Republican effort to gut Obamacare crashes in U.S. Senate

The United States Capitol is seen prior to an all night round of health care votes on Capitol Hill in Washington, U.S., July 27, 2017. REUTERS/Aaron P. Bernstein

By Yasmeen Abutaleb, Amanda Becker and David Morgan

WASHINGTON (Reuters) – A U.S. Senate led by Donald Trump’s fellow Republicans failed by a single vote to pass a healthcare bill on Friday, delivering a stinging blow to the president as it undermined his campaign promise to dismantle Obamacare.

Three Republican senators – John McCain, Susan Collins and Lisa Murkowski – joined Senate Democrats in the dramatic early-morning 51-49 vote rejecting the bill. The outcome may spell doom for the party’s seven-year quest to gut a 2010 law that was Democratic former President Barack Obama’s signature domestic policy achievement.

For the moment the Affordable Care Act, which extended health insurance to 20 million people and drove the percentage of uninsured people to historic lows, remains in place and must be run by an administration that is hostile to it.

This leaves health insurers unsure how long the administration will continue to make billions of dollars in Obamacare payments that help cover out-of-pocket medical expenses for low-income Americans.

In Friday’s vote, Senate Majority Leader Mitch McConnell was unsuccessful in securing passage of even a stripped-down so-called skinny bill that would have repealed a few key parts of Obamacare. Broader legislation was defeated earlier in the week.

“It’s time to move on,” McConnell, whose reputation as a master strategist was in tatters, said on the Senate floor after the vote that unfolded at roughly 1:30 a.m.

“The American people are going to regret that we couldn’t find a better way forward,” McConnell added.

Republicans have long denounced Obamacare – which expanded the Medicaid health insurance for the poor and disabled and created online marketplaces for individuals to obtain coverage – as an intrusion by government on people’s healthcare decisions.

The Senate failure to move forward on dismantling it called into question the Republican Party’s basic ability to govern even as it controls the White House, Senate and House of Representatives.

Trump has not had a major legislative victory after more than six months in office. He had promised to get major healthcare legislation, tax cuts and a boost in infrastructure spending through Congress in short order.

“3 Republicans and 48 Democrats let the American people down. As I said from the beginning, let Obamacare implode, then deal. Watch!” Trump wrote on Twitter after the vote.

But McCain wrote on Twitter, “Skinny repeal fell short because it fell short of our promise to repeal & replace Obamacare w/ meaningful reform.”

Republicans released the skinny bill just three hours before voting began. It would have retroactively repealed Obamacare’s penalty on individuals who do not obtain health insurance, repealed for eight years a penalty on certain businesses that do not provide employees with insurance and repealed a tax on medical devices until 2020. The nonpartisan Congressional Budget Office estimated that if it became law, 15 million fewer Americans would be insured in 2018 than under existing law.

The Affordable Care Act was passed by a then-Democratic controlled Congress with no Republican support in 2010. But Republicans have failed to come up with a consensus plan to replace it at a time when they hold all the power in Washington.

UNCERTAINTY FOR HEALTHCARE INDUSTRY

Health insurers have until September to finalize their 2018 health plans in many Obamacare marketplaces.

Some insurers, including Humana and Aetna, have pulled out of such markets, citing the uncertainty over the payments. Others have raised rates by double digits and said that they will need to raise rates another 20 percent if the uncertainty does not ease. Anthem Inc, which has already left three of the 14 states where it sells Blue Cross Blue Shield plans, said this week it might pull out of more.

Wall Street traded lower on Friday with less focus on the news from the Senate overnight and more on key earnings from Amazon and Exxon. Shares of hospitals were mixed: Tenet Healthcare fell 2 percent, Community Health Systems was nearly flat and HCA Healthcare gained 1.2 percent. Shares of health insurers were also mixed. Aetna was off 0.2 percent, Anthem gained 0.4 percent and Humana was off 0.3 percent.

Democrats, and some Republicans, said the bill’s failure could present an opportunity for the two parties to work together to fix problematic areas of the Obamacare law without repealing it.

Top House Democrat Nancy Pelosi called on Republican House Speaker Paul Ryan to establish a process for moving forward on improving Obamacare, rather than repealing it.

After the House passed a bill to repeal and replace Obamacare in May, McConnell grappled to get Senate Republicans to agree on their version of the bill. Hard-line conservatives wanted a bill that would substantially gut Obamacare, while moderates were concerned over legislation that could deprive millions of people of their healthcare coverage.

Republicans hold a 52-48 majority in the 100-seat Senate and could afford to lose support from only two Republican senators, with Vice President Mike Pence ready to cast a tie-breaking vote on the Senate floor.

DRAMA OVER MCCAIN

As the vote on the skinny bill approached, all eyes in the Senate chamber were on McCain. The 2008 Republican presidential nominee flew back from Arizona earlier in the week after being diagnosed this month with brain cancer. McCain, an 80-year-old former prisoner of war in Vietnam who tangled with Trump during the 2016 election campaign and was disparaged by him, won praise for this from the president.

McCain, a veteran senator who has long been known for his independent streak, delivered a rousing speech on Tuesday calling for cooperation between the parties and then cast a decisive vote in allowing the Senate to take up the healthcare bill.

Early on Friday, he sat on the Senate floor talking to Collins, Murkowski, and Republican Senator Jeff Flake, also from Arizona. Collins and Murkowski both voted this week against broader Republican healthcare proposals, and both had concerns about the pared-down proposal.

McCain was approached before voting began by Pence and a close friend, Republican Senator Lindsey Graham. After speaking to them, McCain walked across the Senate floor to tell top Senate Democrat Chuck Schumer and other Democrats he would vote with them.

When McCain walked to the front of the Senate chamber to cast his deciding “no” vote, giving a thumbs down, Democrats cheered, knowing the bill would fail.

Trump had often expressed exasperation over the failure of congressional Republicans to overcome internal divisions to repeal Obamacare, but offered no policy specifics himself.

He has demanded at various times that Obamacare should be allowed to collapse on its own, that it should be repealed without replacement, and that it should be repealed and replaced.

(Additional reporting by Susan Cornwell, Richard Cowan and Eric Walsh in Washington, Saikat Chatterjee and Abhinav Ramnarayan in London; Writing by Will Dunham; Editing by Louise Ireland and Frances Kerry)

In New York, Trump to use gang violence to press for deportations

A makeshift memorial stands outside a park, where bodies of four men were found on April 13, in Central Islip, New York, U.S., April 28, 2017. REUTERS/Shannon Stapleton

By Roberta Rampton and Mica Rosenberg

WASHINGTON/NEW YORK (Reuters) – President Donald Trump will travel on Friday to a New York community shocked by a recent spate of graphic gang murders to highlight his efforts to stop illegal immigration and boost deportations.

Trump’s trip to Long Island gives the president an opportunity to showcase some progress on his agenda even as other legislative efforts flounder – and some respite from the chaos of a nasty power struggle among his senior staff that blew up on Thursday.

On Friday, Trump will highlight his administration’s push to deport members of the Mara Salvatrucha gang, better known as MS-13, the existence of which his White House blames on lax enforcement of illegal immigration from Central America.

“It’s going to be a very forceful message about just how menacing this threat is, and just how much pain is inflicted on American communities,” a senior administration official told reporters ahead of the trip.

Trump’s visit comes as his Attorney General Jeff Sessions traveled to El Salvador to highlight progress on the gang crack-down.

The gang took root in Los Angeles in the 1980s in neighborhoods populated with immigrants from El Salvador who had fled civil war. The Justice Department has said MS-13 now has more than 10,000 members across the United States.

On Long Island – not far from the New York City borough of Queens, where Trump grew up – MS-13 was behind the murders of two teenage girls in a suburban neighborhood last September, and four young men in a park in April.

There have been 17 murders on Long Island tied to the gang since January 2016, the Suffolk County Police Department has said.

Under Trump, Immigration and Customs Enforcement (ICE) has targeted the gang, deporting more than 2,700 criminal gang members in fiscal 2017, up from 2,057 in the whole of the previous fiscal year, the White House has said.

“We are throwing MS-13 the hell out of here so fast,” Trump said earlier this week at a rally in Ohio.

Trump made concerns about illegal immigration a centerpiece of his campaign. One of his first actions in office was to scrap Obama-era guidelines that prioritized convicted criminals for deportations.

His administration is now taking a harder line on Central American youth who have crossed the border illegally without guardians – a group that law enforcement has said has been targeted for recruitment by MS-13.

Immigration agents plan to target teenagers who are suspected gang members, even if they are not charged with any crime, according to a memo seen by Reuters.

But civil rights groups say police and immigration agents have unfairly targeted some teenagers.

“We received complaints in recent weeks from terrified parents on Long Island that teens have already been detained on the thinnest of rationales, such as wearing a basketball jersey,” said Sebastian Krueger from the New York Civil Liberties Union.

There have been at least two lawsuits filed by people claiming they were mistakenly included in gang databases and then targeted for deportation, said Paromita Shah, from the National Immigration Project at the National Lawyers Guild.

(Reporting by Roberta Rampton and Mica Rosenberg; Editing by Lisa Shumaker)

U.S. coal exports soar, in boost to Trump energy agenda, data shows

FILE PHOTO: Dump trucks haul coal and sediment at the Black Butte coal mine outside Rock Springs, Wyoming, United States, April 4, 2017. REUTERS/Jim Urquhart/File Photo

By Timothy Gardner and Nina Chestney

WASHINGTON/LONDON (Reuters) – U.S. coal exports have jumped more than 60 percent this year due to soaring demand from Europe and Asia, according to a Reuters review of government data, allowing President Donald Trump’s administration to claim that efforts to revive the battered industry are working.

The increased shipments came as the European Union and other U.S. allies heaped criticism on the Trump administration for its rejection of the Paris Climate Accord, a deal agreed by nearly 200 countries to cut carbon emissions from the burning of fossil fuels like coal.

The previously unpublished figures provided to Reuters by the U.S. Energy Information Administration showed exports of the fuel from January through May totaled 36.79 million tons, up 60.3 percent from 22.94 million tons in the same period in 2016. While reflecting a bounce from 2016, the shipments remained well-below volumes recorded in equivalent periods the previous five years.

They included a surge to several European countries during the 2017 period, including a 175 percent increase in shipments to the United Kingdom, and a doubling to France – which had suffered a series of nuclear power plant outages that required it and regional neighbors to rely more heavily on coal.

“If Europe wants to lecture Trump on climate then EU member states need transition plans to phase out polluting coal,” said Laurence Watson, a data scientist working on coal at independent think tank Carbon Tracker Initiative in London.

Nicole Bockstaller, a spokeswoman at the EU Commission’s Energy and Climate Action department, said that the EU’s coal imports have generally been on a downward trend since 2006, albeit with seasonable variations like high demand during cold snaps in the winter.

Overall exports to European nations totaled 16 million tons in the first five months of this year, up from 10.5 million in the same period last year, according to the figures. Exports to Asia meanwhile, totaled 12.3 million tons, compared to 6.2 million tons in the year-earlier period.

For a graphic on U.S. coal exports, click http://fingfx.thomsonreuters.com/gfx/rngs/USA-COAL-EXPORTS/010050650E9/index.html

Trump had campaigned on a promise to “cancel” the Paris deal and sweep away Obama-era environmental regulations to help coal miners, whose output last year sank to the lowest level since 1978. The industry has been battered for years by surging supplies of cheaper natural gas, brought on by better drilling technologies, and increased use of natural gas to fuel power plants.

His administration has since sought to kill scores of pending regulations he said threatened industries like coal mining, and reversed a ban on new coal leasing on federal lands.

TAKING CREDIT

Both the coal industry and the Trump administration said the rising exports of both steam coal, used to generate electricity, and metallurgical coal, used in heavy industry, were evidence that Trump’s agenda was having a positive impact.

“Simply to know that coal no longer has to fight the government – that has to have some effect on investment decisions and in the outlook by companies, producers and utilities that use coal,” said Luke Popovich, a spokesman for the National Mining Association.

Shaylyn Hynes, a spokeswoman at the U.S. Energy Department, said: “These numbers clearly show that the Trump Administration’s policies are helping to revive an industry that was the target of costly and job killing overregulation from Washington for far too long.”

Efforts to obtain comment from exporters Arch Coal and privately held Murray Energy Corp were unsuccessful. Contura Energy, which emerged as part of Alpha Natural Resource’s bankruptcy and restructuring, and filed for public offering in May, declined to comment.

A spokesman for Peabody Energy, the largest coal producer, though without a major export profile, said the United States was generally a “swing supplier of seaborne coal.”

U.S. Energy Information Administration analyst Elias Johnson said the U.S. coal industry may now be better positioned to meet foreign demand because U.S. miners have learned to produce at lower cost, after coming through a series of recent bankruptcies.

“There’s the possibility that the U.S. will become more of a primary player in the global coal trade market,” he said.

But he added there are also plenty of reasons the spike in demand could be temporary. For one thing, U.S. coal production and transportation costs are much higher than for other producers such as Indonesia and Australia.

Because coal can often be transhipped from European ports before it is consumed, it is also hard to determine where shipments ultimately end up.

Johnson pointed out that some of the fuel shipped into Western Europe, for example, could be making its way to other places like Ukraine, which is having trouble securing coal from its separatist-held regions.

Trump said last month that his administration is offering more coal to Ukraine, but it was unclear how, given deals are typically worked out between companies.

(Editing by Richard Valdmanis and Alden Bentley)

Hypothetically speaking, U.S. Admiral says ready for nuclear strike on China if Trump so ordered

FILE PHOTO: Commander of the U.S. Pacific Fleet Admiral Scott Swift sits in front of a large poster of an Australian Navy frigate as he speaks during a media conference at the 2015 Pacific International Maratime Exposition in Sydney, Australia, October 6, 2015. To match Special Report USA-TRUMP/CARRIERS REUTERS/David Gray/File Photo

MELBOURNE (Reuters) – The U.S. Pacific Fleet commander, addressing a security conference in Australia, said in answer to a question on Thursday that he would be prepared to launch a nuclear strike on China if President Donald Trump so ordered.

The fleet spokesman later said the question was asked as an “outrageous hypothetical”.

Admiral Scott Swift was speaking at the Australian National University in Canberra when he was asked whether he would be prepared to launch a nuclear attack on China if ordered to do so by Trump.

“The answer would be yes,” he said.

Swift said that all members of the U.S. military had sworn an oath to obey officers and the U.S. president as commander in chief to defend the constitution.

“This is core to the American democracy,” he said, in a recording of the event obtained by Reuters.

“Any time you have a military that is moving away from a focus, and an allegiance, to civilian control, then we really have significant problems.”

Swift’s answer reaffirmed the principle of civilian control over the military and was based on an “outrageous hypothetical” in the question, Pacific Fleet spokesman Captain Charlie Brown told Reuters.

“Frankly, the premise of the question was ridiculous,” he said. “It was posed as an outrageous hypothetical, but the admiral simply took it as an opportunity to say the fact is that we have civilian control of the military and we abide by that principle.”

Speaking in Beijing on Friday, a spokesman of China’s Foreign Ministry also downplayed the remark.

“Many people have paid attention to this but the spokesman for the Pacific Fleet has pointed out the ridiculousness of this report,” Lu Kang told a daily news briefing.

The United States and China enjoy a generally friendly relationship, with strong economic ties, albeit with frequent barbs about trade, jobs, currencies, human rights, Tibet, the South China Sea and North Korea.

Trump has held high hopes for greater cooperation from China to exert influence over North Korea, leaning heavily on Chinese President Xi Jinping for his assistance. The two leaders had a high-profile summit in Florida in April and Trump has frequently praised Xi.

(Reporting by Colin Packham in SYDNEY and Melanie Burton in MELBOURNE; Additional reporting by Philip Wen in BEIJING; Editing by Nick Macfie and Clarence Fernandez)

Exclusive: Not Made in America – Wal-Mart looks overseas for online vendors

FILE PHOTO: A Walmart store is seen in Encinitas, California, U.S. on April 13, 2016. REUTERS/Mike Blake/File Photo

By Nandita Bose

CHICAGO (Reuters) – Walmart.com, trailing Amazon.com Inc in the number of goods for sale on its website, is recruiting vendors in China and other countries to boost its online offerings in a pivot away from Wal-Mart’s Made-in-America campaign.

While there is a financial incentive behind the move, Wal-Mart’s decision comes out of necessity: not all the goods its customers want – ranging from jeans to bicycles to beauty products – are manufactured within the United States.

For graphic on price of patriotism click: http://tmsnrt.rs/2w39FKO

That reality pits Wal-Mart against President Donald Trump’s “Made in America” push. It also risks alienating some of Wal-Mart’s existing U.S. vendors since it runs counter to the American-made pledge the retailer made in 2013 in a bid to win customers, and satisfy unions and other critics who said its drive for low cost goods was undermining American jobs.

According to two sources with knowledge of the matter, Wal-Mart Stores Inc in February began inviting sellers from China, the United Kingdom and Canada to list on the marketplace section of Walmart.com, where it earns a share of revenue from goods sold and delivered to customers by third-party vendors.

Previously, it only allowed U.S. based sellers on the marketplace site, sources said.

Calling the unreported move a “measured approach,” Wal-Mart Vice-President of Partner Services Michael Trembley confirmed the invite-only program. He said foreign sellers currently make up less than five percent of its seller base.

Trembley said Wal-Mart’s move is focused on meeting customer demand for different types of products and increasing online assortment. Wal-Mart’s marketplace inventory has quintupled this year to 50 million items. That still pales in comparison to Amazon’s nearly 300 million products online, analysts said.

Shrinking that gap is key to Wal-Mart’s strategy to beat Amazon. Launched in 2009, the marketplace platform contributes more than 10 percent to Wal-Mart’s e-commerce revenue, but barely registers in total sales of nearly $486 billion, according to data from e-commerce analytics firm Marketplace Pulse. The data could not be independently verified by Reuters.

Amazon’s third-party marketplace, which also uses global vendors from countries like China, contributes to nearly half of Amazon’s retail sales, analysts said.

The move brings risks beyond the impact to Wal-Mart’s sales. Trump kicked off a “Made in America” week earlier this month where he promised he would take more legal and regulatory steps during the next six months to protect American manufacturers, lashing out against trade deals he said have hurt U.S. companies.

Trump’s comments come as the White House is seeking to renegotiate the 23-year-old North American Free Trade Agreement (NAFTA) in an effort to shrink the trade deficit with Canada and Mexico.

“No longer will we allow other countries to break the rules, steal our jobs and drain our wealth,” Trump said in a weekly address tweeted by the White House on July 21. “Instead we will follow two simple but very crucial rules: We will buy American and we will hire American.”

In a statement on Wednesday, Wal-Mart proposed policy actions to boost U.S. manufacturing which could help capture $300 billion worth of products that are imported. The retailer urged policymakers for simpler regulations on things like Made in USA labeling and modernize trade agreements.

Cindi Marsiglio, vice president for U.S. sourcing and manufacturing at Wal-Mart, told Reuters it is on target with its pledge to buy $250 billion worth of American-made products by 2023, and remains committed to boosting U.S. manufacturing.

“AGAINST THE SPIRIT OF THEIR ‘MADE IN AMERICA'”

Some of Wal-Mart’s existing U.S. vendors – whom Wal-Mart has recruited to supply goods manufactured domestically as part of its highly publicized Made-in-America sourcing plan – are on edge about competition with foreign goods.

“It goes against the spirit of their ‘Made in America’ push,” said one seller of American-made socks to Wal-Mart.com, who spoke on condition of anonymity for fear of hurting business relations with the retailer.

Six out of seven U.S. manufacturers Reuters spoke with who are selling to Walmart.com said they were disappointed with the retailer’s move. Marsiglio said the retailer had not heard any complaints about its move to allow global vendors on its marketplace.

“It’s bad timing to start such a program given President Trump’s push in this direction and the resources they (Wal-Mart) spend on promoting a patriotic image,” said another vendor, who sells pet products.

Darius Mir, chief executive of MIA (Made in America) Seating Corp, a Tennessee based seller of office furniture to Wal-Mart.com, said he supports free trade and is open to competition on the platform. But he thinks it would help U.S.-based vendors if Wal-Mart could label “Made in USA” items listed on its website.

“Walmart must distinguish between a ‘Made In USA’ product from all others by grouping the American made product separately, and highlighting the Made In USA label,” he said.

HOLLOWED-OUT MANUFACTURING

Wal-Mart’s third-party marketplace is part of an overall online initiative that is starting to show growth, with e-commerce sales growing 63 percent during the first quarter.

The progress has been led by e-commerce chief Marc Lore, who took over last year after Wal-Mart paid $3.3 billion for Jet.com, an online retail platform he founded.

Wal-Mart’s Trembley said the retailer’s approach to growing its marketplace, which analysts said has been slow, has been designed to avoid problems like counterfeit products, which is a challenge for rivals Amazon and Alibaba.

He said Wal-Mart vets sellers to the third party marketplace and has a high bar for selection.

The retailer has also put in place requirements for global vendors that could create U.S. jobs. For example, foreign sellers must be able to fulfill orders from a U.S.-based warehouse, they must use a U.S.-based return center and have customer support operating during U.S. business hours, Trembley said.

But finding U.S.-based suppliers remains a challenge. Beginning in the 1980s, Wal-Mart led a push to look overseas for inexpensive inventory, and the Made-in-America push—with its implied effort to rebuild a hollowed-out manufacturing base—has created more publicity than sales, retail consultants and analysts said.

Wal-Mart’s Marsiglio in an interview in April told Reuters that finding U.S.-based suppliers “remains one of the top challenges across our supplier base.”

This week she said one of the ways Wal-Mart is addressing that challenge is by working with existing suppliers and leveraging their manufacturing capacity to produce multiple items. For example, the retailer is working with a playing cards supplier who is now manufacturing plastic cutlery.

Wal-Mart had 10,249 sellers on its marketplace at the end of 2017’s first quarter, a substantial jump from 400 in the same period a year ago, according to data from Marketplace Pulse. This compares to millions of sellers on Amazon’s marketplace.

But few American consumers are willing to pay higher prices for American-made items. A Reuters Ipsos poll released on Thursday found 70 percent of Americans think it is important to buy U.S.-made products but 37 percent said they wouldn’t pay more for U.S.-made goods.

“This all boils down to one thing,” said Juozas Kaziukenas, founder and chief executive of Marketplace Pulse, the e-commerce analytics firm. “Wal-Mart’s marketplace has not been a success story, but with their renewed focus on e-commerce, they are trying to do everything they can to change that,” he said.

(Editing by David Greising and Edward Tobin)

Senate poised for healthcare showdown

Senate Majority Leader Mitch McConnell, accompanied by Senator John Cornyn (R-TX) and Senator John Barrasso (R-WY), speaks with reporters following the successful vote to open debate on a health care bill on Capitol Hill in Washington, U.S., July 25, 2017. REUTERS/Aaron P. Bernstein

By Amanda Becker and Yasmeen Abutaleb

WASHINGTON (Reuters) – U.S. Senate Republicans begin their final push on Thursday to unravel Obamacare, seeking to wrap up their seven-year offensive against former Democratic President Barack Obama’s signature healthcare law that extended insurance coverage to millions.

Republicans leaders hope a pared-down “skinny” bill that repeals several key Obamacare provisions can gain enough support to pass after several attempts at broader legislation failed to win approval earlier this week.

The skinny bill’s details will be released at some point on Thursday, before the Senate embarks on a marathon voting session that could extend into Friday morning. The legislation is expected to eliminate mandates requiring individuals and employers to obtain or provide health insurance, and abolish a tax on medical device manufacturers.

The effort comes after a chaotic two-month push by Senate Republicans to pass their version of legislation that made it out of the Republican-controlled House of Representatives in May.

Members of the party, including President Donald Trump, campaigned on a pledge to repeal and replace what they say is a failing law that allows the government to intrude in people’s healthcare decisions.

Republicans were optimistic about the skinny bill’s chances of receiving at least 50 votes in the Senate where they hold a 52-48 majority.

Senator John Cornyn, the chamber’s No. 2 Republican, said the bill, once approved, would go to a special negotiating committee of lawmakers from both chambers that would reconcile the House and Senate versions into a single piece of legislation.

Republican leaders had tapped a group to craft legislation largely behind closed doors, exposing rifts within the party. While conservatives said the group’s proposals did not go far enough, moderates said they could not support measures estimated to deprive tens of millions of health insurance.

The Senate voted 55-45 on Wednesday against a simple repeal of Obamacare, which would have provided a two-year delay so Congress could work out a replacement. Seven Republicans opposed the bill. On Tuesday, senators rejected the repeal-and-replace plan Republicans had been working on since May.

Senate Majority Leader Mitch McConnell can lose only two Republican votes to pass healthcare legislation. Even then, he would have to call on Vice President Mike Pence to cast a tie-breaking vote as head of the Senate. Democrats are united in opposition.

GOVERNORS SEEK INVOLVEMENT

A bipartisan group of 10 governors urged senators in a letter on Wednesday to start over and use a drafting process that includes governors from both parties. Governors of Nevada, Ohio, Louisiana, Pennsylvania and Colorado were among those who signed the letter, all of whose states have Republican senators.

The Congressional Budget Office, a nonpartisan research agency, estimated on Wednesday that a combination of provisions that might go into the skinny bill would lead to 16 million people losing their health coverage by 2026.

It had earlier estimated that the two other bills rejected by the Senate this week would have led to 22 million to 32 million people losing their health insurance by 2026.

Senate Democratic leader Chuck Schumer criticized Republican leaders for crafting a “yet-to-be-disclosed final bill” in secret.

“We don’t know if skinny repeal is going to be their final bill, but if it is, the CBO says it would cause costs to go up, and millions to lose insurance,” Schumer said on the Senate floor.

(Additional reporting by Susan Cornwell, Richard Cowan and David Morgan; Writing by Lisa Lambert; Editing by Peter Cooney)

Trump to nominate Kansas Governor Brownback as religious freedom ambassador

Trump picks Brownback for Religious Freedome Ambassador

WASHINGTON (Reuters) – U.S. President Donald Trump intends to nominate Republican Kansas Governor Sam Brownback as ambassador at large for international religious freedom, the White House said on Wednesday.

Brownback, who previously served in both the U.S. House of Representatives and Senate, would assume the position created in the State Department by the International Religious Freedom Act of 1998, of which he was one of the key sponsors.

In 2015, Brownback issued an executive order protecting the religious freedom of clergy and organizations that opposed same-sex marriage as Kansas began to comply with the landmark ruling by the U.S. Supreme Court legalizing gay marriage.

“We … recognize that religious liberty is at the heart of who we are as Kansans and Americans, and should be protected,” Brownback, governor since 2011, said at the time of the order. He was re-elected in 2014 and is not eligible to serve a third consecutive term.

(Reporting by Washington Newsroom; Editing by Peter Cooney)

U.S. sanctions Venezuelan officials, one killed in anti-Maduro strike

Demonstrators use a tire on fire to block a street at a rally during a strike called to protest against Venezuelan President Nicolas Maduro's government in Caracas, Venezuela July 26, 2017. REUTERS/Andres Martinez Casares

By Matt Spetalnick and Alexandra Ulmer

WASHINGTON/CARACAS, Venezuela (Reuters) – The Trump administration imposed sanctions on 13 senior Venezuelan officials as the country’s opposition launched a two-day strike on Wednesday, heaping pressure on unpopular President Nicolas Maduro to scrap plans for a controversial new congress.

With clashes breaking out in some areas, a 30-year-old man was killed during a protest in the mountainous state of Merida, authorities said.

Venezuela’s long-time ideological foe the United States opted to sanction the country’s army and police chiefs, the national director of elections, and a vice president of the state oil company Petróleos de Venezuela S.A. (PDVSA) for alleged corruption and rights abuses.

U.S. President Donald Trump spared Venezuela for now from broader sanctions against its vital oil industry, but such actions were still under consideration.

U.S. officials said the individual sanctions aimed to show Maduro that Washington would make good on a threat of “strong and swift economic actions” if he goes ahead with a vote on Sunday that critics have said would cement dictatorship in the OPEC country.

The leftist leader was also feeling the heat at home, where protesters backing the 48-hour national strike blocked roads with makeshift barricades and many stores remained shut for the day.

“It’s the only way to show we are not with Maduro. They are few, but they have the weapons and the money,” said decorator Cletsi Xavier, 45, helping block the entrance to a freeway in upscale east Caracas with rope and iron metal sheets.

The opposition estimated that some 92 percent of businesses and workers adhered to the strike, although it offered no evidence for the figure. Overall, fewer people appeared to be heeding the shutdown than the millions who participated in a 24-hour strike last week when five people died in clashes.

State enterprises, including PDVSA [PDVSA.UL], stayed open and some working-class neighborhoods buzzed with activity. But hooded youths clashed with soldiers firing tear gas in various places including Caracas.

In western Merida state, Rafael Vergara was shot dead when troops and armed civilians confronted protesters, local opposition lawmaker Lawrence Castro told Reuters.

Local rights group Penal Forum said 50 people had been arrested and opposition lawmakers said at least 4 protesters had been shot.

A demonstrator wears a Venezuelan flag during a strike called to protest against Venezuelan President Nicolas Maduro's government in Caracas, Venezuela July 26, 2017. REUTERS/Marco Bello

A demonstrator wears a Venezuelan flag during a strike called to protest against Venezuelan President Nicolas Maduro’s government in Caracas, Venezuela July 26, 2017. REUTERS/Marco Bello

‘IMPERIALIST SANCTIONS’

Maduro has vowed to push ahead with Sunday’s vote for a Constituent Assembly, which will have power to rewrite the constitution and override the current opposition-led legislature.

The successor to late socialist leader Hugo Chavez says it will bring peace to Venezuela after four months of anti-government protests in which more than 100 people have been killed.

One of the U.S. officials warned the sanctions were just an initial round and the administration was readying tougher measures. The most serious option is financial sanctions that would halt dollar payments for the country’s oil or a total ban on oil imports to the United States, a top cash-paying client.

But policy makers continue to weigh the potential risks of such sanctions, which include inflicting further suffering on Venezuelans and raising U.S. domestic gasoline prices.

Even some of Maduro’s opponents have cautioned that he could rally his supporters under a nationalist banner if the United States goes too far on sanctions as Venezuelans endure a brutal economic crisis with shortages of food and medicine.

At a campaign-style rally for Sunday’s vote, broadcast on state TV late on Wednesday, a defiant Maduro presented some of those sanctioned with replicas of a sword belonging to Latin American independence hero Simon Bolivar.

“Congratulations for these imperialist sanctions,” he said, before handing out the symbolic swords. “What makes the imperialists of the United States think they are the world government?”

Among those sanctioned were national elections director Tibisay Lucena, PDVSA finance vice president Simon Zerpa, former PDVSA executive Erik Malpica, and prominent former minister Iris Varela.

Varela tweeted a picture of herself grinning and extending a middle finger toward the camera with a message that read: “This is my response to the gringos, like Chavez told them, ‘Go to hell, you piece of shit Yankees.'”

Elections boss Lucena is scorned by opposition activists, who have said that she has delayed regional elections and blocked a recall referendum against Maduro at the behest of an autocratic government. The opposition has also long accused PDVSA of being a nest of corruption.

A demonstrator gestures while clashing with riot security force at a rally during a strike called to protest against Venezuelan President Nicolas Maduro's government in Caracas, Venezuela July 26, 2017. REUTERS/Carlos Garcia Rawlins

A demonstrator gestures while clashing with riot security force at a rally during a strike called to protest against Venezuelan President Nicolas Maduro’s government in Caracas, Venezuela July 26, 2017. REUTERS/Carlos Garcia Rawlins

‘BAD ACTORS’

The U.S. officials, who spoke to Reuters on condition of anonymity, said the individuals targeted for sanctions were accused of supporting Maduro’s crackdown, harming democratic institutions or victimizing Venezuelans through corruption, and that additional “bad actors” could be sanctioned later.

Punitive measures include freezing U.S. assets, banning travel to the United States and prohibiting Americans from doing business with them.

Sanctions were imposed on the chief judge and seven other members of Venezuela’s pro-Maduro Supreme Court in May in response to their decision to annul the opposition-led Congress earlier this year.

That followed similar U.S. sanctions in February against Venezuela’s influential Vice President Tareck El Aissami for alleged links to drug trafficking.

Assets in the United States and elsewhere tied to El Aissami and an alleged associate and frozen by U.S. order now total hundreds of millions of dollars, far more than was expected, one of the U.S. officials told Reuters.

(Additional reporting by Andrew Cawthorne, Corina Pons, Andreina Aponte, Anggy Polanco, Girish Gupta, and Fabian Cambero in Caracas, Francisco Aguilar in Barinas, Maria Ramirez in Puerto Ordaz, Mircely Guanipa in Punto Fijo, Isaac Urrutia in Maracaibo, Patricia Zengerle in Washington; Writing by Alexandra Ulmer and Matt Spetalnick; Editing by Andrew Cawthorne, Tom Brown, Toni Reinhold)

House approves new Russia sanctions, defying Trump

A rainbow shines over the U.S. Capitol in Washington, U.S. July 24, 2017. REUTERS/Joshua Roberts

By Patricia Zengerle and Amanda Becker

WASHINGTON (Reuters) – The U.S. House of Representatives voted overwhelmingly on Tuesday to slap new sanctions on Russia and force President Donald Trump to obtain lawmakers’ permission before easing any sanctions on Moscow, in a rare rebuke of the Republican president.

It was unclear how quickly the bill would make its way to the White House for Trump to sign into law or veto. The bill still must be passed by the Senate, which is mired in debate over efforts to overhaul the U.S. healthcare system as lawmakers try to clear the decks to leave Washington for their summer recess.

The sanctions bill comes as lawmakers investigate possible meddling by Russia in the 2016 presidential election and potential collusion by Republican Trump’s campaign.

Moscow has denied it worked to influence the election in Trump’s favor, and he has denied his campaign colluded.

The White House said the president had not yet decided whether he would sign the measure. Rejecting the bill – which would potentially hamper his hopes of pursuing improved relations with Moscow – would carry a risk that his veto could be overridden by lawmakers.

“While the president supports tough sanctions on North Korea, Iran and Russia, the White House is reviewing the House legislation and awaits a final legislative package for the president’s desk,” said spokeswoman Sarah Sanders.

House members backed the bill, which also imposes sanctions on Iran and North Korea, by a near-unanimous margin of 419-3, with strong support from Trump’s fellow Republicans as well as Democrats, despite objections from Trump, who wanted more control over the ability to impose sanctions.

The Republican-controlled Senate passed an earlier version of the bill with near-unanimous support. The House added the North Korea measures after becoming frustrated with the Senate’s failure to advance a bill it passed in May.

Representative Ed Royce, the Republican chairman of the House Foreign Affairs Committee, said the three countries “are threatening vital U.S. interests and destabilizing their neighbors. It is well past time that we forcefully respond.”

But the combined bill has run into objections from some senators, who are unhappy that the House added the North Korea sanctions after holding up the measure for more than a month.

Senate leaders have not said when they might consider the House bill. Senator Bob Corker, the Republican chairman of the Senate Foreign Relations Committee, said he was not sure the bill would “fly through” his chamber.

“The only language we agreed to was Iran and Russia. So adding North Korea on, I just don’t know how we’re going to deal with it yet,” Corker told reporters. “The better route would have been to send over what had been agreed to.”

The bill had raised concerns in the European Union, where U.S. allies depend on supplies of Russian gas. But House members said the bill was tweaked to try to alleviate the worries of Europeans and the energy sector.

INVESTIGATIONS

The intense focus on Russia, involving several congressional probes and a separate investigation by a Justice Department-appointed special counsel, Robert Mueller, has overshadowed Trump’s agenda.

The scrutiny has angered and frustrated the president, who calls the investigations a politically motivated witch hunt fueled by Democrats who cannot accept his upset win in last November’s election against Democratic candidate Hillary Clinton, a former U.S. secretary of state.

Without offering evidence, Trump lashed out on Twitter on Tuesday about “Ukrainian efforts to sabotage” his presidential campaign in order to aid Clinton. The Ukrainian embassy in Washington denied the accusations.

The Senate Judiciary Committee had been set to compel Trump’s former campaign manager, Paul Manafort, to testify at a hearing on Wednesday, but rescinded the subpoena late on Tuesday as negotiations over his participation continued.

Manafort has started turning over documents to the committee and is negotiating a date to be interviewed, the panel said in a statement.

The committee is looking at a June 2016 meeting in New York with a Russian lawyer organized by Trump’s eldest son, Donald Trump Jr. Trump Jr. released emails this month that showed he welcomed the prospect of receiving damaging information at the meeting about Clinton.

On Friday, the panel had asked that Manafort and Trump Jr. appear at the Wednesday hearing, but a witness list released on Tuesday evening included neither of their names.

Manafort met with Senate Intelligence Committee staff on Tuesday morning, his spokesman said.

On Tuesday, Trump’s son-in-law, Jared Kushner, spent three hours with the House of Representatives intelligence panel, his second straight day on Capitol Hill answering questions about his contacts with Russians during the campaign.

Kushner had a “very productive session” with the House Intelligence Committee, Democratic Representative Adam Schiff said after the meeting.

Republican Representative Michael Conaway said Kushner was “straightforward and forthcoming. He wanted to answer every question that we had.”

Kushner, who is now a top aide in Trump’s White House, told reporters on Monday he had no part in any Kremlin plot..

U.S. House Republicans on Tuesday rejected a legislative effort by Democrats to obtain Treasury Department documents that could show any ties between the finances of Trump, his inner circle and the Russian government.

(Reporting by Patricia Zengerle and Amanda Becker; Additional reporting by Doina Chiacu, Steve Holland, Susan Cornwell, Susan Heavey and Karen Friefeld; Writing by Roberta Rampton; Editing by Grant McCool and Peter Cooney)

Rouhani says Iran will respond to any new U.S. sanctions

FILE PHOTO: Iran's national flags are seen on a square in Tehran February 10, 2012. REUTERS/Morteza Nikoubazl/File Photo

BEIRUT (Reuters) – Iran will reciprocate if the United States imposes new sanctions on it, president Hassan Rouhani said on Wednesday according to state media, casting further doubt over the outlook for the 2015 Iran nuclear accord.

The U.S. House of Representatives voted on Tuesday to slap new sanctions on Iran, Russia and North Korea, although it was unclear how quickly the bill would make its way to the White House for President Donald Trump to sign into law or veto.

State media quoted Rouhani as citing a verse from the Koran saying: “If the enemy puts part of their promises underfoot then we will also put part of it underfoot. And if they put all of their promises underfoot then we will put promises underfoot.”

But he added: “The Koran also advises that if enemies are really pursuing peace and want to put enmity aside and act appropriately toward you, then you should do the same.”

He said that parliament would take the initial steps in responding to any U.S. moves and that any necessary further steps would also be pursued.

On Tuesday, Trump issued a veiled threat against Iran, warning it to adhere to the terms of the 2015 nuclear deal it signed together with world powers or else face “big, big problems.”

A week after certifying Iran as complying with the agreement negotiated by Democratic President Barack Obama, Trump has made it clear that he remains extremely wary of Tehran.

The Iranian side appears equally wary of Washington, with a senior Revolutionary Guards commander issuing a similar threat in return on Wednesday.

“The Trump government, more than before, should be cautious and precise with their military approach in the Islamic revolution environment,” Brigadier General Masoud Jazayeri, deputy chief of staff of Iran’s armed forces was quoted by the Tasnim news site as saying on Wednesday.

“We will confront any American mischief with a response that will make them sorry,” he said.

The head of the Guards was quoted as saying last week that Washington should move its bases and avoid “miscalculations” over new sanctions against Tehran. The United States has bases in Qatar and Kuwait across the Gulf from Iran, while the U.S. Fifth Fleet is based in nearby Bahrain.

(Reporting by Babak Dehghanpisheh; Editing by Hugh Lawson)