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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Taxpayers Federation calling on BC Government to scrap failed Carbon Tax

Published on January 16, 2025

Todayville

From the Canadian Taxpayers Federation

By Carson Binda

BC Government promised carbon tax would reduce CO2 by 33%. It has done nothing.

The Canadian Taxpayers Federation is calling on the British Columbia government to scrap the carbon tax as new data shows the province’s carbon emissions have continued to rise, despite the oldest carbon tax in the country.

“The carbon tax isn’t reducing carbon emissions like the politicians promised,” said Carson Binda, B.C. Director for the Canadian Taxpayers Federation. “Premier David Eby needs to axe the tax now to save British Columbians money.”

Emissions data from the provincial government shows that British Columbia’s emissions have risen since the introduction of a carbon tax.

Total emissions in 2007, the last year without a provincial carbon tax, stood at 65.5 MtCO2e, while 2022 emissions data shows an increase to 65.6 MtCO2e.

When the carbon tax was introduced, the B.C. government pledged that it would reduce greenhouse gas emissions by 33 per cent.

The Eby government plans to increase the B.C. carbon tax again on April 1, 2025. After that increase, the carbon tax will add 21 cents to the cost of a litre of natural gas, 25 cents per litre of diesel and 18 cents per cubic meter of natural gas.

“The carbon tax has cost British Columbians a lot of money, but it hasn’t helped the environment as promised,” Binda said. “Eby has a simple choice: scrap the carbon tax before April 1, or force British Columbians to pay even more to heat our homes and drive to work.”

If a family fills up the minivan once per week for a year, the carbon tax will cost them $728. The carbon tax on natural gas will add $435 to the average family’s home heating bills in the 12 months after the April 1 carbon tax hike.

Other provinces, like Saskatchewan, have unilaterally stopped collecting the carbon tax on essentials like home heating and have not faced consequences from Ottawa.

“British Columbians need real relief from the costs of the provincial carbon tax,” Binda said. “Eby needs to stop waiting for permission from the leaderless federal government and scrap the tax on British Columbians.”

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The problem with deficits and debt

Published on January 13, 2025

Todayville

From the Fraser Institute

By Tegan Hill and Jake Fuss

This fiscal year (2024/25), the federal government and eight out of 10 provinces project a budget deficit, meaning they’re spending more than collecting in revenues. Unfortunately, this trend isn’t new. Many Canadian governments—including the federal government—have routinely ran deficits over the last decade.

But why should Canadians care? If you listen to some politicians (and even some economists), they say deficits—and the debt they produce—are no big deal. But in reality, the consequences of government debt are real and land squarely on everyday Canadians.

Budget deficits, which occur when the government spends more than it collects in revenue over the fiscal year, fuel debt accumulation. For example, since 2015, the federal government’s large and persistent deficits have more than doubled total federal debt, which will reach a projected $2.2 trillion this fiscal year. That has real world consequences. Here are a few of them:

Diverted Program Spending: Just as Canadians must pay interest on their own mortgages or car loans, taxpayers must pay interest on government debt. Each dollar spent paying interest is a dollar diverted from public programs such as health care and education, or potential tax relief. This fiscal year, federal debt interest costs will reach $53.7 billion or $1,301 per Canadian. And that number doesn’t include provincial government debt interest, which varies by province. In Ontario, for example, debt interest costs are projected to be $12.7 billion or $789 per Ontarian.

Higher Taxes in the Future: When governments run deficits, they’re borrowing to pay for today’s spending. But eventually someone (i.e. future generations of Canadians) must pay for this borrowing in the form of higher taxes. For example, if you’re a 16-year-old Canadian in 2025, you’ll pay an estimated $29,663 over your lifetime in additional personal income taxes (that you would otherwise not pay) due to Canada’s ballooning federal debt. By comparison, a 65-year-old will pay an estimated $2,433. Younger Canadians clearly bear a disproportionately large share of the government debt being accumulated currently.

Risks of rising interest rates: When governments run deficits, they increase demand for borrowing. In other words, governments compete with individuals, families and businesses for the savings available for borrowing. In response, interest rates rise, and subsequently, so does the cost of servicing government debt. Of course, the private sector also must pay these higher interest rates, which can reduce the level of private investment in the economy. In other words, private investment that would have occurred no longer does because of higher interest rates, which reduces overall economic growth—the foundation for job-creation and prosperity. Not surprisingly, as government debt has increased, business investment has declined—specifically, business investment per worker fell from $18,363 in 2014 to $14,687 in 2021 (inflation-adjusted).

Risk of Inflation: When governments increase spending, particularly with borrowed money, they add more money to the economy, which can fuel inflation. According to a 2023 report from Scotiabank, government spending contributed significantly to higher interest rates in Canada, accounting for an estimated 42 per cent of the increase in the Bank of Canada’s rate since the first quarter of 2022. As a result, many Canadians have seen the costs of their borrowing—mortgages, car loans, lines of credit—soar in recent years.

Recession Risks: The accumulation of deficits and debt, which do not enhance productivity in the economy, weaken the government’s ability to deal with future challenges including economic downturns because the government has less fiscal capacity available to take on more debt. That’s because during a recession, government spending automatically increases and government revenues decrease, even before policymakers react with any specific measures. For example, as unemployment rises, employment insurance (EI) payments automatically increase, while revenues for EI decrease. Therefore, when a downturn or recession hits, and the government wants to spend even more money beyond these automatic programs, it must go further into debt.

Government debt comes with major consequences for Canadians. To alleviate the pain of government debt on Canadians, our policymakers should work to balance their budgets in 2025.