Subdued by Harvey, Congress reconvenes facing fiscal tests

Church Volunteers work to remove Hurricane Harvey flood damage from a home in Houston, Texas, U.S. September 2, 2017.

By Susan Cornwell

WASHINGTON (Reuters) – Hurricane Harvey devastated Texas, but could bring some fiscal order to Washington where Republicans and Democrats will need to put political differences aside in order to approve spending to repair the damage from flooding in and around Houston.

Lawmakers returning to Washington after a month-long break are expected to swiftly agree to an initial request for nearly $8 billion in disaster aid. More requests will follow from the Trump administration, with the fractious Republicans who control the House of Representatives and the Senate determined to look capable of governing in a crisis.

Some estimates say Harvey could cost U.S. taxpayers almost as much as the total federal aid outlay of more than $110 billion for 2005’s record-setting Hurricane Katrina.

That sobering cost and the urgent needs of Harvey’s victims have helped to calm a fiscal storm that had threatened to engulf Congress and President Donald Trump ahead of Oct. 1. The rancor revolves around the deadline for lawmakers to approve a temporary spending measure to keep the government from shutting down, as well as the need to raise the nation’s debt ceiling.

“There’s reason to hope that in the wake of the tragedy in Texas … there will be a renewed sense of community and common purpose that can help get things done,” said Michael Steel, a Republican strategist who once worked as spokesman for former House Speaker John Boehner.

Before Harvey, Trump had threatened to veto such spending and trigger a shutdown if Congress refused to fund his proposed U.S.-Mexico border wall. He has dropped his threat, the Washington Post reported on Friday, making a shutdown less likely.

As of the Labor Day holiday weekend, approval by Congress was widely anticipated in late September of a stopgap bill, or continuing resolution, to continue current spending levels for two to three more months.

The need to help Hurricane Harvey victims “creates another reason as to why you’d want to keep the government open,” Republican Senator Roy Blunt said on NBC’s “Meet the Press” Sunday.

 

FRESH START WITH TRUMP

With much of Washington distracted by tensions with North Korea over its nuclear program, Congress must also raise the federal debt ceiling by the end of September or early October to stave off an unprecedented U.S. government debt default, which would shake global markets.

The debt ceiling caps how much money the U.S. government can borrow, and some conservatives are loath to raise it without spending reforms. U.S. Treasury Secretary Steven Mnuchin on Sunday said Congress should act quickly to increase the debt limit, otherwise relief funding for hurricane-ravaged areas of Texas might be delayed.

“Without raising the debt limit, I am not comfortable that we will get money to Texas this month to rebuild,” Mnuchin said on Fox News Sunday.

Blunt, a junior member of Senate Republican leadership, said it was possible lawmakers could tie legislation raising the debt ceiling to measures providing financial aid for recovery from Harvey. “That’s one way to do it,” he said on Meet the Press.

Montana Republican Senator Steve Daines said Friday he would prefer to see spending reforms attached to the borrowing ceiling. “We need to do something to reduce the debt.”

Senior Republicans were warning Trump not to anger Democrats by carrying through with his threat to curtail the Deferred Action for Childhood Arrivals (DACA) program for immigrant children, which Democrats widely support. Democratic votes will likely be needed to both raise the debt ceiling and prevent a shutdown.

Trump might have listened to them. Sources said on Sunday that he has decided to scrap the program that shields the young immigrants from deportation, but he will give Congress six months to craft a bill to replace it.

With his tendency to send conflicting policy signals and attack fellow Republicans, Trump may present the biggest uncertainty as Congress gets back to work.

The four top Republican and Democratic leaders of the Senate and House are set to hold a rare bipartisan meeting with Trump on Wednesday to chart a path forward for the multiple fiscal issues.

Senate Republican leader Mitch McConnell, who will attend the meetings, spent much of August feuding with Trump, who attacked the Kentuckian repeatedly on Twitter.

One Republican strategist said the Senate leader would not dwell on those tensions. “Basically every Republican senator is looking to put whatever nonsense happened on Twitter in August in the rear view mirror and focus on all the important work that needs to get done in September,” said Josh Holmes, a former chief of staff and campaign manager for McConnell.

 

(Additional reporting by David Morgan and Chris Sanders; Editing by Kevin Drawbaugh and Mary Milliken)

 

West Virginia’s worst flooding in a century kills 24

Emergency crews take out boats on a flooded I-79 at the Clendenin Exit, after the state was pummeled by up to 10 inches of rain on Thursday, causing rivers and streams to overflow into neighboring communities, in Kanawha County, West Virginia, June 24, 2016.

By David Bailey

(Reuters) – West Virginia’s three most devastated counties and possibly others will receive federal assistance after the state’s worst flooding in more than a century killed at least 24 people, officials said on Saturday.

President Barack Obama declared a major disaster for West Virginia and ordered federal aid to affected individuals in Kanawha, Greenbrier and Nicholas counties that could include grants for temporary housing, repairs and other programs.

Obama spoke with West Virginia Governor Earl Ray Tomblin on Saturday afternoon to give his condolences and make sure the governor has the federal resources he needs, White House spokesman Eric Schultz said.

West Virginia’s death toll from flooding is the highest for any U.S. state this year, with 16 deaths reported in Greenbrier County in southeast West Virginia, where the heaviest rain fell, and six in Kanahwa County, officials said.

The Federal Emergency Management Agency and state officials were assessing damage in at least six other counties and the state may ask for additional assistance, Tomblin said. Ohio and Jackson counties also reported one death each.

The death toll in West Virginia is the highest in any state from flooding this year. At least 16 people, including nine U.S. soldiers, were killed in flooding in Texas earlier in June.

Up to 10 inches (25.4 cm) of rain fell on Thursday in the mountainous state, sending torrents of water from rivers and streams through homes and causing widespread devastation.

Tomblin has declared a state of emergency in 44 of 55 counties and expects 400 members of the West Virginia National Guard to help rescue efforts on Saturday. About 32,000 homes and businesses remained without power on Saturday.

Hundreds of people have been rescued and search and rescue teams were looking for more people on Saturday, said Tim Rock, spokesman for the state Division of Homeland Security and Emergency Management.

Some towns were completely surrounded by water and hundreds of houses and buildings have been lost, Rock said.

The Greenbrier resort was closed indefinitely and PGA Tour officials said on Saturday the Greenbrier Classic golf tournament due to begin on July 7 had been canceled because of extensive flood damage.

West Virginia received one-quarter of its annual rainfall in a single day and multiple rivers surged to dangerous levels, including the Elk River, which broke a record at one stage that had stood since 1888.

(Reporting by David Bailey in Minneapolis and Jon Herskovitz in Austin, Texas; Editing by David Gregorio and Tom Brown)