Washington refocuses on tax; anti-tax activist sees bill in September

Grover Norquist, president of Americans for Tax Reform, speaks before the dedication of a statue of the late Senator Barry Goldwater (R-AZ) in Statuary Hall on Capitol Hill in Washington February 11, 2015. REUTERS/Joshua Roberts

By Ginger Gibson and David Morgan

WASHINGTON (Reuters) – Congressional Republicans are ramping up discussions on overhauling the U.S. tax code that a prominent Republican anti-tax advocate said on Wednesday will produce a bill by September with a hefty corporate tax cut.

Grover Norquist, head of the anti-tax Americans for Tax Reform and a lobbyist close to Republican leaders, said a “Big Six” group of Republican tax decision-makers was targeting the end of this month for producing a basic framework for a bill to be introduced in September.

“The House, the White House and the Senate have been meeting for a couple months. They’ll have a package in September,” said Norquist, a conservative tax and small-government activist who has met with Big Six members.

The group met on Wednesday evening and two members who emerged 45 minutes later said they were united on tax principles but offered no comment on whether they had agreed to a framework.

“We’re all on one page, on one unified page,” White House economic adviser Gary Cohn said.

House of Representatives Ways and Means Committee Chairman Kevin Brady also told reporters there was unity and to expect a statement in coming days.

Central to the discussion is the 35 percent corporate income tax rate, how much it can be cut and whether a cut can be made permanent. The White House wants to slash the rate to 15 percent for seven years, while congressional Republicans are trying to settle on a permanent rate that does not increase the deficit.

President Donald Trump and his representatives on the Big Six – Cohn and Treasury Secretary Steven Mnuchin – are “really excited about the 15 percent rate” for corporations, Norquist said.

The congressional Big Six members are Brady, Senate Majority Leader Mitch McConnell, House Speaker Paul Ryan and Senate Finance Committee Chairman Orrin Hatch.

Norquist has played a key role in tax negotiations in Washington for years.

Trump is insisting on lowering the tax rate for pass-through businesses, now taxed at the top individual tax code rate, to 15 percent, Norquist said.

The Big Six agree that Trump’s 15 percent corporate rate cannot be achieved on a permanent basis without adding to the federal deficit, administration officials said.

Such a steep tax rate cut would mean a revenue loss of more than $2 trillion over a decade, independent analysts say.

To solve the deficit issue, the White House is open to making the 15 percent rate temporary, with an expiration in seven years, Norquist said. That would conflict with Republicans in Congress who want a permanent tax overhaul, but it would ensure rates would not have to be renewed during Trump’s presidency.

Mnuchin said on Wednesday morning that the administration would be “sensitive to increasing the debt.”

“We are very close to releasing a detailed plan and I can assure you that we believe that detailed plan will be responsible on the impact on the economy and the cost to the debt,” he said.

Under current law, companies adhere to complex depreciation schedules for how long it takes for equipment to wear out and lose value.

Business groups have called for “100 percent expensing,” a policy that would let companies write off the entire price of equipment in the year of purchase. Former President Barack Obama pushed for temporary 100 percent expensing as a economic stimulus to help reverse the recession when he took office.

The White House is considering a three-year window to allow 100 percent expensing, Norquist said. After the three years, the rate would return to 50 percent, which is the current law.

(Reporting by Ginger Gibson; Editing by Dan Grebler and Bill Trott)

Trump warns Iran over detained Americans: White House

U.S. President Donald Trump reacts as he leaves a Made in America roundtable meeting in the East Room of the White House in Washington, U.S. July 19, 2017. REUTERS/Carlos Barria

WASHINGTON (Reuters) – U.S. President Donald Trump warned that Iran would face “new and serious consequences” unless all unjustly detained American citizens were released and returned, the White House said in a statement on Friday.

Trump urged Iran to return Robert Levinson, an American former law enforcement officer who disappeared more than 10 years ago in Iran, and demanded that Tehran release businessman Siamak Namazi and his father, Baquer.

The statement capped a week of rhetoric against Tehran. On Tuesday, Washington slapped new economic sanctions against Iran over its ballistic missile program and said Tehran’s “malign activities” in the Middle East undercut any “positive contributions” coming from the 2015 nuclear accord.

Those measures signaled that the Trump administration was seeking to put more pressure on Iran while keeping in place an agreement between Tehran and six world powers to curb its nuclear program in return for lifting international oil and financial sanctions.

Friday’s statement said Trump and his administration were “redoubling efforts” to bring back all Americans unjustly detained abroad.

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

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

The IRGC arrested the father, a former Iranian provincial governor and former UNICEF official in February last year, family members said.

Levinson, a former agent for the Federal Bureau of Investigation and for the Drug Enforcement Administration, disappeared in Iran in 2007 and the U.S. government has a $5 million reward for information leading to his safe return.

An Iranian court sentenced Xiyue Wang, a Chinese-born U.S. citizen graduate student from Princeton University, to 10 years in jail on spying charges, Iran’s judiciary spokesman said on Sunday.

“Iran is responsible for the care and wellbeing of every United States citizen in its custody,” the White House said in the statement.

Separately, Secretary of State Rex Tillerson met with Oman’s foreign affairs minister, Yusuf bin Alawi on Friday.

Washington has in the past sought Oman’s mediation to help in securing the release of detained Americans abroad. Last year American prisoners held captive by Yemen Houthi rebels were released after Omani mediation.

Oman also paid bail that ultimately helped in the release of three American hikers in 2010 and 2011.

(Reporting by Yara Bayoumy; Editing by James Dalgleish, Toni Reinhold)

Sean Spicer resigns as Trump seeks to repair public image

FILE PHOTO: White House spokesman Sean Spicer holds a press briefing at the White House in Washington, U.S., May 8, 2017. REUTERS/Kevin Lamarque/File Photo

WASHINGTON (Reuters) – White House spokesman Sean Spicer resigned on Friday, ending a brief and turbulent tenure that made him a household name, amid further upheaval within President Donald Trump’s inner circle.

A White House official confirmed the departure of Spicer, 45, and said Trump had named Wall Street financier Anthony Scaramucci as his new, top communications official.

While not a surprise, Spicer’s departure was abrupt and reflected heightened turmoil within Trump’s legal and communication teams amid a widening investigation into possible ties between Trump’s 2016 campaign and the Kremlin.

Parodied memorably by Melissa McCarthy on the “Saturday Night Live” sketch comedy show for his combative encounters with the White House press corps, Spicer became one of the Trump administration’s most recognized figures.

He invited controversy from the beginning, attacking the news media in his debut appearance as press secretary for reporting what he called inaccurate crowd numbers at Trump’s inauguration.

“This was the largest audience to ever witness an inauguration, period, both in person and around the globe,” he said, an assertion that quickly drew scorn.

While the White House official gave no reason for Spicer’s resignation, the New York Times reported that he had quit over Scaramucci’s appointment. Spicer had been serving as both press secretary and communications director, but with a lower profile recently.

Spicer was targeted by critics for what they said were false or misleading statements. In recent weeks, he has less frequently taken the lectern in the White House press room.

From the start, Spicer and other Trump aides sought to shake up the status quo in White House dealings with the media, including cutting back daily televised news briefings and replacing them with audio briefings only.

When Trump tapped Spicer for the job of press secretary, he was spokesman for the Republican National Committee.

Separately, Special Counsel Robert Mueller, who is investigating the possible Trump-Russia ties, has asked White House officials to preserve any records of a meeting last year between the president’s eldest son, Donald Trump Jr., and a Russian lawyer, a source with knowledge of the request said on Friday.

The White House said deputy press secretary Sarah Sanders will give an on-camera briefing on Friday afternoon.

(Writing by Kevin Drawbaugh and Susan Heavey; Editing by Kieran Murray and Jonathan Oatis)

White House deregulation push clears out hundreds of proposed rules

U.S. President Donald trump speaks during a lunch meeting with Senate Republicans to discuss healthcare at the White House in Washington, U.S., July 19, 2017. REUTERS/Kevin Lamarque

By David Shepardson and Valerie Volcovici

WASHINGTON (Reuters) – The White House said Thursday it had withdrawn or removed from active consideration more than 800 proposed regulations that were never finalized during the Obama administration as it works to shrink the federal government’s regulatory footprint.

In a report, the Trump administration said it had withdrawn 469 planned regulatory actions that had been part of the Obama administration’s regulatory agenda published last fall. Officials also reconsidered 391 active regulatory proceedings actions by reclassifying them as long-term or inactive “allowing for further careful review,” the White House said.

The administration’s move to eliminate regulations makes good on a much-repeated Trump campaign promise to promote business-friendly policies. Investors have also anticipated the action, helping to push share prices higher on hopes fewer regulations will unfetter business growth and lead to higher corporate profits.

The Trump administration has identified nearly 300 regulations related to energy production and environmental protection it plans to rescind, review or delay across three agencies – the Environmental Protection Agency and the Interior and Energy Departments.

Trump had already identified several of the regulations as targets in his March executive orders on energy, but they will now undergo a formal rulemaking process to be rescinded or revised.

In February, President Donald Trump signed an executive order to place “regulatory reform” task forces and officers within federal agencies in what may be the most far reaching effort to pare back U.S. red tape in recent decades.

Trump has vowed a sweeping cut in U.S. regulations and previously ordered agencies to repeal two rules for every new one adopted.

The Interior Department is reviewing an Obama-era rule that directed companies to reduce venting and flaring and methane leaks from oil and gas production on federal and tribal land, according to a White House semi-annual government wide regulation report.

Representatives of the oil and gas industry cheered.

“We just got through eight years of a regulatory onslaught, aimed at curtailing oil and gas production. So we are very supportive of the administration’s efforts to roll back regulation,” said Kathleen Sgamma, head of the Western Energy Alliance representing oil and gas drillers in Western states.

She said membership was particularly pleased about the effort to repeal the methane rule, which the industry estimated would have cost about $50,000 per well. Methane is one of the gases scientists say is driving global climate change.

The U.S. Transportation Department said it would review a number of Obama administration proposals that were close to being finalized including making automobile event data recorders mandatory, requiring sounds for electric cars and updating some crash test dummy standards.

The Energy Department listed dozens of energy efficiency standards for commercial and household appliances that it would review.

Much of the effort is aimed at rolling back or blocking regulations proposed during the Obama administration.

The White House said the regulatory agenda “represents the beginning of fundamental regulatory reform and a reorientation toward reducing unnecessary regulatory burden on the American people.”

The plan drew condemnation.

“Six months into the administration, the only accomplishments the president has had is to rollback, delay, and rescind science-based safeguards,” said Yogin Kothari of the Union of Concerned Scientists. “Today’s release of the regulatory agenda confirms just as much. It continues to perpetuate a false narrative that regulations only have costs and no benefits.”

The regulatory agenda calls for the U.S. Labor Department to rescind an Obama-era rule that prohibits restaurants and bars from forcing servers to share their tips with untipped employees such as cooks and dishwashers. That 2011 tip-pooling regulation is also the subject of a legal challenge by the National Restaurant Association, which has asked the U.S. Supreme Court to review the rule.

(Reporting by David Shepardson, Valerie Volcovici and Robert Iafolla in Washington; Editing by Chris Sanders and Nick Zieminski)

U.S. Senate Republicans set repeal vote as healthcare overhaul sinks

FILE PHOTO - U.S. Senate Majority Leader Mitch McConnell speaks to the media about plans to repeal and replace Obamacare on Capitol Hill in Washington, DC, U.S. on June 27, 2017. REUTERS/Aaron P. Bernstein/File Photo

By Susan Cornwell

WASHINGTON (Reuters) – U.S. Senate Republican leader Mitch McConnell set a vote on a straight repeal of Obamacare after efforts to overhaul the healthcare law collapsed, but the new approach unraveled within hours on Tuesday in a sharp setback for President Donald Trump and his Republican Party.

The disarray in the Republican-controlled Senate rattled financial markets and cast doubt on the chances for getting Trump’s other domestic policy priorities, such as tax reform, through a divided Congress.

Repealing and replacing Obamacare has been a top Republican goal for seven years, and Trump made the promise a centerpiece of his White House campaign. The overhaul’s failure calls into question not only his ability to get his agenda through Congress but that of the Republican Party to govern effectively.

Saying he was disappointed, Trump told reporters at the White House that “we’re probably in that position where we’ll just let Obamacare fail.”

“We’re not going to own it, I’m not going to own it. … Republicans are not going to own it. We will let Obamacare fail, and then the Democrats are going to come to us,” he said.

McConnell gave up on efforts to overhaul the 2010 Affordable Care Act late on Monday after it became clear he did not have the votes. Instead, he announced plans to vote in coming days on a two-year transition to simply repeal the healthcare law with no replacement.

“We will now try a different way to bring the American people relief from Obamacare,” McConnell said on Tuesday as he opened the Senate, where the Republicans hold a razor-thin 52-48 majority. “I think we owe them at least that much.”

But Republican Senators Shelley Moore Capito of West Virginia, Susan Collins of Maine and Lisa Murkowski of Alaska quickly announced they would not back repeal, dooming the fledgling effort. With Democrats united in opposition, Republicans can only afford to lose two votes to pass the measure in the Senate.

(Writing by John Whitesides; Additional reporting by Caroline Humer in New York and Ginger Gibson, Richard Cowan in Washington; Editing by Tom Brown, Nick Zieminski and Jonathan Oatis)

U.S. threatens Syria, says Assad is planning chemical weapons attack

FILE PHOTO: Syria's President Bashar al-Assad speaks during an interview with Croatian newspaper Vecernji List in Damascus, Syria, in this handout picture provided by SANA on April 6, 2017. SANA/Handout via REUTERS

By Jeff Mason and John Walcott

WASHINGTON (Reuters) – The White House warned Syrian President Bashar al-Assad on Monday that he and his military would “pay a heavy price” if it conducted a chemical weapons attack and said the United States had reason to believe such preparations were underway.

The White House said in a statement released late on Monday the preparations by Syria were similar to those undertaken before an April 4 chemical attack that killed dozens of civilians and prompted U.S. President Donald Trump to order a cruise missile strike on a Syrian air base.

“The United States has identified potential preparations for another chemical weapons attack by the Assad regime that would likely result in the mass murder of civilians, including innocent children,” White House spokesman Sean Spicer said.

“If … Mr. Assad conducts another mass murder attack using chemical weapons, he and his military will pay a heavy price,” he said.

White House officials did not respond to requests for comment on potential U.S. plans or the intelligence that prompted the statement about Syria’s preparations for an attack.

Trump, who took to Twitter not long after the statement went out, focused his attention on a Fox News report related to former President Barack Obama and the 2016 election rather than developments in Syria.

Trump ordered the strike on the Shayrat airfield in Syria in April in reaction to what Washington said was a poison gas attack by Assad’s government that killed 87 people in rebel-held territory. Syria denied it carried out the attack.

Assad said in an interview with the AFP news agency earlier this year that the alleged April attack was “100 percent fabrication” used to justify a U.S. air strike.

The strike was the toughest direct U.S. action yet in Syria’s six-year-old civil war, raising the risk of confrontation with Russia and Iran, Assad’s two main military backers.

‘ABNORMAL ACTIVITY’

U.S. and allied intelligence officers had for some time identified several sites where they suspected the Assad government may have been hiding newly made chemical weapons from inspectors, said one U.S. official familiar with the intelligence.

The assessment was based in part on the locations, security surrounding the suspect sites and other information which the official, who spoke on condition of anonymity, declined to describe.

The White House warning, the official said, was based on new reports of what was described as abnormal activity that might be associated with preparations for a chemical attack.

Although the intelligence was not considered conclusive, the administration quickly decided to issue the public warning to the Assad regime about the consequences of another chemical attack on civilians in an attempt to deter such a strike, said the official, who declined to discuss the issue further.

At the time of the April strike, U.S. officials called the intervention a “one-off” intended to deter future chemical weapons attacks and not an expansion of the U.S. role in the Syrian war.

The United States has taken a series of actions over the past three months demonstrating its willingness to carry out strikes, mostly in self-defense, against Syrian government forces and their backers, including Iran.

The United States ambassador to the United Nations Nikki Haley said on Twitter: “Any further attacks done to the people of Syria will be blamed on Assad, but also on Russia and Iran who support him killing his own people.”

Washington has repeatedly struck Iranian-backed militia and even shot down a drone threatening U.S.-led coalition forces since the April military strike. The U.S. military also shot down a Syrian jet earlier this month.

Trump has also ordered stepped-up military operations against the Islamic State militant group and delegated more authority to his generals.

(Reporting by Jeff Mason and John Walcott; Additional reporting by Eric Beech, Patricia Zengerle, and Michelle Nichols; Writing by Yara Bayoumy and Jeff Mason; Editing by Paul Tait)

White House says it retains right to self-defense in Syria; Moscow warns Washington

A U.S. Navy F/A-18E Super Hornet launches from the flight deck of the aircraft carrier USS Dwight D. Eisenhower (CVN 69) in the Mediterranean Sea June 28, 2016. U.S. Navy/Mass Communication Specialist 2nd Class Ryan U. Kledzik/Handout via Reuters

By Steve Holland, Phil Stewart and Andrew Osborn

WASHINGTON/MOSCOW (Reuters) – The White House said on Monday that coalition forces fighting Islamic State militants in Syria retained the right to self-defense as Russia warned it viewed any planes flying in its area of operations as potential targets.

Tensions escalated on Sunday as the U.S. military brought down a Syrian military jet near Raqqa for bombing near U.S.-allied forces on the ground, the first time Washington had carried out such an action in the multi-pronged civil war.

It was also the first time the U.S. Air Force had shot down a manned aircraft since May 1999.

In a move that will fan tensions between Washington and Moscow, Russia made clear it was changing its military posture in response to the U.S. downing of the jet.

Russia, a staunch ally of Syrian President Bashar al-Assad, said it would treat U.S.-led coalition aircraft flying west of the Euphrates River in Syria as potential targets and track them with missile systems and military aircraft. It stopped short of saying it would shoot them down.

The Russian Defence Ministry said it was also immediately scrapping a Syrian air safety agreement with Washington designed to avoid collisions and dangerous incidents.

Moscow accused Washington of failing to honor the pact by not informing it of the decision to shoot down the Syrian plane despite Russian aircraft being airborne at the same time.

Washington hit back, saying it would “do what we can to protect our interests.”

“The escalation of hostilities among the many factions that are operating in this region doesn’t help anybody. And the Syrian regime and others in the regime need to understand that we will retain the right of self-defense, of coalition forces aligned against ISIS,” White House spokesman Sean Spicer said.

The U.S. military said it was repositioning its aircraft over Syria to ensure the safety of American air crews targeting Islamic State.

The White House also said it would work to keep lines of communication open with Russia amid the new tensions. The chairman of the Joint Chiefs of Staff said the United States was working to restore a “deconfliction” communications line with Russia meant to avoid an accidental clash over Syria.

Marine General Joseph Dunford said there were still communications between a U.S. air operations center in Qatar and Russian forces on the ground in Syria, adding: “We’ll work diplomatically and military in the coming hours to re-establish deconfliction.”

The U.S. Central Command had issued a statement saying the downed Syrian military jet had been dropping bombs near U.S.-backed SDF forces, which are seeking to oust Islamic State from the city of Raqqa.

It said the shooting down of the plane was “collective self-defense” and the coalition had contacted Russian counterparts by telephone via an established “de-confliction line to de-escalate the situation and stop the firing.

Russia is supporting Assad militarily with air power, advisers and special forces as he tries to roll back Islamic State and other militant groups. Unlike the United States, it says its presence is sanctioned by the Syrian government.

Adding to the tension, Iran launched missiles at Islamic State targets in eastern Syria on Sunday, a strike seen as a projection of military power into part of Syria identified as a top priority by Damascus and its allies.

(Writing by Yara Bayoumy; Editing by Peter Cooney)

Top Republican among wounded as gunman fires on U.S. lawmakers

U.S. Capitol Police keep watch on Capitol Hill following a shooting in nearby Alexandria, in Washington, U.S., June 14, 2017. REUTERS/Aaron P. Bernstein

By Sarah N. Lynch and Ross Colvin

ALEXANDRIA, Va. (Reuters) – A gunman opened fire on Wednesday on Republican U.S. lawmakers who were practicing near Washington for a charity baseball game, wounding senior Republican leader Steve Scalise and several others before being taken into custody, police and witnesses said.

The gunman died later of his injuries, President Donald Trump announced at the White House.

Lawmakers said the shooter, who was armed with a rifle, had exchanged fire with Capitol Hill police who were at the scene and was shot before being taken into custody.

Scalise, No. 3 in the House of Representatives Republican leadership, was shot in the hip at the baseball field in Alexandria, Virginia. He was tended to by fellow lawmakers including Brad Wenstrup, an Ohio congressman who is a physician, before being transported to a hospital.

Five people were taken from the scene to hospitals, Alexandria’s police chief, Michael Brown, told reporters. Two of the wounded were Capitol Hill police, witnesses said.

Trump, a Republican, said Scalise, a Louisiana congressman, was “badly injured” but in stable condition. He said two of the wounded were congressional staffers.

At a news conference, authorities declined to identify the suspect. The Washington Post, quoting unnamed law enforcement officials, identified him as James Hodgkinson, 66, of Belleville, Illinois. The Post reported that he owned a home inspection business.

Police and the FBI said it was too early to determine a motive in the shooting or whether the attack was an attempted political assassination.

Some 25 to 30 Republican members of the House and Senate had gathered for an early morning practice a day before the annual charity congressional baseball game pitting Republicans against Democrats, said Representative Mo Brooks of Alabama. The game is scheduled to be played at Nationals Park, home of the Washington Nationals Major League baseball team.

One congressman at the scene indicated there might have been a political motive in the attack.

“We reported to police that there was a gentleman that confronted us when we were going to our car and he wanted to know whether it was Republicans or Democrats that were out there. We said it was Republicans and he kind of started walking to the field,” Representative Ron DeSantis told Fox Business Network.

DeSantis said he did not know whether the man was the shooter.

Representative Joe Barton, who was at the scene, told reporters the gunman was a middle-aged man who appeared to be white and was wearing blue jeans and a blue shirt. Brooks said the shooter said nothing during the rampage.

The shooting took place at Eugene Simpson Stadium Park in the Del Ray neighborhood of Alexandria, which is across the Potomac River from Washington.

CAPITOL POLICE ‘HEROISM’

Brooks told CNN that during batting practice he heard a “bam” and then a quick succession of shots and saw the gunman shooting through the holes in a chain link fence.

When Scalise was shot he went down on the infield between first and second base, then dragged himself into the grassy outfield as the incident unfolded, leaving a trail of blood, Brooks said.

Two Capitol police officers who were at the scene to provide security for the lawmakers engaged the gunman with pistols, Brooks said, adding both the officers were wounded.

“But for the Capitol police and the heroism they showed, it could very well have been a large-scale massacre. All we would have had would have been baseball bats versus a rifle. Those aren’t good odds,” Brooks said.

Brooks estimated that there were 50 to 100 shots fired.

“It’s pretty well known in the neighborhood who those folks are on the baseball field,” Brooks said. “It’s not a secret we are practicing … He was going after elected officials.”

Scalise’s position as whip means he has the difficult job of trying to keep order in the fractious party ranks and rounding up votes for bills.

The shooting was certain to raise again the contentious issue of gun violence in the United States.

Scalise has been an outspoken opponent of gun control measures and has earned an “A+” rating from the National Rifle Association – the influential lobby for expanding gun ownership rights. He has co-sponsored legislation to weaken gun control laws in the District of Columbia.

‘NO SHELTER’

David Miller, who saw the shooting, described a scene in which some players were far enough away from the gunman to run for shelter, while others were pinned down in the middle of the ball field.

“There was absolutely no shelter. They were in the middle of the ball park,” he said. “They can’t run. If they get up they are a target.”

Susan Griffiths, spokeswoman for George Washington University Hospital Center, said two people were being treated there and were in critical condition.

Wednesday’s incident was the first shooting of a member of the U.S. Congress since January 2011, when Democratic Representative Gabby Giffords was seriously wounded in an assassination attempt at a gathering of her constituents in Tucson, Arizona.

She survived, but six people were killed. Giffords resigned from Congress and became an activist for gun restrictions.

“My heart is with my former colleagues, their families & staff, and the US Capitol Police- public servants and heroes today and every day,” she said in a Twitter message.

(Additional reporting by Julia Edwards Ainsley, Doina Chiacu and Susan Heavey in Washington and Gina Cherelus in New York; Writing by Daniel Wallis, Kieran Murray and Will Dunham; Editing by Frances Kerry)

White House, intel chiefs want to make digital spying law permanent

Director of National Intelligence Daniel Coats (2nd-R) testifies as he appears alongside acting FBI Director Andrew McCabe (L), Deputy Attorney General Rod Rosenstein (2nd-L) and National Security Agency Director Michael Rogers (R) at a Senate Intelligence Committee hearing on the Foreign Intelligence Surveillance Act (FISA) in Washington, U.S., June 7, 2017. REUTERS/Kevin Lamarque

By Dustin Volz

WASHINGTON (Reuters) – The White House and U.S. intelligence chiefs Wednesday backed making permanent a law that allows for the collection of digital communications of foreigners overseas, escalating a fight in Congress over privacy and security.

The law, enshrined in Section 702 of the Foreign Intelligence Surveillance Act, is due to expire on December 31 unless Congress votes to reauthorize it, but is considered vital by U.S. intelligence agencies.

Privacy advocates have criticized the law though for allowing the incidental collection of data belonging to millions of Americans without a search warrant.

The push to make the law permanent may lead to a contentious debate over renewal of Section 702 in Congress, where lawmakers in both parties are deeply divided over whether to adopt transparency and oversight reforms.

“We cannot allow adversaries abroad to cloak themselves in the legal protections we extend to Americans,” White House Homeland Security Adviser Tom Bossert wrote in an editorial published in the New York Times newspaper on Wednesday.

U.S. Director of National Intelligence Dan Coats, speaking on behalf of other intelligence agency leaders, also told the Senate Intelligence Committee panel on Wednesday that the statute should be made permanent, saying it was necessary to keep the United States safe from national security threats.

NSA Director Rogers added that the law had been vital to preventing terrorism in allied countries as well.

Fourteen Republican senators, including every Republican member of the Senate intelligence panel, introduced a bill on Tuesday that would make part of Section 702 permanent.

The statute, which grants the National Security Agency a considerable freedom in the collection of foreigners’ digital communications, normally comes with a “sunset” clause, meaning that roughly every five years lawmakers need to reconsider its impact on privacy and civil liberties.

‘SPY ON AMERICANS’

Intelligence Director Coats said it was not feasible for the NSA to provide an estimate of the number of Americans whose communications are ensnared incidentally under Section 702.

Coats and other officials had previously told Congress they would attempt to share an estimate publicly before the statute expires. A frustrated Democratic Senator Ron Wyden, who has asked for such an estimate for several years, said Coats “went back on a pledge.”

Privacy advocates criticized the push to make Section 702 permanent, arguing that regular reviews of the law were necessary to conduct appropriate oversight and prevent potential abuses.

“After months of criticizing the government for allegedly spying on his presidential campaign, President Trump is now hypocritically endorsing a bill that would make permanent the NSA authority that is used to spy on Americans without a warrant,” said Neema Singh Guliani, legislative counsel with the American Civil Liberties Union.

Disclosures by former NSA contractor Edward Snowden in 2013 revealed the sweeping nature of 702 surveillance, prompting outrage internationally and embarrassing some U.S. technology firms shown to be involved in a program known as Prism.

Last week, Facebook <FB.O>, Amazon <AMZN.O>, Alphabet Inc’s Google <GOOGL.O> sent a letter to Congress urging lawmakers to adopt several reforms to the law, including codifying the recent termination of a type of NSA surveillance that collected Americans’ communications with someone living overseas that merely mentioned a foreign intelligence target.

Making the law permanent without changes would preclude codifying that change.

Reuters reported in March that the Trump administration supported renewal of Section 702 without any changes, citing an unnamed White House official, but it was not clear at the time whether it wanted the law made permanent.

(This version of the story corrects paragraph 14 to add dropped words “embarrassing some U.S. technology firms involved in”)

(Reporting by Dustin Volz; Editing by Alden Bentley and Paul Simao)

Trump will not block ex-FBI chief Comey’s testimony: White House

A combination photo shows U.S. President Donald Trump (L) in the House of Representatives in Washington, U.S., on February 28, 2017 and FBI Director James Comey in Washington U.S

WASHINGTON (Reuters) – U.S. President Donald Trump will not invoke executive privilege to block former FBI Director James Comey’s scheduled testimony before Congress this week, the White House said on Monday.

“In order to facilitate a swift and thorough examination of the facts sought by the Senate Intelligence Committee, President Trump will not assert executive privilege regarding James Comey’s scheduled testimony,” White House spokeswoman Sarah Sanders told reporters.

Comey was leading a Federal Bureau of Investigation probe into alleged Russian meddling in last year’s U.S. presidential election and possible collusion by Trump’s campaign when the president fired him last month.

Presidents can assert executive privilege to prevent government employees from sharing information.

If Trump had asserted executive privilege over Comey, it would have likely created the perception that the administration was seeking to hide information about the FBI’s Russia investigation.

It has been reported that Comey plans to talk about conversations in which Trump pressured him to drop his investigation into former national security advisor Mike Flynn, who was fired for failing to disclose conversations with Russian officials.

Comey is scheduled to testify for the first time since his firing before the Senate Intelligence Committee as part of the committee’s Russia-related investigation.

(Reporting by Steve Holland and Julia Edwards Ainsley; Editing by James Dalgleish and Lisa Shumaker)