California to give health clinics $20 million to counter possible Trump cuts

FILE PHOTO: Demonstrators protest over the repeal and replacement of Obamacare outside the offices of Republican congressman Darryl Issa in Vista, California, U.S., March 7, 2017. REUTERS/Mike Blake

By Lisa Lambert

WASHINGTON (Reuters) – California on Monday will announce plans to award $20 million in emergency grants to local health and Planned Parenthood clinics in anticipation of possible U.S. healthcare funding cuts, according to State Treasurer John Chiang’s office.

California and more than a dozen other Democratic-leaning states are fighting against regulatory changes and policies coming from Republican President Donald Trump and the Republican-controlled Congress.

The grants are intended to buy time for state lawmakers to address potential shortfalls caused by federal attempts to undo the Affordable Health Care Act, commonly called Obamacare, and to eliminate funding for women’s health and for contraception, the state said.

A California financing program will provide money for the grants, said Treasurer spokesman Marc Lifsher.

“The Community Clinic Lifeline Grant Program will help small or rural nonprofit clinics, including Planned Parenthood clinics, keep their doors open and provide critical services,” according to an announcement the Treasurer’s office posted on Friday.

Planned Parenthood, a national non-profit that provides contraception, health screenings and abortions, and the country’s long-standing divide over abortion are at the heart of the state’s move. Planned Parenthood representatives will join Chiang in unveiling the grant program, the announcement said.

Republicans generally oppose abortion. Recently, they approved a measure in Congress to allow states to block Planned Parenthood from receiving federal reproductive health funds. By law the funds cannot be used for abortions, but former Democratic President Barack Obama had ensured some money would go to Planned Parenthood clinics.

Actual federal funding reductions are still a while off.

In his recent proposed budget President Donald Trump called for slashing health and human services spending, and the Obamacare repeal the House of Representatives passed in April would eliminate federal funds for Planned Parenthood. But those moves do not have the force of law yet.

No other state appears to be developing a similar grant program.

(Reporting by Lisa Lambert; Editing by Cynthia Osterman)

Gulf crisis seen widening split in Syria rebellion

FILE PHOTO: A rebel fighter from the Ahrar al-Sham Islamic Movement reacts as they fire grad rockets from Idlib countryside, towards forces loyal to Syria's President Bashar al-Assad stationed at Jureen town in al-Ghab plain in the Hama countryside, Syria, April 25, 2015. REUTERS/Mohamad Bayoush/File Photo

By Tom Perry and Suleiman Al-Khalidi

BEIRUT/AMMAN (Reuters) – Confrontation between Qatar and Saudi Arabia is creating unease among Syrian rebels who expect the crisis between two of their biggest state backers to deepen divisions in the opposition to President Bashar al-Assad.

Together with Turkey and the United States, Qatar and Saudi Arabia have been major sponsors of the insurgency, arming an array of groups that have been fighting to topple the Iran-backed president. The Gulf support has however been far from harmonious, fuelling splits that have set back the revolt.

Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and transport ties with Qatar a week ago, accusing it of fomenting regional unrest, supporting terrorism and getting too close to Iran, all of which Doha denies.

It is the biggest rift among Gulf Arab states in years.

“God forbid if this crisis is not contained I predict … the situation in Syria will become tragic because the factions that are supported by (different) countries will be forced to take hostile positions towards each other,” said Mustafa Sejari of the Liwa al Mutasem rebel group in northern Syria.

“We urge our brothers in Saudi Arabia and Qatar not to burden the Syrian people more than they can bear.”

The Syrian rebellion can ill afford more internal conflict.

The opposition has been losing ground to Damascus ever since the Russian military deployed to Syria in support of Assad’s war effort in 2015. Assad now appears militarily unassailable, though rebels still have notable footholds near Damascus, in the northwest, and the southwest.

In the fractured map of the Syrian insurgency, Qatari aid has gone to groups that are often Islamist in ideology and seen as close to the Muslim Brotherhood – a movement that is anathema to Saudi Arabia, the United Arab Emirates and Egypt.

Turkey, which has swung firmly behind Qatar in the Gulf crisis, is thought to have backed the same groups as Qatar in northern Syria, including the powerful conservative Islamist faction Ahrar al-Sham.

Qatar is also widely believed to have ties to al Qaeda-linked jihadists of the group once known as the Nusra Front, which has rebranded since formally parting ways with al Qaeda and is now part of the Tahrir al-Sham Islamist alliance.

While Qatar has officially denied Nusra ties, it has mediated the release of hostages held by the group including Americans, Greek Orthodox nuns and members of the Lebanese security forces.

Saudi aid has meanwhile been seen as targeted more closely at groups backed through programs run by the U.S. Central Intelligence Agency – programs in which Qatar has also participated even as it has backed groups outside that channel.

The United Arab Emirates has also played an influential role in that program, together with staunch U.S. ally Jordan. These powers wield more influence in southern Syria than the north.

NORTH-SOUTH SPLIT

“It will increase the split between north and south, as the north is mainly funded by Qatar and Turkey, and the south is supported by Jordan and the (U.S.-led) coalition,” said an opposition source familiar with foreign support to the rebels.

A second opposition source, a senior rebel official, said the Gulf crisis “will certainly affect us, people are known to be with Saudi, or Qatar, or Turkey. The split is clear.”

Adding to rebel concerns, the crisis has also nudged Qatar closer to Iran, which has sent planes loaded with food to Doha. “Any rapprochement between Qatar and Iran, or any other state and Iran, is very concerning for us,” the rebel official said.

A senior Turkish official said it was very important that the Qatar crisis did not take on “further dimensions”.

“These developments will have certain effects on the developments in Syria, its effects will be seen on the field. The elements which Qatar supports may slightly weaken on the field,” the official said.

Opposition sources fear the Gulf crisis could spark new bouts of conflict, particularly in the Eastern Ghouta area near Damascus where the Saudi-backed Jaish al-Islam has been fighting the Qatari-backed Failaq al-Rahman intermittently for more than a year. That quarrel has helped government forces regain parts of the area.

The four Arab states that have turned against Qatar last week issued a list of dozens of people named as terrorists with links to Qatar, including prominent Islamist insurgent Sheikh Abdullah al-Muhaysini, a Saudi national based in Syria known for mobilizing support for jihadist groups.

The U.S. Treasury last year blacklisted him for acting on behalf of and supporting the Nusra Front, saying he had raised millions of dollars for the group.

(Additional reporting by Orhan Coskun in Turkey; writing by Tom Perry; editing by Peter Graff)

Gulf states squeeze Qatar as U.S., Kuwait probe for solution to row

Buildings are seen on a coast line in Doha, Qatar June 5, 2017. REUTERS/Stringer

By Tom Finn

DOHA (Reuters) – Gulf states cranked up the pressure on Qatar on Thursday as U.S. President Donald Trump and Kuwait’s emir worked to end an Arab row that Qataris say has led to a blockade of their country, an investment powerhouse and supplier of gas to world markets.

With Trump offering to help resolve the crisis, possibly with a meeting at the White House, the United Arab Emirates cut postal links to Qatar, and close Saudi ally Bahrain reiterated a demand that Doha distance itself from regional foe Iran.

Bahrain, Saudi Arabia, Egypt, the UAE and several other countries severed diplomatic and transport ties with Doha on Monday, accusing it of supporting Islamist militants and their arch-foe Iran – charges Qatar says are baseless.

Normally guarded about politics, Qataris expressed outrage.

“It is a blockade! Like that of Berlin. A declaration of war. A political, economic and social aggression,” a Qatari diplomat said. “We need the world to condemn the aggressors.”

With food and other supplies disrupted and worries mounting about deepening economic turbulence, banks and firms in Gulf Arab states were seeking to keep business links to Qatar open and avoid a costly firesale of assets.

Turkey has brought forward a troop deployment to Qatar and pledged to provide food and water supplies to its Arab ally, which hosts a Turkish military base. Turkish President Tayyip Erdogan has said isolating Qatar would not resolve any problems.

The UAE’s national postal service, Emirates Post Group, suspended all postal services to Qatar, state news agency WAM said, the latest in a series of measures degrading commercial and communications links with Doha.

The Abu Dhabi Petroleum Ports Authority also reimposed a ban on oil tankers linked to Qatar calling at ports in the UAE, reversing an earlier decision to ease restrictions, and potentially creating a logjam of crude cargoes.

Trump initially took sides with the Saudi-led group before apparently being nudged into a more even-handed approach when U.S. defense officials renewed praise of Doha, mindful of the major U.S. military base hosted by Qatar that serves, in part, as a launchpad for strikes on Islamic State jihadists.

In his second intervention in the dispute in as many days, Trump urged action against terrorism in a call with Qatari Emir Sheikh Tamim bin Hamad al-Thani, a White House statement said, suggesting a meeting at the White House “if necessary”.

It said that Trump, in a later call with Abu Dhabi’s crown prince, Sheikh Mohammed bin Zayed al-Nahayan, called for unity among Gulf Arabs “but never at the expense of eliminating funding for radical extremism or defeating terrorism”.

Officials from Qatar and its Gulf Arab neighbors embarked on a quickening round of shuttle diplomacy, with the Qatari foreign minister due in Moscow and Brussels and Bahrain’s king visiting his ally Egypt for talks on the crisis.

SAUDIS SAY OUTSIDE MEDIATION UNWANTED

Qatar called for “dialogue and diplomacy”.

The Qatari ambassador to Washington, Meshal Hamad al-Thani, wrote on Twitter that a key pillar of Doha’s foreign policy was mediation. “Open channels of communication means venues for conflict resolution,” he said.

But Saudi Foreign Minister Adel al-Jubeir said Gulf states could resolve the dispute among themselves without outside help.

“We have not asked for mediation, we believe this issue can be dealt with among the states of the Gulf Cooperation Council (GCC),” he told a news conference with his German counterpart during a visit to Berlin broadcast on Saudi state television.

The foreign minister of Oman met fellow GCC member Kuwait’s emir for talks. The Kuwaiti leader went to the UAE and Qatar on Wednesday for talks on the crisis and is now back in Kuwait.

In the meantime, Qatar’s neighbors kept up a drumbeat of criticism and warnings.

In an interview with BBC radio, UAE Ambassador to Russia Omar Saif Ghobash said Qatar had to choose between supporting extremism or supporting its neighbors.

“We have all kinds of recordings taking place where they (Qatar) are coordinating with al Qaeda in Syria,” he said.

“Qatar needs to decide: Do you want to be in the pocket of Turkey, Iran and Islamic extremists? They need to make a decision; they can’t have it both ways.

The Saudi newspaper al Watan published what it called a list of eight “extremist organizations” seen as working to destabilize the region from Qatar, including Qatar’s al Jazeera news channel, that were targeted by Gulf Arab states.

Qatar has backed Islamist movements but vehemently denies supporting terrorism. It provides a haven to anti-Western groups such as the Afghan Taliban, Palestinian Hamas and Algeria’s Islamic Salvation Front. Qatar says it does not accept its neighbors’ view that any group with an Islamist background is terrorist. Qatar’s emir has said such a view is a big mistake.

In an interview published by Saudi-owned Asharq al Awsat newspaper, Bahraini Sheikh Khalid bin Ahmed al-Khalifa said conditions posed by the four countries for a resolution of the crisis were “crystal clear”.

“NUMBER ONE ENEMY IRAN”

“Qatar has to redress its path and has to go back to all previous commitments, it has to stop media campaigns and has to distance itself from our number one enemy Iran.”

Jubeir declined to confirm a list of 10 demands published by Al Jazeera, which included shutting down the widely watched, Doha-based satellite network. But he added that Qatar knew what it needed to do to restore normal relations.

Turkey’s Erdogan called Kuwait’s ruler, Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, late on Wednesday and discussed developments in the Gulf and ways to cement cooperation between Muslim countries, the Kuwaiti state news agency KUNA said. Turkey, like Kuwait, has offered to mediate.

In a sign of the economic damage from the dispute, Standard & Poor’s downgraded Qatar’s debt on Wednesday as the country’s riyal currency fell to an 11-year low amid signs that portfolio investment funds were flowing out because of the rift.

UAE Minister of State for Foreign Affairs Anwar Gargash told Reuters more economic curbs would be imposed on Qatar if necessary and said Doha needed to make ironclad commitments to change what critics call a policy on funding Islamist militants.

He later told France 24 television that any further steps could take the form of “a sort of embargo on Qatar”.

In a measure that cemented earlier UAE restrictions on air transport, the country’s General Civil Aviation Authority said it had closed the air space for all air traffic to and from Doha until further notice.

Regional tensions have been aggravated by the worst dispute among Gulf Arabs for two decades and were ratcheted up further on Wednesday after militants attacked targets in Tehran, killing at least 12 people.

Shi’ite Muslim Iran blamed Sunni Muslim arch-rival Saudi Arabia for the attack, which was claimed by the Sunni Islamic State. Riyadh denied any involvement.

(Additional reporting by Reem Shamseddine, Aziz El Yaakoubi, Sylvia Westall, Sami Aboudi and Andrew Torchia, Writing by William Maclean, Editing by Mark Heinrich)

Funds shortage forces U.N. to cut emergency food aid for 400,000 in Nigeria

A woman sits outside a shed as she waits for food rations at an internally displaced persons (IDP) camp on the outskirts of Maiduguri, northeast Nigeria June 6, 2017. REUTERS/Akintunde Akinleye

By Ed Cropley

MAIDUGURI, Nigeria (Reuters) – The United Nations World Food Programme (WFP) has had to scale back plans for emergency feeding of 400,000 people in Boko Haram-hit northeast Nigeria due to funding shortfalls, a top U.N. official said on Wednesday.

The decision to cut aid for some believed to be on the brink of famine comes as the onset of the annual rains threaten to exacerbate the humanitarian crisis. Farmers have been unable to plant or harvest crops for years due to the Islamist insurgency.

“The plan was from the beginning to reach 1.8 million (people) this year but due to the funding constraints WFP has been forced to come up with a contingency plan,” said Peter Lundberg, the U.N.’s Deputy Humanitarian Coordinator in Nigeria.

The WFP is now focusing on supplying 1.4 million people deemed to be most at risk, with assistance for the remainder cut by around a third, Lundberg told Reuters in Maiduguri, capital of the hardest-hit state of Borno.

The U.N. says it needs $1.05 billion this year to deal with the crisis – one of three humanitarian emergencies unfolding in Africa – but has only received just over a quarter of that.

The reductions in Nigeria come a month after the WFP halved the monthly rations of more than 800,000 South Sudanese refugees in northern Uganda because of a lack of funds.

MAROONED

More than 20,000 people are thought to have died and 2.7 million have been displaced in Boko Haram’s bloody eight-year battle to establish a medieval Islamic caliphate.

Two years ago, the group controlled an area the size of Belgium but a military push by Nigeria, Chad, Cameroon and Niger has ejected the militants from cities and major towns.

However, according to the latest U.N. assessments, huge swathes of land remain no-go zones, even with military escorts. As many as 700,000 people might still be trapped in these areas, Lundberg said.

The rainy season also makes it harder to bring in emergency supplies of food and medicine as dirt roads turn to rivers of mud for up to three months.

“Some of these places will be completely locked in because of the rain,” Lundberg said. “When the rain comes, we know there will be very big challenges.”

Furthermore, aid agencies have been prevented from building up large supply centres outside cities such as Maiduguri for fear they will be attacked.

In the town of Rann near the Cameroon border, nearly 50,000 people are about to become marooned with only two weeks’ supply of food to hand, said Dana Krause, an emergency coordinator for the Swiss arm of the aid agency Medecins Sans Frontieres (MSF).

“The populations along the border are pretty much entirely dependent on external aid,” Krause said. “And by the end of July, Rann will literally be an island.”

As a last resort, a WFP spokeswoman said it was considering air drops for the most inaccessible areas.

Nigeria’s military did not respond to a request for comment.

(Editing by Susan Fenton)

Kuwait seeks to mediate Arab crisis over Qatar

An Eikon ship-tracking screen shows tanker traffic around Qatar over the last seven days in this June 6, 2017 illustration photo. REUTERS/Thomas White/Illustration

By Tom Finn and Sylvia Westall

DOHA/DUBAI (Reuters) – Kuwait’s ruler will travel to Saudi Arabia on Tuesday, hoping to heal a damaging rift between Qatar and powerful Arab states over the former’ s alleged support of Islamist militants and of political and religious rival Iran.

Emir Sheikh Sabah Al-Ahmad Al-Jaber al-Sabah will meet with Saudi Arabia’s King Salman and seek to resolve the worst infighting among the Arab world’s strongest and richest powers in decades.

Saudi Arabia, Egypt, the United Arab Emirates and Bahrain severed relations with Qatar and closed their airspace to commercial flights on Monday.

In a sign of the potential consequences for the Qatari economy, a number of banks in the region began stepping back from business dealings with Qatar. Saudi Arabia’s central bank advised banks in the kingdom not to trade with Qatari banks in Qatari riyals, sources said.

Oil prices also fell on concern that the rift would undermine efforts by OPEC to tighten production.

Qatar and the other Arab states fell out over Doha’s alleged support for Islamist militants and Shi’ite Iran — charges Qatar has called baseless.

It said, however, that it would not retaliate and hoped Kuwait would help resolve the dispute.

Foreign Minister Sheikh Mohammed bin Abdulrahman al-Thani told Qatar-based Al Jazeera TV that Qatar wants to give Kuwait’s ruler the ability to “proceed and communicate with the parties to the crisis and to try to contain the issue”.

Qatar’s leader, Sheikh Tamim bin Hamad Al-Thani, spoke by telephone overnight with his counterpart in Kuwait and, in order to allow Kuwait to mediate, decided to put off a planned speech to the nation, the foreign minister said.

Qatar has for years parlayed its enormous gas wealth and media influence into a broad influence in the region. But Gulf Arab neighbors and Egypt have long been irked by its maverick stances and support for the Muslim Brotherhood, which they regard as a political enemy.

Yemen, Libya’s eastern-based government and the Maldives – close allies of Qatar’s adversaries in the spat – also cut ties.

The United States, Russia, France, Iran and Turkey have all called for the row to be resolved through dialogue.

BANKS SHUN QATAR, FLIGHTS DIVERTED

Tightening pressure, Saudi Arabia’s aviation authority revoked the license of Qatar Airways and ordered its offices to be closed within 48 hours, a day after the kingdom, the UAE and Bahrain closed their airspace to Qatari commercial flights.

Flight tracker websites showed Qatar Airways flights taking a circuitous route mostly over Iran to avoid their neighbors.

Some Saudi Arabian and UAE commercial banks were also shunning Qatari banks, holding off on letters of credit, banking sources told Reuters on Tuesday.

With an estimated $335 billion of assets in its sovereign wealth fund and its gas exports earning billions of dollars every month, Qatar, however, has enough financial power to protect its banks.

Qatar’s stock market rebounded in early trade on Tuesday after plunging the previous day but the Qatari riyal fell against the U.S. dollar.

Kuwait’s emir, who has spent decades as a diplomat and mediator in regional disputes, hosted Sheikh Tamim last week as the crisis began brewing.

Monday’s decision forbids Saudi, UAE and Bahraini citizens from traveling to Qatar, residing in it or passing through it, instructing their citizens to leave Qatar within 14 days and Qatari nationals were given 14 days to leave those countries.

The measures are more severe than during a previous eight-month rift in 2014, when Saudi Arabia, Bahrain and the UAE withdrew their ambassadors from Doha, again alleging Qatari support for militant groups.

The United Arab Emirates said Qatar needed to carry out specific confidence-building measures and change its behavior.

“After previous experiences with the brother state, we need a frame for the future that will consolidate the security and the stability of the region,” UAE Foreign Minister Anwar Gargash wrote on Twitter overnight.

“We need to rebuild trust after broken pledges, we need a guaranteed roadmap,” he wrote.

But Qatari state TV broadcast images of Sheikh Tamim embracing the Muslim Brotherhood’s spiritual leader Sheikh Youssef al-Qaradawi — whose stay in Doha has for years irked Gulf states – as part of an annual Ramadan reception with Islamic clerics on Monday.

(Reporting by Ahmed Tolba in Cairo, Aziz El Yaakoubi, Tom Arnold, Hadeel Al Sayegh, William Maclean and Celine Aswad in Dubai, Writing by Noah Browning, Editing by Jeremy Gaunt)

Trump budget to give first look at infrastructure plan

President Donald Trump's FY2018 budget is seen during printing process at the Government Publishing Office in Washington, U.S., May 19, 2017. REUTERS/Yuri Gripas

WASHINGTON (Reuters) – President Donald Trump will propose $200 billion in infrastructure spending over 10 years in his first budget on Tuesday – funding the administration believes will boost private, state and local spending on projects, a White House official said on Friday.

The infrastructure plan, first reported by Bloomberg News, is likely to include funding to encourage state and local governments to lease assets to the private sector to generate funding for other projects.

Trump has long pledged a $1 trillion, 10-year plan to modernize U.S. roads, bridges, airports, the electrical grid and water systems, but has so far been vague on how much of the spending would come from the federal government.

Trump, who leaves on Friday for his first foreign trip, will miss the roll-out of his full budget. He was to meet with his budget director, Mick Mulvaney, on Friday before departing.

The budget will also include details about Trump’s proposals to cut foreign aid and boost military spending. It could provide clues on his plan to cut taxes.

The Washington Post reported that the budget will include funds for a program to give parents six weeks of paid leave after the birth or adoption of a child, expected to cost about $25 billion a year.

While Trump can propose programs, Congress ultimately controls spending and rarely approves White House budget plans as proposed.

Republicans control both the Senate and House of Representatives, but were lukewarm to Trump’s initial “skinny budget” plan for fiscal 2018, released in March.

(Reporting by Roberta Rampton and David Alexander; Editing by Bernadette Baum and Dan Grebler)

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)

Tillerson urges ASEAN to cut North Korea funding, minimize ties

U.S. Secretary of State Rex Tillerson (C) poses with ASEAN foreign ministers before a working lunch at the State Department in Washington, U.S., May 4, 2017. REUTERS/Yuri Gripas

By David Brunnstrom

WASHINGTON (Reuters) – U.S. Secretary of State Rex Tillerson urged Southeast Asian foreign ministers on Thursday to do more to help cut funding streams for North Korea’s nuclear and missile programs and to minimize diplomatic relations with Pyongyang.

In his first ministerial meeting with all 10 members of the Association of Southeast Asian Nations (ASEAN), Tillerson also called on nations with competing claims in the South China Sea to cease all island building and militarization while talks aimed at creating a maritime code of conduct were under way.

Patrick Murphy, U.S. deputy assistant secretary of state for East Asia, said Tillerson stressed Washington’s security and economic commitment to the region, amid doubts raised by President Donald Trump’s “America First” platform and withdrawal from the Trans Pacific Partnership (TPP) trade pact.

Tillerson called on ASEAN countries to fully implement U.N. sanctions on Pyongyang, which is working to develop a nuclear-tipped missile capable of reaching the United States, and to show a united front on the issue, Murphy said.

“We think that more can be done, not just in Southeast Asia,” he told reporters. “We are encouraging continued and further steps across all of ASEAN.”

Last week, Tillerson called on all countries to suspend or downgrade diplomatic ties with Pyongyang, saying that North Korea abuses diplomatic privileges to help fund its arms programs. Tillerson also warned that Washington would sanction foreign firms and people conducting business with North Korea if countries did not act themselves.

All ASEAN members have diplomatic relations with North Korea and five have embassies there.

Murphy said Washington was not encouraging ASEAN states to formally cut ties, but to examine the North Korean presence “where it clearly exceeds diplomatic needs.”

He said some countries were already doing this and also looking at the presence of North Korean workers, another significant revenue earner for Pyongyang.

KEEPING TENSION FROM INCREASING

Some officials of ASEAN members, speaking to reporters, acknowledged concerns about North Korea, but also cited concerns about trade relations with the United States.

Philippine acting Foreign Affairs Secretary Enrique Manalo, whose country currently chairs ASEAN, said of the U.S. call to minimize relations with Pyongyahng, “We haven’t really discussed that among the ASEAN countries, so that’s probably something we will look at.

“Our immediate concern is to try and ensure the tension on the peninsula doesn’t increase. … The last thing we would like to see is to have a conflict break out due to some miscalculation,” Manalo said.

Singapore’s foreign minister, Vivian Balakrishnan, said sanctions would have to be fully implemented, but North Korea’s presence in his country is already minimal.Asked if that could be further reduced, he said: “I won’t say never, but at this point in time that’s not the issue – we will stick with the U.N. Security Council’s resolutions.”

Balakrishnan, whose country signed the TPP, stressed the importance of U.S.-ASEAN business ties – annual trade of $100 billion supporting half a million U.S. jobs and $274 billion of U.S. investment.

“Southeast Asia is replete with economic opportunities and it’s too big to miss out on,” he said.

His remark highlighted growing concern in Asia that Trump has ditched former President Barack Obama’s economic “pivot” to the region by abandoning the TPP, something analysts say has led to more countries being pulled into China’s orbit.

Murphy said Tillerson stressed that ASEAN remained a “very important … strategic partner,” which is shown by Trump’s commitment to attend regional summits in the Philippines and Vietnam in November.

Manalo called the meeting with Tillerson and Trump’s travel plans “encouraging” signs.

“ROOM AND SPACE”

Washington wants ASEAN countries to crack down on money laundering and smuggling involving North Korea and to look at restricting legal business too.

It has been working to persuade China, North Korea’s neighbor and only major ally, to increase pressure on Pyongyang. U.S. officials are also asking China to urge more China-friendly ASEAN members, such as Laos and Cambodia, to do the same.

U.S. efforts have included a flurry of calls by Trump to the leaders of the Philippines, Thailand and Singapore.

Diplomats say U.S. pressure has caused some irritation in ASEAN, including Malaysia, which has maintained relations with Pyongyang in spite of the assassination of North Korean leader Kim Jong Un’s estranged half brother at Kuala Lumpur International airport in February/

On the issue of the South China Sea, ASEAN has adopted a cautious approach recently, with a weekend summit avoiding references to China’s building and arming of artificial islands there.

This stance coincided with moves by China and ASEAN to draft a framework to negotiate a code of conduct. Murphy said Tillerson had stressed that this process needed “room and space” through avoiding fortifying existing claims.

The United States has conducted freedom of navigation operations to challenge South China Sea claims, angering China, but not yet under Trump. Murphy said such operations would continue, but declined to say when the next might occur.

(Reporting by David Brunnstrom; Editing by Grant McCool and Leslie Adler)

Exclusive: U.S. offers to fund Mexico heroin fight as 2016 output jumps – U.S. official

FILE PHOTO: Policemen keep watch on the perimeter of a scene during a shooting with federal forces in Tepic, in Nayarit state, February 10, 2017. REUTERS/Hugo Cervantes/File Photo

By Gabriel Stargardter

MEXICO CITY (Reuters) – The United States has offered to help fund Mexico’s efforts to eradicate opium poppies, the U.S. assistant secretary for International Narcotics and Law Enforcement Affairs (INL) said on Friday, as Mexican heroin output increased again last year.

“We would be prepared to support (opium eradication efforts) should we reach a basic agreement in terms of how they would do more and better eradication in the future,” William Brownfield of INL, part of the State Department, said in an interview.

“That is on the table, but I don’t want you to conclude that it’s a done deal, because we still have to work through the details,” he said, without specifying how much money the United States could provide.

The United States is in the midst of an opiates epidemic that has killed tens of thousands of people, and with much of its heroin coming from the mountains of Mexico, the issue has become a key topic of discussion between the Mexican government and the administration of U.S. President Donald Trump.

The U.S. offer to help fund Mexico’s war on poppy cultivation stands in stark contrast to Trump’s threats to rip up the North American Free Trade Agreement and force Mexico to pay for a wall along the U.S. border, and reveals the more subtle discussions taking place between the two governments.

Mexico’s president’s office, the Interior Ministry and the Foreign Ministry did not immediately respond to requests for comment.

Speaking on condition of anonymity because the figures are not yet public, a U.S. official said separately that the area of opium poppies under cultivation in Mexico reached 32,000 hectares in 2016, equivalent to about 81 tonnes.

In 2015, Mexico had 28,000 hectares under cultivation, almost triple the area in 2012, according to U.S. data.

Support for eradicating Mexico’s opium crop could come in various forms, Brownfield said. For example, the U.S. government could provide more vehicles, or pay for helicopter flights to access the isolated, mountainous regions where poppy is grown.

“If it’s a matter of having other sorts of equipment, we could talk about support in terms of equipment,” he said.

The INL will not write Mexico a blank check but is willing to help fund specific units involved in eradication, he said.

Mexico is engaged in fraught discussions with the Trump administration over drug trafficking, trade and immigration, and Trump focused on the heroin scourge in his election campaign.

Nonetheless, Brownfield said the two governments were making substantial progress.

“Our cooperation with the Mexican government on the heroin challenge is in fact good, and it is better than it has ever been in the past,” he said.

Brownfield also confirmed a Reuters report that Mexico’s army is allowing the United States and the United Nations to observe eradication efforts.

(Reporting by Gabriel Stargardter; Editing by Lisa Shumaker)

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)