Trump ends shutdown, signs bill to reopen government

WASHINGTON — Submitting to mounting pressure, President Donald Trump has signed a bill to reopen the government for three weeks, backing down from his demand that Congress give him money for his border wall before federal agencies go back to work.

Standing alone in the Rose Garden Friday, Trump said he would sign legislation funding shuttered agencies until Feb. 15 and try again to persuade lawmakers to finance his long-sought wall. The deal he reached with congressional leaders contains no new money for the wall but ends the longest shutdown in U.S. history.

First the Senate, then the House swiftly and unanimously approved the deal. Late Friday, Trump signed it into law. The administration asked federal department heads to reopen offices in a “prompt and orderly manner” and said furloughed employees can return to work.

Trump’s retreat came in the 35th day of the partial shutdown as intensifying delays at the nation’s airports and another missed payday for hundreds of thousands of federal workers brought new urgency to efforts to resolve the standoff.

“This was in no way a concession,” Trump said in a tweet late Friday, fending off critics who wanted him to keep fighting. “It was taking care of millions of people who were getting badly hurt by the Shutdown with the understanding that in 21 days, if no deal is done, it’s off to the races!”

The shutdown ended as Democratic leaders had insisted it must — reopen the government first, then talk border security.

“The president thought he could crack Democrats, and he didn’t, and I hope it’s a lesson for him,” said the Senate Democratic leader, Chuck Schumer. House Speaker Nancy Pelosi said of her members: “Our unity is our power. And that is what maybe the president underestimated.”

Trump still made the case for a border wall and maintained he might again shut down the government over it. Yet, as negotiations restart, Trump enters them from a weakened position. A strong majority of Americans blamed him for the standoff and rejected his arguments for a border wall, recent polls show.

“If we don’t get a fair deal from Congress, the government will either shut down on Feb. 15, again, or I will use the powers afforded to me under the laws and Constitution of the United States to address this emergency,” Trump said.

The president has said he could declare a national emergency to fund the border wall unilaterally if Congress doesn’t provide the money. Such a move would almost certainly face legal hurdles.

As part of the deal with congressional leaders, a bipartisan committee of House and Senate lawmakers was being formed to consider border spending as part of the legislative process in the weeks ahead.

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

The deal includes back pay for some 800,000 federal workers who have gone without paychecks. The Trump administration promises to pay them as soon as possible.

Also expected is a new date for the president to deliver his State of the Union address, postponed during the shutdown. But it will not be Jan. 29 as once planned, according to a person familiar with the planning but unauthorized to discuss it.

As border talks resume, Senate Majority Leader Mitch McConnell said he hopes there will be “good-faith negotiations over the next three weeks to try to resolve our differences.”

Schumer said that while Democrats oppose the wall money, they agree on other ways to secure the border “and that bodes well for coming to an eventual agreement.”

In striking the accord, Trump risks backlash from conservatives who pushed him to keep fighting for the wall. Some lashed out Friday for his having yielded, for now, on his signature campaign promise.

Conservative commentator Ann Coulter suggested on Twitter that she views Trump as “the biggest wimp” to serve as president.

Money for the wall is not at all guaranteed, as Democrats have held united against building a structure as Trump once envisioned, preferring other types of border technology. Asked about Trump’s wall, Pelosi, who has said repeatedly she won’t approve money for it, said: “Have I not been clear? No, I have been very clear.”

Within the White House, there was broad recognition among Trump’s aides that the shutdown pressure was growing, and they couldn’t keep the standoff going indefinitely. The president’s approval numbers had suffered during the impasse. Overnight and Friday, several Republicans were calling on him openly, and in private, to reopen the government.

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 because of 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.

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. Bipartisan talks provided a glimmer of hope Friday that some agreement could be reached. But several senators said they didn’t know what to expect as they arrived to watch the president’s televised address from their lunchroom off the Senate floor.

The Senate first rejected a Republican plan Thursday 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. But it earned more support than Trump’s plan, even though Republicans control the chamber 53-47. 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.

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

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

___

Associated Press writers Catherine Lucey, Alan Fram, Andrew Taylor, Colleen Long, Matthew Daly, Laurie Kellman and Juliet Linderman contributed to this report.

Jill Colvin, Lisa Mascaro And Zeke Miller, 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.”