The Jim Bakker Show

Turkey’s Erdogan says U.S. courts cannot put Turkey on trial

By Tuvan Gumrukcu

ANKARA (Reuters) – Courts in the United States cannot put Turkey on trial, Turkish President Tayyip Erdogan said on Saturday, in reference to the case of a Turkish bank executive who has been charged with evading U.S. sanctions on Iran.

Already strained ties between NATO allies Ankara and Washington have deteriorated in recent weeks as Turkish-Iranian gold trader Reza Zarrab, who is cooperating with U.S. prosecutors, detailed in court a scheme to evade U.S. sanctions.

Over three days of testimony, Zarrab has implicated top Turkish politicians, including Erdogan. Zarrab said on Thursday that Erdogan personally authorized two Turkish banks to join the scheme when he was prime minister.

Ankara has cast the testimony as an attempt to undermine Turkey and its economy, and has previously said it was a “clear plot” by the network of U.S.-based Fethullah Gulen, who it alleges engineered last year’s coup attempt.

Reuters was not immediately able to reach representatives for the ministers implicated by Zarrab in the trial.

Turkey has repeatedly requested Gulen’s extradition, but U.S. officials have said the courts require sufficient evidence before they can extradite the elderly cleric, who has denied any involvement in the coup.

Erdogan, who has governed Turkey for almost 15 years, told members of his ruling AK Party in the northeastern province of Kars on Saturday that U.S. courts “can never try my country”.

Although he has not yet responded to the courtroom claims, he has dismissed the case as a politically motivated attempt to bring down the Turkish government and on Friday the state-run Anadolu news agency said Turkish prosecutors are set to seize the assets of Zarrab and his acquaintances.

Turkey has stepped up its pressure on the U.S. and on Saturday Anadolu quoted Foreign Minister Mevlut Cavusoglu as saying that Gulen’s followers had infiltrated the U.S. judiciary, Congress, and other state institutions.

The United States says its judiciary is independent of any political or other interference.

CRACKDOWN

Some 150,000 people have been sacked or suspended from their jobs over alleged links to Gulen since the attempted coup, while close to 50,000 people from the military, public and private sector have been jailed.

And in a further blow to Turkish-U.S. ties, Turkish authorities on Friday issued an arrest warrant for former U.S. Central Intelligence Agency (CIA) officer Graham Fuller over suspected links to the abortive putsch.

Rights groups and Turkey’s Western allies have voiced concerns that Erdogan is using the crackdown to muzzle dissent, but the government says the purges are necessary due to the gravity of the threat it faces.

(Reporting by Tuvan Gumrukcu; Editing by Alexander Smith)

Flynn pleads guilty to lying on Russia, cooperates with U.S. probe

By Sarah N. Lynch

WASHINGTON (Reuters) – Former national security adviser Michael Flynn pleaded guilty on Friday to lying to the FBI about his contacts with Russia, and he agreed to cooperate with prosecutors delving into the actions of President Donald Trump’s inner circle before he took office.

The dramatic turn of events also raised new questions about whether Trump’s son-in-law, Jared Kushner, had a role in those Russia contacts.

Flynn was the first member of Trump’s administration to plead guilty to a crime uncovered by special counsel Robert Mueller’s wide-ranging investigation into Russian attempts to influence the 2016 U.S. election and potential collusion by Trump aides.

Under a plea bargain deal, Flynn admitted in a Washington court that he lied when asked by FBI investigators about his conversations last December with Russia’s then-ambassador, Sergei Kislyak, just weeks before Trump took office.

Prosecutors said the two men discussed U.S. sanctions against Russia and that Flynn also asked Kislyak to help delay a U.N. vote seen as damaging to Israel. On both occasions, he appeared to be undermining the policies of outgoing President Barack Obama.

They also said a “very senior member” of Trump’s transition team had told Flynn to contact Russia and other foreign governments to try to influence them ahead of the U.N. vote.

Sources told Reuters that the “very senior” official was Kushner, a key member of Trump’s transition team and now the president’s senior adviser.

Kushner’s lawyer, Abbe Lowell, did not respond to multiple requests for comment. He has previously said Kushner has voluntarily cooperated with all relevant inquiries and would continue to do so.

Flynn’s decision to cooperate with Mueller’s team marked a major escalation in a probe that has dogged the president since he took office in January.

There was nothing in the court hearing that pointed to any evidence against Trump, and the White House said Flynn’s guilty plea implicated him alone.

“Nothing about the guilty plea or the charge implicates anyone other than Mr. Flynn,” said Ty Cobb, a White House attorney.

Flynn, a retired army lieutenant general, only served as Trump’s national security adviser for 24 days. He was forced to resign after he was found to have misled Vice President Mike Pence about his discussions with Kislyak.

But Flynn had been an enthusiastic supporter of Trump’s election campaign and the president continued to praise him even after he left the administration, saying Flynn had been treated “very, very unfairly” by the news media.

A small group of protesters yelled “Lock him up!” as Flynn left the courthouse on Friday, echoing the “Lock her up!” chant that Flynn himself led against Trump’s Democratic rival, Hillary Clinton, in vitriolic appearances on the campaign trail.

SANCTIONS

Mueller’s team is also looking at whether members of Trump’s campaign may have sought to ease sanctions on Russia in return for financial gain or because Russian officials held some leverage over them, people familiar with the probe say.

Prosecutors said Flynn and Kislyak last December discussed economic sanctions that Obama’s administration had just imposed on Moscow for allegedly interfering in the election.

Flynn asked Kislyak to refrain from escalating a diplomatic dispute with Washington over the sanctions, and later falsely told FBI officials that he did not make that request, court documents showed.

Prosecutors said Flynn had earlier consulted with a senior member of Trump’s presidential transition team about what to communicate to the Russian ambassador.

“Flynn called the Russian ambassador and requested that Russia not escalate the situation and only respond to the U.S. sanctions in a reciprocal manner,” the prosecutors said in court documents, adding that Flynn then called the Trump official again to recount the conversation with Kislyak.

They did not name the senior official in the Trump team but U.S. media reports identified former adviser K.T. McFarland as the person. Reuters was unable to verify the reports.

On Dec. 28, 2016, the day before prosecutors say the call between the Trump aides took place, Trump had publicly played down the need to sanction Russia for allegedly hacking U.S. Democratic operatives.

“I think we ought to get on with our lives. I think that computers have complicated lives very greatly,” Trump told reporters at his Mar-a-Lago Florida resort.

TESTIMONY

Ryan Goodman, a professor at New York University Law School, said Flynn’s plea deal shows Mueller is scrutinizing the truthfulness of testimony given to his investigators. Kushner is potentially liable for making false statements if his testimony is contradicted by Flynn, Goodman said.

Earlier on Friday, ABC News cited a Flynn confidant as saying Flynn was ready to testify that Trump directed him to make contact with Russians before he became president, initially as a way to work together to fight the Islamic State group in Syria.

Reuters could not immediately verify the ABC News report.

U.S. stocks, the dollar and Treasury yields fell sharply after the ABC report, although they partially rebounded on optimism that a Republican bill to cut taxes will be approved in the U.S. Senate.

If Trump directed Flynn to contact Russian officials, that might not necessarily amount to a crime. It would be a crime if it were proven that Trump directed Flynn to lie to the FBI.

Moscow has denied what U.S. intelligence agencies say was meddling in the election campaign to try to sway the vote in Trump’s favor. Trump has called Mueller’s probe a witch hunt.

In May, the president fired FBI Director James Comey, who later accused Trump of trying to hinder his investigation into the Russia allegations. Comey also said he believed Trump had asked him to drop the FBI’s probe into Flynn.

Comey on Friday tweeted a cryptic message about justice.

“But let justice roll down like waters and righteousness like an ever-flowing stream, ‘Amos 5:24’,” he wrote, quoting the Biblical book of Amos.

Paul Manafort, who ran Trump’s presidential campaign for several months last year, was charged in October with conspiring to launder money, conspiracy against the United States and failing to register as a foreign agent of Ukraine’s former pro-Russian government.

Manafort, who did not join Trump’s administration, and a business associate who was charged with him both pleaded not guilty.

(Additional reporting by Susan Heavey, Tim Ahmann, John Walcott, Mark Hosenball and Nathan Layne in Washington and Jan Wolfe in New York; Writing by Alistair Bell and Yara Bayoumy; Editing by Frances Kerry and Mary Milliken)

Ex-U.S. NSA employee pleads guilty to taking classified documents

By Dustin Volz and John Walcott

WASHINGTON (Reuters) – A former U.S. National Security Agency employee pleaded guilty on Friday to illegally taking classified information outside the spy agency that an intelligence official said was later stolen from his home computer by Russian hackers.

Nghia Hoang Pho, who worked in the NSA’s elite hacking unit, retained U.S. government documents containing top-secret national defense information between 2010 and March 2015, the Justice Department said.

Pho, a 67-year-old U.S. citizen born in Vietnam, faces up to 10 years in prison. He is not being held by authorities as he awaits his sentencing, which is scheduled for April 6, 2018, in U.S. District Court in Baltimore.

A U.S. intelligence official, speaking on the condition of anonymity, said Pho was the same NSA employee who had been identified in media reports for using Kaspersky Lab antivirus software on his home computer. Some U.S. officials have said software from the Moscow-based company allowed Russian intelligence agencies to pilfer sensitive secrets from the United States through Pho’s computer.

The Department of Homeland Security in September ordered federal agencies to start removing Kaspersky software from their computers. U.S. officials have said the firm either has ties to Russian intelligence or is forced to share information held on its servers with Russian officials. Kaspersky has repeatedly denied the allegations but acknowledged its software in 2014 took NSA code for a hacking tool from a customer’s computer before its chief executive, Eugene Kaspersky, ordered the code destroyed.

The court documents do not appear to make mention of Russian intelligence agencies or Kaspersky Lab. The connection was first reported by the New York Times.

The intelligence official declined to comment on whether Pho knew the software he was using at home was vulnerable.

Pho is at least the third NSA employee or contractor to be charged within the past two years on counts of improperly taking classified information from the agency, breaches that have prompted criticism of the secretive NSA.

A federal grand jury indicted former NSA contractor Harold Martin in February on charges alleging he spent up to 20 years stealing up to 50 terabytes of highly sensitive government material from the U.S. intelligence community, which were hoarded at his home.

In June another NSA contractor, Reality Winner, 25, was charged with leaking classified material about Russian interference in the 2016 U.S. presidential election to a news outlet. She pleaded not guilty.

And in 2013, former contractor Edward Snowden pilfered secrets about NSA’s surveillance programs and shared them with journalists. He now lives in Moscow.

Pho, of Ellicott City, Maryland, took both physical and digital documents that contained “highly classified information of the United States,” including information labeled as “top secret,” according to court records unsealed Friday. He was aware the documents contained sensitive information and kept them at his residence in Maryland, the records said.

Asked for comment, Pho’s attorney, Robert Bonsib, said, “Any conversations regarding this case will be made in the courtroom during the sentencing.” He declined to comment further.

Officials at the NSA and other U.S. intelligence agencies did not immediately respond to requests for comment.

The NSA, whose main mission is gathering and analyzing foreign communications for potential security threats, is based at Fort Meade, Maryland.

(Reporting by Dustin Volz and John Walcott, additional reporting by Mark Hosenball; Editing by Jonathan Oatis and Tom Brown)

U.S. firms push Washington to restart nuclear pact talks with Riyadh: sources

By Reem Shamseddine and Sylvia Westall

RIYADH/DUBAI (Reuters) – U.S. firms attracted by Saudi Arabia’s plans to build nuclear reactors are pushing Washington to restart talks with Riyadh on an agreement to help the kingdom develop atomic energy, three industry sources said.

Saudi Arabia has welcomed the lobbying, they said, though it is likely to worry regional rival Iran at a time when tensions are already high in the Middle East.

One of the sources also said Riyadh had told Washington it does not want to forfeit the possibility of one day enriching uranium – a process that can have military uses – though this is a standard condition of U.S. civil nuclear cooperation pacts.

“They want to secure enrichment if down the line they want to do it,” the source, who is in contact with Saudi and U.S. officials, said before U.S. Energy Secretary Rick Perry holds talks in Riyadh early next week.

Another of the industry sources said Saudi Arabia and the United States had already held initial talks about a nuclear cooperation pact.

U.S. officials and Saudi officials responsible for nuclear energy issues declined to comment for this article. The sources did not identify the U.S. firms involved in the lobbying.

Under Article 123 of the U.S. Atomic Energy Act, a peaceful cooperation agreement is required for the transfer of nuclear materials, technology and equipment.

In previous talks, Saudi Arabia has refused to sign up to any agreement with the United States that would deprive the kingdom of the possibility of one day enriching uranium.

Saudi Arabia, the world’s top oil producer, says it wants nuclear power solely for peaceful uses – to produce electricity at home so that it can export more crude. It has not yet acquired nuclear power or enrichment technology.

Riyadh sent a request for information to nuclear reactor suppliers in October in a first step towards opening a multi-billion-dollar tender for two nuclear power reactors, and plans to award the first construction contract in 2018.

Reuters has reported that Westinghouse is in talks with other U.S.-based companies to form a consortium for the bid. A downturn in the U.S. nuclear industry makes business abroad increasingly valuable for American firms.

Reactors need uranium enriched to around 5 percent purity but the same technology in this process can also be used to enrich the heavy metal to a higher, weapons-grade level. This has been at the heart of Western and regional concerns over the nuclear work of Iran, which enriches uranium domestically.

Riyadh’s main reason to leave the door open to enrichment in the future may be political – to ensure the Sunni Muslim kingdom has the same possibility of enriching uranium as Shi’ite Muslim Iran, industry sources and analysts say.

POTENTIAL PROBLEM FOR WASHINGTON

Saudi Arabia’s position poses a potential problem for the United States, which has strengthened ties with the kingdom under President Donald Trump.

Washington usually requires a country to sign a nuclear cooperation pact – known as a 123 agreement – that forfeits steps in fuel production with potential bomb-making uses.

“Doing less than this would undermine U.S. credibility and risk the increased spread of nuclear weapons capabilities to Saudi Arabia and the region,” said David Albright, a former U.N. weapons inspector and president of the Washington-based Institute for Science and International Security (ISIS).

It is not clear whether Riyadh will raise the issue during Perry’s visit, which one of the industry sources said could include discussion of nuclear export controls.

Under a nuclear deal Iran signed in 2015 with world powers – but which Trump has said he might pull the United States out of – Tehran can enrich uranium to around the level needed for commercial power-generation.

It would be “a huge change of policy” for Washington to allow Saudi Arabia the right to enrich uranium, said Mark Fitzpatrick, executive director of the Americas office at the International Institute for Strategic Studies think tank.

“Applying the ‘golden standard’ of not allowing enrichment or preprocessing (of spent fuel) has held up a 123 agreement with Jordan for many years, and has been a key issue in U.S. nuclear cooperation with South Korea,” said Fitzpatrick, a nuclear policy expert.

The United States is likely to aim for restrictions, non-proliferation analysts say.

These could be based on those included in the 123 agreement Washington signed in 2009 with the United Arab Emirates, which is set to start up its first South Korean-built reactor in 2018 and has ruled out enrichment and reprocessing.

“Perhaps Saudi Arabia is testing the Trump administration and seeing if the administration would be amenable to fewer restrictions in a 123 agreement,” ISIS’s Albright said.

REFORM PLAN

Saudi Arabia’s nuclear plans have gained momentum as part of a reform plan led by Crown Prince Mohammed bin Salman to reduce the economy’s dependence on oil.

Riyadh wants eventually to install up to 17.6 gigawatts (GW) of atomic capacity by 2032 – or up to 17 reactors. This is a promising prospect for the struggling global nuclear industry and the United States is expected to face competition from South Korea, Russia, France and China for the initial tender.

Hashim bin Abdullah Yamani, head of the Saudi government agency tasked with the nuclear plans, has said the kingdom wants to tap its own uranium resources for “self-sufficiency in producing nuclear fuel” and that this is economically viable.

As a nuclear conference in October, Saudi officials declined to comment when asked to expand on the topic.

In 2015, before the Iran deal was signed, Prince Turki al-Faisal, a senior Saudi royal and former intelligence chief, said Riyadh would want the option to enrich uranium if Tehran had it.

In October, Maher al-Odan, the chief atomic energy officer of KACARE, said Saudi Arabia had around 60,000 tonnes of uranium based on initial studies and that the kingdom wanted to start extracting it to boost the economy.

Asked what would happen to the uranium after that, he replied: “This is a government decision.”

(Additional reporting by Stephen Kalin in Riyadh and Shadia Nasralla in Vienna, Editing by Timothy Heritage)

Seoul says North Korea puts Washington in range, but needs to prove critical technology

By Christine Kim and Dmitry Solovyov

SEOUL/MOSCOW (Reuters) – North Korea’s latest missile test puts Washington within range, but Pyongyang still needs to prove it has mastered critical missile technology, such as re-entry, terminal stage guidance and warhead activation, South Korea said on Friday.

South Korea’s Ministry of Defence said the Hwasong-15 missile tested on Wednesday was a new type of intercontinental ballistic missile (ICBM) which can fly over 13,000 km (8,080 miles), placing Washington within target range.

The test prompted a warning from the United States that North Korea’s leadership would be “utterly destroyed” if war were to break out, a statement that drew sharp criticism from Russia.

On Friday, Russian Foreign Minister Sergei Lavrov termed the threat from U.S. Ambassador to the United Nations Nikki Haley “a bloodthirsty tirade” and said military action against Pyongyang would be a big mistake, Russian news agencies reported.

“We will do everything to ensure that (the use of force) doesn’t happen so that the problem is decided only using peaceful and political-diplomatic means,” Lavrov said.

Separately, Russian lawmakers just back from a visit to Pyongyang said North Korea was not prepared to disarm, and while it did not want nuclear war it was morally ready for it, Russia’s RIA news agency reported.

Pyongyang has said its Wednesday missile test was a “breakthrough” and leader Kim Jong Un said the country had “finally realized the great historic cause of completing the state nuclear force.”

After North Korea released video footage and photographs of Hwasong-15, U.S. based experts said it appeared North Korea was indeed capable of delivering a nuclear weapon anywhere in the United States and could only be two or three tests away from being combat ready.

Yeo Suk-joo, South Korea’s deputy minister of defense policy, told the South Korean parliament that North Korea still needed to prove some technologies, like re-entry, terminal stage guidance and warhead activation.

Even so, South Korea’s Unification Ministry said North Korea was likely to pause its missile tests for a number of reasons, including the northern hemisphere winter season.

“For now if there are no sudden changes in situation or external factors, we feel there is a high chance North Korea will refrain from engaging in provocations for a while,” said Lee Yoo-jin, the ministry’s deputy spokeswoman.

North Korea is known to test fewer missiles in the fourth quarter of the year as troops are called to help with harvests, while the cold temperatures are a strain on the country’s fuel supplies.

This week’s missile launch was the first in 75 days.

South Korea Defence Minister Song Young-moo told parliament he expected North Korean leader Kim Jong Un to use his New Year’s Address to declare that North Korea had completed its weapons program.

South Korean and U.S. officials say the Hwasong 15 is the most advanced missile North Korea has ever tested.

Yeo told lawmakers the first stage engine of the missile featured a clustering of two engines from a smaller Hwasong-14 ICBM test-launched in July.

He said the Hwasong-15 is two meters (six feet) longer than the Hwasong-14. He said the second-stage engine requires further analysis.

Yeo said U.S. strategic assets would continue to be rotated on and near the Korean peninsula until the Pyeongchang Winter Olympics in South Korea next February in a bid to deter further North Korean “provocations.”

U.S. President Donald Trump has responded to the latest North Korean test with a fresh round of insults directed against Kim Jong Un, who he called “Little Rocket Man” and a “sick puppy.”

Trump has vowed to respond with tougher sanctions, but his administration has warned that all options are on the table in dealing with North Korea, including military ones.

North Korea has stuck to its effort to develop a nuclear-tipped missile capable of hitting the United States in spite of years of international sanctions and condemnation.

(Reporting by Christine Kim; additional reporting by Dmitry Solovyov in Moscow and David Brunnstrom in Washington; Editing by Michael Perry and Andrew Hay)

Magnitude 4.1 quake strikes Delaware, equals estimated state record

(Reuters) – A magnitude 4.1 earthquake struck Delaware on Thursday in a rare seismological occurrence for the U.S. Northeast, officials said, with the temblor’s strength equaling the estimated magnitude of an 1871 quake that was believed to be the largest ever in the state.

The quake, previously reported at magnitude 5.1 and then at 4.4, was centered in the Bombay Hook National Wildlife Refuge, according to a statement from the Delaware Emergency Management Agency. It was less than 10 miles (17 km) from the city of Dover and less than a mile (0.8 km) from Donas Landing.

There were no reports of injuries or damage, officials said.

In 1871, a quake believed to have been of magnitude 4.1 struck in Delaware, according to the website for the Delaware Geological Survey, a state agency.

The 1871 quake had been the largest on record for Delaware, according to the survey, but its strength has only been estimated.

The largest quake ever recorded in Delaware was a magnitude 3.8 temblor in 1973, according to the Delaware Geological Survey.

Earthquakes in Delaware do not occur on the edge of a tectonic plate, as is more common in places such as California, where fault lines between plates generate earthquakes. Generations of California residents have been bracing for the so-called “Big One” along the San Andreas Fault.

Instead, the Delaware temblor occurred far from the edge of a plate, said Thomas Pratt, a research geophysicist at the U.S. Geological Survey who is based in Virginia.

“There’s a lot of speculation, but we don’t have a good answer for why these earthquakes are occurring in the middle of the plates,” Pratt said.

The latest quake was downgraded to a magnitude 4.1 after data came in from several monitoring stations, U.S. Geological Survey geophysicist Rafael Abreu said by telephone.

It was felt in Philadelphia in the neighboring state of Pennsylvania, some 53 miles (85 km) from the epicenter.

The quake was shallow, only 5 miles (8 km) deep, which would have amplified its effect, and some people reported feeling light shaking in areas around New York City and Baltimore, according to the USGS website.

Many social media users also confirmed feeling the temblor and #earthquake had quickly risen to the top of trending topics on Twitter with more than 11,000 tweets mentioning the hashtag.

(Reporting by Sandra Maler in Washington and Alex Dobuzinskis in Los Angeles; Editing by Sandra Maler and Dan Grebler)

Senate grapples with tax cut plan’s impact on federal deficit

By David Morgan and Amanda Becker

WASHINGTON (Reuters) – U.S. Senate Republicans will grapple on Friday with the possibility of adding a tax increase to sweeping legislation meant to cut taxes on businesses and individuals, aiming to win support from fiscal conservatives worried about the bill’s impact on the federal deficit.

With a mandatory 20 hours of Senate debate nearing expiration, the Republican lawmakers, who control the chamber, could move to a final vote late in the day after a procedural vote starting at 11 a.m. EST (1600 GMT) and a potentially chaotic “vote-a-rama” on tax bill amendments offered by both Republicans and Democrats.

Republicans were still wrangling behind the scenes over how to raise $350 billion or more in taxes over 10 years to prevent their legislation from ballooning the federal deficit if the proposed cuts fail to generate the expected economic growth.

Senate Republican leader Mitch McConnell and others were also working on deals to win support from party members who want better tax breaks for non-corporate pass-through businesses, a bigger child tax credit for families, and a $10,000 deduction for state and local property taxes.

Despite the hurdles, rank-and-file Republicans were still optimistic that they could approve the bill this week and agree this month to final legislation with the House of Representatives, which their party also controls.

“This is the big enchilada,” said Senator Johnny Isakson of Georgia. “We’ve still got a chance to do something good, and I’m going to try and do it.”

Since taking office in January, President Donald Trump and the Republican-led Congress have passed no major legislation. Their bill would be the biggest overhaul of the U.S. tax system since the 1980s.

Success is crucial to Republican political prospects in the November 2018 elections, when the party will fight to keep control of the Senate and the House of Representatives.

But the effort stumbled on Thursday when Republicans acknowledged that Senate rules would not permit them to add a mechanism to trigger tax increases in coming years if the bill fails to boost the economy enough to generate sufficient revenues to pay for tax cuts.

Senator Bob Corker and other Republicans concerned about the deficit impact had demanded the trigger in exchange for their support. On Thursday, the nonpartisan Joint Committee on Taxation released a report saying the legislation would add $1 trillion to the deficit over the next 10 years, even with tax-driven economic growth projections factored in.

Republicans are now examining options that could raise taxes at a particular point over the next decade.

“We have an alternative, frankly a tax increase we don’t want to do, to try and address Senator Corker’s concerns,” said Senate Majority Whip John Cornyn, the chamber’s No. 2 Republican.

As drafted, the Senate bill would cut the U.S. corporate tax rate to 20 percent from 35 percent after a one-year delay and reduce the tax burden on businesses and individuals, while ending many tax breaks.

Analysts said lawmakers could scale back tax cuts for corporations and top individual earners.

Asked if lawmakers would have to accept smaller tax cuts, Senate Finance Committee Chairman Orrin Hatch said: “We’ll have to see.”

Early on Friday morning, Trump praised congressional Republicans’ work and blamed Democrats for trying to derail the bill, tweeting: “The Bill is getting better and better.”

Democrats have been united in their opposition to the bill, calling it a giveaway to the wealthy and corporations.

(Reporting by David Morgan and Amanda Becker; Additional reporting by Susan Heavey; Editing by Kevin Drawbaugh and Lisa Von Ahn)

Lawsuit seeks to block Illinois abortion coverage expansion

By Chris Kenning

CHICAGO (Reuters) – Abortion opponents in Illinois filed a lawsuit on Thursday to block a recently approved law expanding state-funded coverage of abortions for low-income Medicaid recipients and state workers.

The lawsuit was filed in Sangamon County Circuit Court on behalf of taxpayers by the conservative Thomas More Society, along with some state lawmakers and anti-abortion groups.

It asked a judge to block state funding for the law, arguing that the state failed to set aside up to $30 million in the budget to pay for abortions. The lawsuit also argued that the law could not take effect until June 2018, instead of January, because of when it was approved.

“The people of Illinois are opposed to taxpayer funded abortion, especially with the terrible financial state that Illinois is in,” Peter Breen, a Republican state lawmaker and an attorney for the Thomas More Society, said on Thursday.

He argued that the state would have to pay for up to 30,000 abortions a year.

Illinois Republican Governor Bruce Rauner signed the bill in September, upsetting many conservatives.

“I do not think it’s fair to deny poor women the choice that wealthy women have,” Rauner said at the time.

The American Civil Liberties Union of Illinois supported the law, saying it would keep women from being denied abortion coverage just because they were on Medicaid or worked for the state. Medicaid is a government healthcare program for the poor and disabled.

Ed Yohnka, the ACLU’s director of public policy and communications, on Thursday rejected the lawsuit’s contention that lawmakers needed to designate specific funds.

“That’s like saying the General Assembly has to appropriate money for knee replacements,” he said.

About 15 other states allow Medicaid to pay for abortion, including some required by courts, according to the Kaiser Family Foundation. Illinois was the first state in decades to voluntarily lift a restriction on such services.

Illinois’ Medicaid program has previously covered abortions in cases of rape, incest and when a mother’s life or health is threatened.

The expansion would enable poor women to obtain elective abortions. The law would also allow state employees to have the procedures covered under state health insurance.

The law’s passage by the Democratic-controlled Illinois legislature came after some other U.S. states, which are controlled by Republicans, have sought in recent years to tighten regulations on abortion clinics and forced closures in Texas and Kentucky.

Trump weighs recognizing Jerusalem as Israel’s capital: officials

By Steve Holland and Matt Spetalnick

WASHINGTON (Reuters) – President Donald Trump is considering recognition of Jerusalem as Israel’s capital, a move that could upend decades of American policy and ratchet up Middle East tensions, but is expected to again delay his campaign promise to move the U.S. embassy there, U.S. officials said on Thursday.

After months of intense White House deliberations, Trump is likely to make an announcement next week that seeks to strike a balance between domestic political demands and geopolitical pressures over an issue at the heart of the Israeli-Palestinian conflict – the status of Jerusalem, home to sites holy to the Jewish, Muslim and Christian religions.

Trump is weighing a plan under which he would declare Jerusalem the capital of Israel, the officials said, deviating from White House predecessors who have insisted that it is a matter that must be decided in peace negotiations.

The Palestinians want East Jerusalem as the capital of their future state, and the international community does not recognize Israel’s claim on the entire city.

Such a move by Trump, which could be carried out through a presidential statement or speech, would anger the Palestinians as well as the broader Arab World and likely undermine the Trump administration’s fledgling effort to restart long-stalled Israeli-Palestinian peace talks.

It could, however, help satisfy the pro-Israel, right-wing base that helped him win the presidency and also please the Israeli government, a close U.S. ally.

Trump is likely to continue his predecessors’ policy of signing a six-month waiver overriding a 1995 law requiring that the U.S. Embassy be moved from Tel Aviv to Jerusalem, the officials said.

But among the options under consideration is for Trump to order his aides to develop a longer-term plan for the embassy’s relocation to make clear his intent to do so eventually, according to one of the officials.

However, the U.S. officials, who spoke on condition of anonymity, cautioned that the plan has yet to be finalized and Trump could still alter parts of it.

“No decision has been made on that matter yet,” State Department spokeswoman Heather Nauert said on Thursday.

CAMPAIGN PLEDGE

Trump pledged on the presidential campaign trail last year that he would move the embassy from Tel Aviv to Jerusalem.

But Trump in June waived the requirement, saying he wanted to “maximize the chances” for a peace push led by his son-in-law and senior adviser, Jared Kushner.

Those efforts have made little if any progress.

The status of Jerusalem is one of the major stumbling blocks in achieving peace between Israel and the Palestinians.

Israel captured Arab East Jerusalem during the 1967 Middle East war and later annexed it, a move not recognized internationally.

Palestinian leaders, Arab governments and Western allies have long urged Trump not to proceed with the embassy relocation, which would go against decades of U.S. policy by granting de facto U.S. recognition of Israel’s claim to all of Jerusalem as its capital.

However, if Trump decides to declare Jerusalem as Israel’s capital, even without ordering an embassy move, it would be certain to spark an international uproar.

A key question would be whether such a declaration would be enshrined as a formal presidential action or simply be a symbolic statement by Trump.

Some of Trump’s top aides have privately pushed for him to keep his campaign promise to satisfy a range of supporters, including evangelical Christians, while others have warned of the potential damage to U.S. relations with Muslim countries.

(Reporting by Steve Holland; editing by Jonathan Oatis, G Crosse)

Hurricane Harvey makes Houston reassess growth-friendly policies

By Andy Sullivan

HOUSTON (Reuters) – Melinda and Joel Loshak raised two children in a stylish ranch house in Houston’s upscale Meyerland neighborhood and planned to retire there. Now they are hoping the government will knock it down.

After Hurricane Harvey pushed oily floodwaters into their house in August, the Loshaks asked local officials to buy them out, joining more than 3,000 other Houston-area homeowners who grew weary of ripping out waterlogged drywall and ruined refrigerators after three devastating floods in three years.

“I call the house my albatross. It just follows us; it’s hanging from our necks, pulling us down,” said Melinda Loshak, 61.

The buyout program is just one way Houston hopes to better protect itself against future floods. But even as the city prepares to demolish thousands of homes in low-lying areas, developers are putting up hundreds more.

Experts and some elected officials say the region needs to take a hard look at the growth-friendly policies that have increased the risk of flooding even as they have helped keep housing affordable in the United States’ fourth-largest city.

“There’s no indication that we’re going to do anything philosophically different,” said Jim Blackburn, an environmental law professor at Rice University. “With a few modifications, it’s business as usual.”

As Houston rebuilds from the most expensive hurricane in U.S. history, local officials plan to dredge waterways, build new reservoirs and a coastal barrier to protect against storms that experts say are growing in intensity due to a warming climate. They have asked Washington for $61 billion to pay for it all.

Some local leaders, such as Harris County Judge Ed Emmett, have called for development rules to be tightened and for new taxes to fund flood defenses.

Houston Mayor Sylvester Turner recently said his government would take a closer look at development projects.

But that has not stopped one developer from moving ahead with plans to build 900 houses on a former golf course in a flood zone. Local activists say it is a prime example of runaway development that will make flooding worse.

“That water now doesn’t have a place to go, and it has to go somewhere else – more likely into older neighborhoods that may or may not have flooded prior to this,” said Ed Browne, chairman of a grassroots group called Citizens Against Flooding. “It’s incredibly unfair to allow this to happen.”

Developer Meritage Homes says the project includes bigger retention ponds than are required by law to stop stormwater spilling into the surrounding community. The development “will have zero negative impact on downstream flooding,” the company said in a statement.

Since 2010, more than 7,000 homes have been built in flood zones in Harris County, which includes Houston, according to a ProPublica/Texas Tribune investigation.

Some developers say they are willing to consider tougher guidelines – up to a point.

“Any time you have a big storm like this, it’s not a bad idea to look and make sure you have the right answers,” said Augie Campbell, president of the West Houston Association, a local business group. “It’s just important that you don’t rush to judgment too quickly.”

In the meantime, Harris County officials have allocated $20 million to buy 200 homes that flooded during Harvey and are asking the federal government for another $800 million, which would let them purchase another 5,000 houses.

Some 3,636 residents have applied for the buyouts, Harris County Flood Control District spokeswoman Karen Hastings said.

The money, if it wins approval from Congress, is not likely to come through for months.

Meanwhile, the Loshaks have torn out the waterlogged kitchen cabinets they installed after their house flooded for the first time, back in 2015. They have plugged in dehumidifiers and fans to fend off mold. They do not want to have to rebuild again.

“I just would like it to be gone, because it’s so stressful and depressing to see the house and see the neighborhood and know that it’s just going to happen over and over again,” Melinda Loshak said.

(Reporting by Andy Sullivan; Editing by Daniel Wallis and Cynthia Osterman)

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