White House: Trump would accept less money for border wall

WASHINGTON — Both sides in the long-running fight over funding President Donald Trump’s U.S.-Mexico border wall appear to have moved toward each other, but a shutdown of one-fourth of the federal government entered Christmas without a clear resolution in sight.

In fact, a top White House official warned the shutdown could stretch into January.

Acting White House chief of staff Mick Mulvaney, who is also the budget director, said he was waiting to hear from Senate Democratic leader Chuck Schumer of New York about a counteroffer the White House presented Schumer over the weekend.

Mulvaney would only say the offer was between Trump’s $5.7 billion request and $1.3 billion Democrats have offered.

“We moved off of the five and we hope they move up from their 1.3,” Mulvaney said less than a day after a senior administration official insisted that Congress would have to cave into Trump’s demand for the shutdown to end, highlighting Trump’s unpredictable negotiating style.

Schumer’s office said the parties remained “very far apart.”

Sen. Dick Durbin, D-Ill., argued for increased use of technology along the border instead of “some medieval wall.” Asked whether he’s willing to offer more money as long as it is not spent on a wall, Durbin responded: “Absolutely.”

A stalemate over the wall led parts of the government to shut down Saturday after funding for numerous departments and agencies expired. The closure affects hundreds of thousands of federal workers across the country and was expected to last at least through Thursday, when the House and Senate meet again.

Monday and Tuesday, Christmas Eve and Christmas, respectively, are federal holidays, meaning the government would have been closed anyway. That means Wednesday is the first day the public could begin to feel the effects of lost government services, Mulvaney said.

He predicted the shutdown could go into January, when Democrats assume control of the House based on their midterm election gains.

“It’s very possible that this shutdown will go beyond the 28th and into the new Congress,” Mulvaney said.

Justin Goodman, a spokesman for Schumer, countered: “If Director Mulvaney says the Trump Shutdown will last into the New Year, believe him, because it’s their shutdown.” Trump recently declared he’d be “proud” to shut down the government over border issues.

Democrats held firm Sunday in opposition to a wall, which Trump promised his political base he would build. Mulvaney said “the president’s not going to not accept money for a border wall.”

Trump tweeted Sunday, the shutdown’s second day, that what’s needed is “a good old fashioned WALL that works,” not aerial drones or other measures that “are wonderful and lots of fun” but not the answer to address drugs, gangs, human trafficking and other criminal elements entering the country.

He put off plans to spend Christmas at his Florida estate and remained in Washington.

The routines of about 800,000 federal employees, meanwhile, were about to be disrupted.

More than half of those employees are deemed essential, such as U.S. Secret Service agents and Transportation Security Administration airport agents, must work without pay, though retroactive pay is expected. Another 380,000 were to be furloughed, meaning they will not report to work but would be paid later. Legislation ensuring that workers receive back pay was expected to clear Congress.

Trump had savored the prospect of a shutdown over the wall, saying he’d be “proud” to force one over an issue that was one of his biggest campaign promises. He had said he wouldn’t blame Democrats for a shutdown but now blames them for not contributing to the 60 votes needed for such legislation to clear the closely divided Senate.

But Democrats aren’t the only ones resisting Trump on the wall. Republican Sen. Bob Corker of Tennessee, who is leaving Congress in January and has criticized Trump on other issues in the past, called the border-wall fight a “made-up fight so the president can look like he’s fighting.”

“This is something that is unnecessary. It’s a spectacle. And, candidly, it’s juvenile. The whole thing is juvenile,” Corker said, arguing for measures that he said would secure the border better than a wall.

Democrats said they were open to proposals that don’t include a wall, which Schumer said is costly and ineffective. They have offered to keep spending at existing levels of $1.3 billion for border fencing and other security.

Senators have approved a bipartisan deal to keep the government open into February and provide $1.3 billion for border security projects, but not the wall. But as Trump faced criticism from conservatives for “caving” on a campaign promise, he pushed the House to approve a package temporarily financing the government but also setting aside $5.7 billion for the border wall. That bill lacks the votes to pass the Senate.

The stalemate blocked money for nine of 15 Cabinet-level departments and dozens of agencies, including Homeland Security, Transportation, Interior, Agriculture, State and Justice.

The Pentagon and the departments of Veterans Affairs and Health and Human Services are among those that Congress has fully funded and will operate as usual.

Mulvaney appeared on “Fox News Sunday” and ABC’s “This Week.” Durbin spoke on NBC’s “Meet the Press” and Corker was interviewed on “State of the Union” on CNN.

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Associated Press writers Alan Fram, Mary Clare Jalonick, Jill Colvin, Lisa Mascaro and Kevin Freking contributed to this report.

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Follow Darlene Superville on Twitter: http://www.twitter.com/dsupervilleap

Darlene Superville, 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.”