Trump, Congress leaders reach deal to end shutdown

WASHINGTON — Yielding to mounting pressure and growing disruption, President Donald Trump and congressional leaders on Friday reached a short-term deal to reopen the government for three weeks while negotiations continue over the president’s demands for money to build his long-promised wall at the U.S.-Mexico border.

Trump announced the agreement to break the 35-day impasse as intensifying delays at the nation’s airports and widespread disruptions brought new urgency to efforts to resolve the standoff.

“I am very proud to announce today that we have reached a deal to end the shutdown and reopen the federal government,” he said from the Rose Garden.

After saying for weeks that he would not reopen the government without border wall money, Trump said he would soon sign a bill to re-open the government through Feb. 15 without additional money for his signature campaign promise. He said that a bipartisan committee of lawmakers would be formed to consider border spending before the new deadline.

“They are willing to put partisanship aside, I think, and put the security of the American people first,” Trump said. He asserted that “barrier or walls will be an important part of the solution.”

But he hinted that he was still considering taking unilateral action if efforts to come up with money for his wall fail. “I have a very powerful alternative, but I didn’t want to use it at this time,” he said.

Overnight and into Friday, at least five Republican senators had been calling Trump, urging him to reopen the government and have the Senate consider his request for border wall money through regular legislation, according to a person familiar with the situation who was not authorized to discuss the private talks publicly.

The breakthrough came as LaGuardia Airport in New York and Newark Liberty International Airport in New Jersey both experienced at least 90-minute delays in takeoffs Friday due to the shutdown. And the world’s busiest airport — Hartsfield-Jackson Atlanta International Airport — was experiencing long security wait times, a warning sign the week before it expects 150,000 out-of-town visitors for the Super Bowl.

Trump and the Democrats in Congress had remained at odds over his demand that any compromise include money for his coveted border wall.

The standoff became so severe that, as the Senate opened with prayer, Chaplain Barry Black called on high powers in the “hour of national turmoil” to help senators do “what is right.”

Senators were talking with increased urgency after Thursday’s defeat of competing proposals from Trump and the Democrats. The bipartisan talks provided a glimmer of hope that some agreement could be reached to halt the longest-ever closure of federal agencies, at least temporarily.

“There are discussions on the Senate side,” House Speaker Nancy Pelosi told reporters Friday morning as she entered the Capitol. “We are in touch with them.” Asked about Trump’s demands for border security measures as part of a bill temporarily reopening government, Pelosi said, “One step at a time.”

Pelosi was referring to a meeting Thursday between Senate Majority Leader Mitch McConnell, R-Ky., and Minority Leader Chuck Schumer, D-N.Y., to explore next steps for solving the vitriolic stalemate.

Pressure has been building among both parties to reopen agencies immediately and pay hundreds of thousands of beleaguered federal workers while bargainers hunt for a deal.

Monday is the start of federal tax filing season. But fewer than half of the furloughed IRS employees recalled during the shutdown to handle tax returns and send out refunds reported for work as of Tuesday, according to congressional and government aides. The employees had been told to work without pay.

At the White House Thursday, Trump told reporters he’d support “a reasonable agreement” to reopen the government. He suggested he’d also want a “prorated down payment” for his long-sought border wall with Mexico but didn’t describe the term. He said he has “other alternatives” for getting wall money, an apparent reference to his disputed claim that he could declare a national emergency and fund the wall’s construction using other programs in the federal budget.

Contributing to the pressure on lawmakers to find a solution was the harsh reality confronting 800,000 federal workers, who on Friday faced a second two-week payday with no paychecks.

In an embarrassment to Trump, a Democratic proposal to end the shutdown got two more votes in the Senate on Thursday than a GOP plan, even though Republicans control the chamber 53-47. Six Republicans backed the Democratic plan, including freshman Sen. Mitt Romney, R-Utah, who’s clashed periodically with the president.

The Senate first rejected a Republican plan reopening the government through September and giving Trump the $5.7 billion he’s demanded for building segments of that wall, a project that he’d long promised Mexico would finance. The 50-47 vote for the measure fell 10 shy of the 60 votes needed to succeed.

Minutes later, senators voted 52-44 for a Democratic alternative that sought to open padlocked agencies through Feb. 8 with no wall money. That was eight votes short. It was aimed at giving bargainers time to seek an accord while getting paychecks to government workers who are either working without pay or being forced to stay home.

Thursday’s votes came after Vice-President Mike Pence lunched privately with restive GOP senators, who told him they were itching for the standoff to end, participants said. Sen. Roy Blunt, R-Mo., said their message to Pence was, “Find a way forward.”

Throughout, the two sides issued mutually exclusive demands that have blocked negotiations from even starting: Trump has refused to reopen government until Congress gives him the wall money, and congressional Democrats have rejected bargaining until he reopens government.

___

Associated Press writer Zeke Miller contributed to this story from Washington.

Andrew Taylor, Alan Fram And Catherine Lucey, The Associated Press

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Ottawa’s avalanche of spending hasn’t helped First Nations

Published on November 19, 2024

Todayville

From the Fraser Institute

By Tom Flanagan

When Justin Trudeau came to power in 2015, he memorably said that the welfare of Indigenous Canadians was his highest priority. He certainly has delivered on his promise, at least in terms of shovelling out money.

During his 10 years in office, budgeted Indigenous spending has approximately tripled, from about $11 billion to almost $33 billion. Prime Minister Trudeau’s instruction to the Department of Justice to negotiate rather than litigate class actions has resulted in paying tens of billions of dollars to Indigenous claimants over alleged wrongs in education and other social services. And his government has settled specific claims—alleged violations of treaty terms or of the Indian Act—at four times the previous rate, resulting in the award of at least an additional $10 billion to First Nations government.

But has this avalanche of money really helped First Nations people living on reserves, who are the poorest segment of Canadian society?

One indicator suggests the answer is yes. The gap between reserves and other communities—as measured by the Community Well-Being Index (CWB), a composite of income, employment, housing and education—fell from 19 to 16 points from 2016 to 2021. But closer analysis shows that the reduction in the gap, although real, cannot be due to the additional spending described above.

The gain in First Nations CWB is due mainly to an increase in the income component of the CWB. But almost all of the federal spending on First Nations, class-action settlements and specific claims do not provide taxable income to First Nations people. Rather, the increase in income documented by the CWB comes from the greatly increased payments legislated by the Liberals in the form of the Canada Child Benefit (CCB). First Nations people have a higher birth rate than other Canadians, so they have more children and receive more (on average) from the Canada Child Benefit. Also, they have lower income on average than other Canadians, so the value of the CCB is higher than comparable non-Indigenous families. The result? A gain in income relative to other Canadians, and thus a narrowing of the CWB gap between First Nations and other communities.

There’s an important lesson here. Tens of billions in additional budgetary spending and legal settlements did not move the needle. What did lead to a measurable improvement was legislation creating financial benefits for all eligible Canadian families with children regardless of race. Racially inspired policies are terrible for many reasons, especially because they rarely achieve their goals in practise. If we want to improve life for First Nations people, we should increase opportunities for Canadians of all racial backgrounds and not enact racially targeted policies.

Moreover, racial policies are also fraught with unintended consequences. In this case, the flood of federal money has made First Nations more dependent rather than less dependent on government. In fact, from 2018 to 2022, “Own Source Revenue” (business earnings plus property taxes and fees) among First Nations bands increased—but not as much as transfers from government. The result? Greater dependency on government transfers.

This finding is not just a statistical oddity. Previous research has shown that First Nations who are relatively less dependent on government transfers tend to achieve higher living standards (again, as measured by the CWB index). Thus, the increase in dependency presided over by the Trudeau government does not augur well for the future.

One qualification: this finding is not as robust as I would like because the number of band governments filing reports on their finances has drastically declined. Of 630 First Nation governments, only 260 filed audited statements for fiscal 2022. All First Nations are theoretically obliged by the First Nations Financial Transparency Act, 2013, to publish such statements, but the Trudeau government announced there would be no penalties for non-compliance, leading to a precipitous decline in reporting.

This is a shame, because First Nations, as they often insist, are governments, not private organizations. And like other governments, they should make their affairs visible to the public. Also, most of their income comes from Canadian taxpayers. Both band members and other Canadians have a right to know how much money they receive, how it’s being spent and whether it’s achieving its intended goals.

Author:

Tom Flanagan

Professor Emeritus of Political Science and Distinguished Fellow, School of Public Policy, University of Calgary

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Musk, Ramaswamy to lead Trump efforts to cut waste, fraud in federal government

Published on November 13, 2024

Todayville

From The Center Square

By Brett Rowland

During his campaign, Ramaswamy proposed cutting 75% of the federal workforce. Musk recently suggested that he could cut $2 trillion from the federal budget, or about one-third of total U.S. spending.

President-elect Donald Trump picked Tesla CEO Elon Musk and businessman Vivek Ramaswamy to lead a newly created Department of Government Efficiency.

The department’s acronym, DOGE, is a nod to Musk’s favorite cryptocurrency, dogecoin. Trump said the new group will pave the way for his administration to “dismantle government bureaucracy, slash excess regulation, cut wasteful expenditures and restructure federal agencies.”

Trump laid out lofty goals for the group in his announcement this week.

“It will become, potentially, ‘The Manhatten Project,’ of our time,” Trump’s announcement said. “Republican politicians have dreamed about the objectives of ‘DOGE’ for a very long time.”

It won’t be an official government agency, which will likely allow Musk and Ramaswamy to avoid public financial disclosures.

Trump said the change he’s looking for won’t come from within the existing federal government.

“To drive this kind of change, the Department of Government Efficiency will provide advice and guidance from outside the government, and will partner with the White House and Office of Management & Budget to drive large scale structural reform and create and entrepreneurial approach to government never seen before,” the announcement noted.

Trump said he looks forward to what Musk and Ramaswamy can accomplish.

“Importantly, we will drive out the massive waste and fraud which exists throughout our annual $6.5 trillion of government spending,” he said.

Trump also gave them a deadline: July 4, 2026.

“A smaller government, with more efficiency and less bureaucracy will be the perfect gift to America” on the 250th anniversary of the Declaration of Independence, according to the announcement.

Ramaswamy, who dropped out the race for the GOP nomination to endorse Trump in January, has previously proposed significant cuts. During his campaign, Ramaswamy proposed cutting 75% of the federal workforce.

Musk recently suggested that he could cut $2 trillion from the federal budget, or about one-third of total U.S. spending. He’s been tossing out ideas on X, previously Twitter before Musk bought the company and changed the name.

“The world is suffering slow strangulation by overregulation. Every year, the noose tightens a little more,” Musk wrote in a post on X on Wednesday. “We finally have a mandate to delete the mountain of choking regulations that do not serve the greater good.”

Musk also said he isn’t a threat to democracy, but a threat to bureaucracy.

DOGE already has an X account. It’s first post: “Working overtime to ensure your tax dollars will be spent wisely!”

Some budget experts have called Musk’s pledge to cut $2 trillion a pipe dream, noting that many of the problems DOGE wants to address have proven intractable.

Brian Riedl, a senior fellow at the Manhattan Institute think tank, called Musk’s proposal “a random number unattached to reality.”

Marc Goldwein, the senior vice president and senior policy director for the Committee for a Responsible Federal Budget, said it could be done with 10 aggressive policies, mostly focused on Medicare and Medicaid.

“The government can legitimately save trillions over a decade by reducing waste and improving efficiency – and I hope we do,” Goldwein wrote on X. “Achieving these savings requires major changes to how and how much we pay for health care.”

Medicare (annual cost of about $1 trillion) is a federal health insurance program for people 65 or older, and some people younger than 65 with certain disabilities or conditions. Medicaid (annual cost of about $558 billion) is a joint federal and state program that helps cover medical costs for some people with limited income and resources.

The Government Accountability Office, which serves as the research arm of Congress, estimated annual fraud losses cost taxpayers between $233 billion and $521 billion annually, in a report in April. The fraud estimate’s range represents 3% to 7% of average federal obligations. The Office of Management and Budget publicly questioned that estimate, calling it “not plausible.”

“OMB has significant concerns that this report will not further efforts to prevent and reduce fraud, but rather will create confusion and promote misleading generalizations that have no factual connection to specific federal programs,” Jason Miller, the deputy director for management at the Office of Management and Budget, wrote of OMB concerns in a three-page letter to officials with the Government Accountability Office.

On the campaign trail, Ramaswamy detailed his plan to reduce the federal workforce by 75% during an event at the America First Policy Institute in Washington in 2023.

Ramaswamy said he would shutter the FBI (about 35,000 employees); the Bureau of Alcohol, Tobacco, Firearms a nd Explosives (5,099 employees); the U.S. Department of Education (about 4,200 employees); the Nuclear Regulatory Commission (about 3,000 employees); and the Department of Agriculture’s Food and Nutrition Services (about 1,500 employees).

Under Ramaswamy’s campaign plan, some 15,000 FBI employees would be moved to other agencies such as the U.S. Marshals Service, U.S. Secret Service, Treasury’s Financial Crimes Enforcement Network, Drug Enforcement Administration, Defense Intelligence Agency, and Commerce’s Bureau of Industry and Security.

Some groups called the Department of Government Efficiency goals a stretch. Others had more pointed things to say.

Lisa Gilbert, co-president of Public Citizen, a progressive consumer advocacy organization founded by Ralph Nader, said the government agencies and regulations Ramaswamy proposed cutting are in place to protect people.

“The purpose of government regulations is to protect the American people,” she said in a statement. “We all depend on these regulations to protect our air, water, workers, children’s safety, and so much more. ‘Cutting red tape’ is shorthand for getting rid of the safeguards that protect us in order to benefit corporate interests.”