and Will Dunham)

Trump to order U.S. Treasury to delve into taxes, post-crisis reforms

U.S. President Donald Trump holds a joint news conference in Washington, U.S., April 20, 2017. REUTERS/Aaron P. Bernstein

By Lisa Lambert

WASHINGTON (Reuters) – U.S. President Donald Trump will order the Treasury on Friday to find and reduce tax burdens and review post-financial crisis reforms that banks and insurance companies have said hinder their ability to do business.

A White House official said on Thursday that Trump will issue an executive order directing the Treasury on the tax issues. He will also issue two memoranda asking for reviews of two parts of the 2010 Dodd-Frank Wall Street reform law – the Orderly Liquidation Authority that sets out how big banks can wind down during a crisis and the Financial Stability Oversight Council (FSOC), which is made up of the country’s top regulators.

The orders, which Trump will sign at the Treasury Department, next door to the White House, comes as the president works toward making good on a major campaign promise to lower taxes.

Treasury Secretary Steven Mnuchin will review significant tax regulations issued in 2016 to determine if any impose an undue financial burden on American taxpayers, add undue complexity or exceed statutory authority, the official’s statement said.

Mnuchin said earlier on Thursday that Treasury is working on tax reform “day and night” and will soon create a sweeping overhaul.

Congress recently failed in efforts to make good another Trump campaign promise to reform healthcare.

House of Representatives Speaker Paul Ryan said this week that the country’s first tax overhaul in decades may not be done until well into 2017. The review that Trump is ordering gives the administration a way to approach the issue independent of Congress.

The liquidation authority and the FSOC were both created as part of the Dodd-Frank law intended to prevent a repeat of the 2007-09 financial crisis, when the U.S. government injected billions of dollars in aid into failing banks to keep them from destroying the country’s economy.

In February Trump ordered a review of the law, saying he wanted to cut out much of it, and Mnuchin has said he would like to look into how the council, which he chairs, works.

House Republicans are also working to loosen Dodd-Frank regulations. Banks say the regulations have hurt their liquidity and created burdensome processes.

Trump will order an assessment of how the FSOC designates a financial institution as “systemically important,” which triggers requirements to hold more capital in case it comes into crisis.

Republican lawmakers say the FSOC uses a flawed process lacking transparency to designate non-bank institutions. Only two insurers, American International Group Inc and Prudential Financial Inc, currently carry the label, and a judge last year struck down the council’s designation of MetLife Inc.

Mnuchin will have 180 days to report to Trump on the liquidation authority, a tool for federal banking regulators to use if they need to step in during a financial emergency and help a failing bank unwind. The report will offer views on using bankruptcy as an alternative, the impact of failing companies on financial stability, and whether the authority could drive up taxpayer costs or encourage excessive risk-taking.

(Writing by Eric Beech and Lisa Lambert; Editing by Cynthia Osterman and Leslie Adler)

Special Report: Thousands face lead hazards as Trump eyes budget cuts

MD Chowdhury sits in his living room with his wife, Nazneen Fatema, and daughters, Nafia, 2, and Nabiha (R), 7, during an interview about lead safety improvements made to their lead contaminated home in Buffalo, New York March 30, 2017. REUTERS/Lindsay DeDario

By M.B. Pell, Joshua Schneyer and Andy Sullivan

BUFFALO, New York (Reuters) – Laicie Manzella lived in a rundown house on Buffalo’s east side when three of her children tested with dangerously high levels of lead in their blood. Her oldest son suffered nosebleeds, body rashes and a developmental disorder requiring speech therapy.

Checking her apartment, county health inspectors found 15 lead violations, all linked to old paint in this blue collar city plagued by lead poisoning.

A Reuters investigation found at least four city zip codes here where 40 percent of children tested from 2006 to 2014 had high lead levels, making Buffalo among the most dangerous lead hotspots in America. The rate of high lead tests in these areas was far worse – eight times greater – than that found among children across Flint, Michigan, during that city’s recent water crisis.

Federal support has helped Manzella and other families in Buffalo and beyond. This month, her family moved into a gleaming, lead-free apartment renovated by a local nonprofit with funding from the U.S. Department of Housing and Urban Development.

This type of assistance may not last much longer. President Donald Trump is advocating deep federal budget cuts that would sap billions from programs used by state and local governments to protect children from the lifelong health impacts of lead exposure.

“If they go and snatch these funds away, where are we going to get help from?” Manzella said.

It’s a question being asked in cities across the United States bracing for cuts in programs that identify and eradicate lead poisoning hazards. Awareness of lead poisoning escalated following Flint’s crisis, and more recently from Reuters reporting that has identified more than 3,300 areas with childhood lead poisoning rates at least double those found in the Michigan city.

Some of the areas slated to be hit hardest supported Trump in November’s election, though he lost Erie County, where Buffalo is the county seat.

At least eight of the nine federal agencies sharing responsibility for lead poisoning prevention face potential budget cuts. But the heaviest lifting falls to HUD, the Centers for Disease Control and Prevention, and the Environmental Protection Agency. Trump’s budget would cut at least $4.7 billion from programs at HUD and the EPA that support healthy housing and lead pollution cleanup efforts, a Reuters analysis found. Funding for a CDC program that assists states with poisoning prevention is uncertain.

Cuts would be felt across the country. The Trump administration would eliminate a $27 million program that trains private contractors on lead removal, and a $21 million program that funds lead abatement projects in Alaska, Illinois, Ohio, Oklahoma and California. It would kill a program that provided funds to a Rhode Island nonprofit to upgrade housing, and end a $970 million affordable-housing program that has fixed up dilapidated homes in hundreds of U.S. cities, including Flint.

If the cuts clear Congress, some experts fear the fight against lead could stall out for years.

“We are dooming future generations,” said Dr. Gale Burstein, health commissioner in Erie County. “Exposure to high lead levels causes brain damage to kids, learning disabilities and behavioral challenges.”

Instead of saving money, the cost of inaction could spiral, Burstein said. More children would be afflicted by learning disabilities and other neurological problems, leaving localities to foot the bill for treatment programs.

White House officials declined to comment.

Decades of lead abatement have sharply curbed childhood lead levels across the United States. But studies have shown no level of lead in the blood is safe, and poisoning persists in thousands of locales.

PINPOINTING HOTSPOTS

In December, Reuters used previously undisclosed data obtained from 21 states to pinpoint nearly 3,000 U.S. neighborhoods where poisoning rates among tested children were at least twice as high as in Flint.

Reporters have since obtained testing results covering eight additional states and expanded data from two more, including New York, Louisiana, New Jersey, Virginia, New Hampshire and California. The new data reveal another 449 neighborhoods with rates that high.

The communities stretch from affluent neighborhoods in the Los Angeles area to an impoverished quarter of Shreveport, Louisiana, to a rural town in Salem County, New Jersey, where Trump won 56 percent of the vote in November.

The data paints a partial picture. Reuters has not obtained neighborhood-level testing results for 21 states and the District of Columbia. These areas cited privacy concerns or said they do not have the data.

Still, the available results show the toxic metal remains a threat to millions of children.

Federal programs fund testing for children, cleanup of industrial lead hazards and poisoning-awareness efforts. Other programs require inspections or abatement in housing built before 1978, when lead was banned from residential paint.

The few planned funding increases under Trump may not be as beneficial as they appear. HUD’s Healthy Homes and Lead Hazard Control Program is slated to receive a $20 million boost, but the agency has proposed eliminating $4.1 billion worth of grant programs local officials say play a bigger role in reducing risks.

“I think you’re going to see more children, not fewer children, exposed to lead,” said Senator Jack Reed, a Democrat who has sought more funding for lead-abatement programs on the Senate subcommittee that funds HUD.

Congress, which controls federal spending, may not go along. A spokeswoman for Senator Susan Collins described lead-based hazards as “one of the most prevalent health issues facing children today.” She said the Maine Republican would use her position as head of the subcommittee that controls HUD’s budget to oppose cuts.

BUFFALO A HOTBED FOR LEAD

Buffalo has long fought a legacy of lead contamination. Blood data shows 17 city zip codes where the rate of tested children with high lead levels was at least double that of Flint – about 8,000 children over nine years.

“Nobody’s talking about Buffalo as ground zero for the lead problem, but when it comes to the levels of lead that’s been identified in children, it’s higher than what you see in Flint,” said Erie County Executive Mark Poloncarz.

Buffalo’s problem stems from a simple equation: Old houses plus high poverty equal lead poisoning. Older homes are often blanketed with lead paint, and the water pipes and fixtures typically contain lead. In poorer neighborhoods, homes are frequently neglected, leading to exposure from peeling paint or dust. Fifty-eight percent of the city’s housing was built before 1940; nearly 40 percent of residents live below the poverty line.

Still, Buffalo and Erie County have made progress. In 2007, three city zip codes had 50 percent of tested children with high lead levels. By 2014, the prevalence in those zip codes dropped to an improved, but still worrisome, 30 percent.

Progress came thanks to millions of dollars in federal assistance flowing to local programs.

From 2012 through 2016, Buffalo was granted $27.7 million from the now-threatened HUD HOME Investment and Partnerships Program. HUD’s blessing brought far greater resources to bear, with city, county and nonprofits using the grant to attract another $200 million to revitalize or replace 1,125 housing units, making them all lead-safe.

Among those helped: The Chowdhurys, a family of five who moved to the east side of Buffalo in 2010, settling in a neighborhood with one of the highest lead poisoning rates in the country.

Within two months, their one-year-old daughter, Nabiha, was found to have a lead level about twice that of the elevated threshold set by the CDC, five micrograms per deciliter. Any child at or above CDC’s threshold warrants a public health response, the agency says.

MD Chowdhury, a restaurant waiter, and his wife, Nazneen Fatema, didn’t know how their daughter was poisoned or how to help her, but Buffalo and Erie County did.

Local officials dispatched housing inspectors, nurses and contractors to identify and repair the lead hazards in the family’s home. Replacing the lead-paint coated windows and siding and installing a new roof cost about $40,000. Federal grant programs footed the bill.

Erie County’s Health Department receives $244,000 a year from the CDC to help fund five full-time employees and three part-time employees who refer at-risk children for testing, investigate the causes of lead poisoning and conduct educational home visits. Those staffers helped the family.

Chowdhury also took EPA-funded classes on how to safely remove lead-based-paint so he could do additional work himself.

Two years ago, the couple had another daughter. She has never tested high.

“Without these programs, it’s hard to know about lead, and my income is not enough to do all of the work we needed,” Chowdhury said.

Trump’s budget proposal would kill much of the funding that helped the family through its ordeal.

Buffalo Mayor Byron Brown said the case illustrates the larger peril of potential funding cuts. “There would be people who would fall through the cracks,” he said.

CARSON’S MIXED MESSAGE

While working as a pediatric neurosurgeon in Baltimore, Dr. Benjamin Carson saw the irreversible damage lead can cause in the brains of children living in substandard housing.

At his confirmation hearing in February to serve as Trump’s secretary of HUD, Carson told the Senate Banking Committee he would be “vigorous” in his efforts to reduce the tally of hundreds of thousands of poisoned children across the country.

“I’m looking forward to, you know, the Safe and Healthy Homes Program at HUD and enhancing that program very significantly,” Carson said.

But even Carson’s requested $20 million increase for HUD’s lead removal program falls short of the $29 million his agency says is needed to comply with a new policy that requires lead remediation of HUD properties where children have tested above the CDC threshold.

Other housing programs that play a bigger, if more indirect, role in protecting children’s health would be eliminated altogether.

Among them: the $125 million Choice Neighborhoods program, which provided funding to remove lead paint from New Orleans’ aging Iberville housing project, and the $970 million HOME Partnerships program, which helped the Chowdhurys clean up their house in Buffalo.

The biggest casualty could be HUD’s $3 billion Community Development Block Grant program.

Local officials use CDBG grants to fund projects from curb construction to rehabilitating old housing, with only a small portion, $10 million, directly used for lead safety standards in the most recent fiscal year.

But CDGB is crucial to poisoning prevention, since housing-related projects it helps are required to meet HUD guidelines for lead safety, said Marion McFadden, who oversaw HUD’s grant programs under President Barack Obama.

“If (cuts are) enacted, it would be a huge step backward,” McFadden said.

CDBG funds went toward lead-paint removal in cities including Milwaukee, Syracuse and Shreveport, Louisiana. All three had neighborhoods with documented lead poisoning rates at least twice Flint’s.

BUDGET CUTS IN AMISH COUNTRY

Health officials in the small city of York, Pennsylvania, two hours west of Philadelphia in Amish country, know how budget cuts like this can play out.

The city and surrounding York County, where Trump won 70 percent of the vote in November, have a serious lead poisoning problem. From 2005 through 2014, at least 30 percent of children tested in all but one of York’s census tracts had elevated lead exposure, according to CDC data. In one census tract, more than half of all tested children had high lead levels.

Trump lost the city of York, but other patches of the county hit hard by lead poisoning, including the borough of Red Lion, where 21 percent of children tested had high levels, overwhelmingly supported him.

In the mid 1990s, York had seven full-time and part-time employees working in the city’s lead prevention program who conducted screening and investigated lead exposure sources. Since then, CDC cuts have left the program with one part-time employee and no ability to conduct screening.

The results are telling. In 2005, 1,641 city children were screened for lead. In 2014, 169 kids received a lead test.

Trump’s plan to eliminate the $375,000 in Home Partnership funds the city uses to develop lead-safe housing would have dire consequences, said James Crosby, deputy director of the city’s Bureau of Housing Services.

“It would mean we would be out of business,” Crosby said. “If he eliminates the home program, we would have absolutely nothing.”

A HUD spokesman declined to comment on the impact the cuts would have. “HUD will continue to work very closely with state and local health and housing officials through targeted investments in specific programs to reduce childhood lead poisoning,” he said.

CUTS AT THE EPA

A similar pattern is emerging at the EPA, where Administrator Scott Pruitt is highlighting some lead remediation efforts while pushing to gut funding to enforce pollution laws and clean up contaminated sites.

During the confirmation process, Pruitt told lawmakers he would work to reduce exposure to lead. On Wednesday he visited East Chicago, Indiana, where the EPA has secured $42 million from chemical companies to remove contaminated soil from neighborhoods near a former lead-smelting plant. In one neighborhood, up to 20 percent of tested children had elevated lead-blood levels.

Trump’s budget proposal would preserve funding for the EPA program that helps cities like Flint buy new water pipes.

But Pruitt would slash other federal efforts, including a one-third cut of EPA’s Superfund and Brownfield programs, leaving hundreds of millions of dollars less to clean up areas contaminated by lead mining in southeast Missouri, tainted yards and parks in Omaha and old school buildings on the Standing Rock Sioux reservation in North Dakota.

Pruitt would also eliminate a $27 million program that trains private contractors on safe lead removal from buildings, internal documents show.

An EPA spokesman said the agency is weighing strategies to save taxpayers money while protecting the environment. “We’re trying to restore some accountability to these and other programs so that we can examine what has worked – and most especially, what hasn’t,” wrote spokesman J.P. Freire.

Funding levels for the CDC, which spent $17 million last year through the Childhood Lead Poisoning Prevention program to help state and local governments, have been the subject of great uncertainty.

Earlier this year Trump lobbied for a Republican health-care bill that would have repealed the Affordable Care Act. In the process, the bill would have eliminated the pool of public-health money that funds the CDC’s lead program. In March, the bill collapsed in the House of Representatives.

Last week, a White House official told Reuters the administration intends to keep funds flowing to the CDC program. By Monday, however, the official had backed away from that commitment and said the program’s fate is uncertain until the administration produces a more detailed budget proposal in May.

The last round of cuts to the CDC’s lead budget in 2011 slashed assistance to many state poisoning prevention programs.

Those cuts were a reason why Flint’s problems didn’t come to light sooner, said Mary Jean Brown, a public health specialist at Harvard University who directed CDC’s lead program at the time. Without the CDC lead program, Michigan conducted less monitoring of childhood blood levels from 2011 to 2014, and stopped reporting test results to the CDC.

This created “a big gap in data,” Brown said, contributing to Flint’s crisis going unchecked or being ignored by Michigan officials until a pediatrician, scientists and activists presented proof children had been sickened.

(Editing by Ronnie Greene)