Trump signs tax, government spending bills into law

U.S. President Donald Trump sits at his desk before signing tax overhaul legislation in the Oval Office of the White House in Washington, U.S., December 22, 2017.

By Susan Heavey and Lisa Lambert

WASHINGTON (Reuters) – U.S. President Donald Trump signed Republicans’ massive $1.5 trillion tax overhaul into law on Friday, cementing the biggest legislative victory of his first year in office, and also approved a short-term spending bill that averts a possible government shutdown.

Trump said he wanted to sign the tax bill before leaving Washington on Friday for his Mar-a-Lago estate in Florida, rather than stage a more formal ceremony in January, so he could keep his promise to finish work before Christmas.

“I didn’t want you folks to say I wasn’t keeping my promise. I’m keeping my promise,” he told reporters in the White House.

The two pieces of legislation represent Trump’s most significant accomplishment with Congress since taking office in January, as well as a sign of what awaits when he returns from Florida after the Christmas holiday.

The tax package, the largest such overhaul since the 1980s, slashes the corporate rate from 35 percent to 21 percent and temporarily reduces the tax burden for most individuals as well.

Trump praised several companies that have announced employee bonuses in the wake of the bill’s passage, naming AT&T, Boeing, Wells Fargo, Comcast and Sinclair Broadcast Group.

“Corporations are literally going wild over this,” he said.

Democrats had opposed the bill as a giveaway to the wealthy that would add $1.5 trillion to the $20 trillion national debt during the next decade.

The spending bill extends federal funding through Jan. 19, largely at current levels. It does nothing to resolve broader disputes over immigration, healthcare and military spending.

Republicans also are divided over whether to follow up their sweeping overhaul of the U.S. tax code with a dramatic restructuring of federal benefit programs.

House Speaker Paul Ryan has said he would like to revamp welfare and health programs but Senate Republican Leader Mitch McConnell told National Public Radio on Monday that he was not interested in cutting those programs without Democratic support.

Trump’s year also closes with significant turnover of many top staffers who had been in the White House since early in his term. On Friday, the White House confirmed Deputy Chief of Staff Rick Dearborn and Jeremy Katz, who worked under White House economic adviser Gary Cohn, were leaving.

(Additional reporting by Makini Brice; Writing by Andy Sullivan; Editing by Bill Trott)

Trump Cabinet officials to visit Puerto Rico to assess recovery

Trump Cabinet officials to visit Puerto Rico to assess recovery

By Roberta Rampton

WASHINGTON (Reuters) – Two members of President Donald Trump’s Cabinet are set to visit Puerto Rico on Tuesday to assess the U.S. territory’s rebuilding in the three months since Hurricane Maria devastated homes, businesses and the power grid.

Homeland Security Secretary Kirstjen Nielsen and Housing and Urban Development Secretary Ben Carson will travel to Puerto Rico, where about a third of the island’s 3.4 million residents are still without power, hundreds remain in shelters, and thousands have fled to the U.S. mainland.

The visit comes as Republicans in the U.S. House of Representatives on Monday were planning to unveil a disaster aid package totaling $81 billion, according to a senior congressional aide. Some of that aid would go to Puerto Rico, but also to states like Texas and Florida that were hit by other hurricanes and to California, which is grappling with wild fires.

Even before Maria savaged Puerto Rico, the island was contending with $72 billion in debt. Puerto Rican Governor Ricardo Rossello has asked the federal government for a total of $94.4 billion in aid, including $31.1 billion for housing and $17.8 billion to rebuild its ruined power grid.

The Federal Emergency Management Agency (FEMA) has so far approved more than $660 million in aid for individuals in Puerto Rico as well as more than $450 million in public assistance.

Nielsen and Carson will receive detailed briefings on rebuilding efforts and see how federal aid is helping residents to recover, a DHS official said.

Nielsen, who oversees FEMA, and Rossello are slated to hold a news conference.

The visit comes as Congress prepares to vote on a tax overhaul bill that Puerto Rican officials have said they fear will hurt the commonwealth’s pharmaceutical manufacturing sector – the cornerstone of the island’s economy – at a time when Puerto Rico can least afford to lose jobs and tax revenue.

Puerto Rico’s government has said 64 people died because of the hurricane, but after multiple media estimates of dramatically higher figures, Rossello on Monday ordered an official review of the death toll.

(Reporting by Roberta Rampton; Editing by Leslie Adler)

Trump to make final tax push as Republican negotiators near deal

Trump to make final tax push as Republican negotiators near deal

By Amanda Becker and Steve Holland

WASHINGTON (Reuters) – U.S. President Donald Trump will make a final push on Wednesday to shepherd a Republican tax overhaul across the finish line, hosting congressional negotiators for lunch before a speech in which he will make closing arguments for the legislation.

Republican tax writers from the Senate and House of Representatives worked into Tuesday evening to reconcile differences between the separate plans passed by each chamber, as important details, including a final corporate tax rate, remained in flux.

Republican leaders are aiming to vote on the sweeping legislation before Christmas. That timetable became more crucial after Tuesday’s upset win by Democrat Doug Jones over Republican Roy Moore in Alabama’s special U.S. Senate election.

Jones’ victory trims the Republicans’ already narrow Senate majority to 51-49, which could make it more difficult for them to push through legislation.

Senate Democratic Leader Chuck Schumer on Wednesday will call on Republicans to delay the tax vote until the newest senator can be seated, likely in early January.

Republicans were still trying to finalize important details without increasing the deficit impact of legislation, which could add as much as $1.5 trillion to the national debt over the next decade, according to independent estimates.

Both House and Senate bills proposed slashing the corporate rate to 20 percent from 35 percent, but negotiators were discussing on Tuesday whether to raise that rate to 21 percent in the final bill, lawmakers said.

Tax writers were also still determining a top rate for individual taxpayers and weighing how to best scale back popular individual deductions for mortgage interest and local tax payments that the Senate and House bills treated differently.

“We’re still talking,” No. 2 Senate Republican John Cornyn said late Tuesday of a possible 21 percent corporate rate.

Trump is seeking to sign a tax bill by the end of the year to achieve Republicans’ first major legislative victory since they took control of both chambers of Congress and the White House in January.

After hosting Republican lawmakers for lunch, Trump will deliver his speech on tax legislation alongside five middle class families who would benefit, senior administration officials said.

He was expected to counter claims the Republican tax plan would largely benefit corporations and the wealthy by highlighting how it would also cut rates for lower- and middle-income taxpayers, who could see additional benefits, such as higher wages, result from the corporate rate cut, the officials said.

Independent government analyses by the nonpartisan Joint Committee on Taxation, which assists congressional tax writers, and the Congressional Budget Office, which examines the budget impact of legislation, both concluded that wealthier taxpayers would disproportionately benefit from the Republican proposals.

When asked who stands to benefit most from Republican tax legislation, more than half of American adults selected either the wealthy or large U.S. corporations, according to a Reuters/Ipsos poll released on Monday.

(Additional reporting by Susan Cornwell, Richard Cowan, Doina Chiacu; Editing by Cynthia Osterman and Steve Orlofsky)

Democrat Jones wins U.S. Senate seat in Alabama in blow to Trump

Democrat Jones wins U.S. Senate seat in Alabama in blow to Trump

By Rich McKay

BIRMINGHAM, Ala. (Reuters) – Democrat Doug Jones won a bitter fight for a U.S. Senate seat in deeply conservative Alabama on Tuesday, dealing a political blow to President Donald Trump in a race defined by sexual misconduct accusations against Republican candidate Roy Moore.

The stunning upset makes Jones the first Democrat elected to the U.S. Senate from Alabama in a quarter-century and will trim the Republicans’ already narrow Senate majority to 51-49, opening the door for Democrats to possibly retake the chamber in next year’s congressional elections.

Jones, who cast himself on the campaign trail as the candidate who could reach across the aisle and get things done in Washington, is expected to take office early in January, after the results are certified.

His election was not expected to affect pending votes in Congress on funding the government or overhauling the U.S. tax code, as Republican congressional leaders have vowed action on those bills before Christmas.

With 99 percent of the vote counted, Jones led by 1.5 percentage points over Moore, who refused to concede.

Alabama Secretary of State John Merrill said it was “highly unlikely” the outcome would change. “The people of Alabama have spoken,” he told CNN.

The ugly campaign drew national attention and split the Republican Party following accusations by several women that Moore sexually assaulted or pursued them when they were teens and he was in his 30s.

Moore, 70, a Christian conservative twice removed from the state Supreme Court in Alabama for ignoring federal law, denied the allegations and said he did not know any of the women involved.

Trump endorsed Moore even as other party leaders in Washington walked away. Jones, 63, a former federal prosecutor, portrayed the campaign as a referendum on decency and promised the state’s voters he would not embarrass them in Washington.

“I have always believed that the people of Alabama have more in common than divides us,” Jones told cheering supporters at his Birmingham victory party.

Trump, who congratulated Jones in a tweet late Tuesday night, on Wednesday tried to cast the win in a different light.

The president had joined establishment Republicans in the primary by backing Luther Strange, who filled the seat when Jeff Sessions left to serve as Trump’s attorney general. After Moore won the Republican nomination, Trump wholeheartedly endorsed Moore.

“The reason I originally endorsed Luther Strange (and his numbers went up mightily), is that I said Roy Moore will not be able to win the General Election. I was right! Roy worked hard but the deck was stacked against him!” Trump said on Twitter.

Network exit polls, however, showed Trump was not a factor in the decision for about half of Alabama voters.

“It had zero to do with Donald Trump,” Republican U.S. Representative Bradley Byrne of Alabama told MSNBC on Wednesday. The race was “a purely weird, unique election” not a harbinger of the 2018 midterm elections.

But U.S. Senator Chris Van Hollen, who heads the Democratic Senatorial Campaign Committee, called the victory in one of the most conservative states in the nation “a political earthquake.”

“You see voters who are fed up, and they want to send the message that they don’t like Trumpism,” Van Hollen said on MSNBC on Wednesday. “This was a big rejection of the ugly, divisive politics that Donald Trump has brought to the country.”

Former President Barack Obama, a Democrat, recorded robo-calls for Jones to help turn out African-Americans, who, according to network exit polls, constituted about 30 percent of those voting on Tuesday.

As a U.S. attorney Jones helped win the convictions in 2001 and 2002 of members of the Ku Klux Klan for the 1963 bombing of a Birmingham church that killed four little girls.

The sexual misconduct allegations against Moore came at a time when many powerful men, including Trump, have faced similar accusations.

John Laine, 65, a retired book editor from Birmingham who backed Jones, said he thought many Republicans crossed over and voted for a Democrat for the first time in their lives.

“The reason is that people just couldn’t stomach any more of Roy Moore,” he said.

(Additional reporting by Andy Sullivan in Montgomery, Ala.; Writing by John Whitesides; Editing by Richard Balmforth and Jeffrey Benkoe)

Trump’s eldest son faces questions in Congress about Russia

Trump's eldest son faces questions in Congress about Russia

By Patricia Zengerle

WASHINGTON (Reuters) – President Donald Trump’s eldest son, Donald Trump Jr., returned to Congress on Wednesday to face questions from lawmakers about alleged Russian efforts to influence the 2016 U.S. election and possible collusion with Moscow by his father’s presidential campaign.

Trump arrived shortly before 10 a.m. EST (1500 GMT) for what was expected to be several hours of questioning by members of the House of Representatives Intelligence Committee, one of three main congressional committees investigating the matter.

Department of Justice Special Counsel Robert Mueller is also conducting a broad investigation of the matter. He has announced the first indictments of Trump associates, and President Trump’s former national security adviser, Michael Flynn, has pleaded guilty to lying to Federal Bureau of Investigation agents.

Trump Jr.’s appearance on Wednesday came amid mounting criticism of the Russia probes by some of his father’s fellow Republicans in Congress, who accuse investigators of bias against Trump.

The committee meeting was conducted behind closed doors, and Trump Jr. was not seen by reporters waiting outside the meeting room, although congressional officials confirmed he had arrived.

The younger Trump testified to the Senate Judiciary Committee in September. The Senate Intelligence Committee has also said it wants to talk to him.

Lawmakers said they want to question him about a meeting with a Russian lawyer in June 2016 at Trump Tower in New York at which he had said he hoped to get information about the “fitness, character and qualifications” of former Secretary of State Hillary Clinton, the Democrat his father defeated in last year’s race for the White House.

Trump Jr., like his father, denies collusion with Russia. U.S. intelligence agencies concluded that Russia attempted to influence the 2016 campaign to boost Trump’s chances of defeating Clinton. Moscow denies any such effort.

Some of Trump’s fellow Republicans criticized Mueller, the FBI and the Department of Justice at a news conference on Wednesday, ahead of congressional testimony on Thursday by the director of the FBI, Christopher Wray.

The Republican House members accused Justice, the FBI and Mueller of being biased against President Trump and having been too easy on Clinton during the investigation of her use of a private email server while leading the State Department.

While the Republicans have complained about the FBI, Clinton has made no secret of her belief that then-FBI Director James Comey’s announcement, shortly before the election, that the bureau was investigating potential new evidence in the lengthy email probe helped cost her the White House.

Republican Representative Matt Gaetz accused investigators of “unprecedented bias” against the president over the Russia matter, compared with their treatment of Clinton.

Republican Representative Jim Jordan told the news conference that investigators have “two standards of justice.”

Trump and some of his closest Republican allies in Congress, have frequently criticized the Justice Department, arguing that it has focused too many resources on the Russia investigation while neglecting conservative concerns.

Separately on Wednesday, Representative Bob Goodlatte, the Republican chairman of the House Judiciary Committee, which oversees the Department of Justice, announced a hearing next week with Deputy Attorney General Rod Rosenstein, citing “serious concerns” about reports on the political motives of staff on Mueller’s team.

And Republican Senate Judiciary Chairman Chuck Grassley said he was asking the FBI for documents relating to the activities of FBI agent Peter Strzok after reports the agent had shown political bias while handling matters in both the Clinton and Trump investigations.

Republicans control majorities in both the House and Senate.

Other lawmakers, Republicans as well as Democrats, say the goal of their investigation is to guarantee the integrity of U.S. elections, not to target Trump and his associates.

(Reporting by Patricia Zengerle; Editing by Jonathan Oatis)

Palestinians seethe at Trump’s ‘insane’ Jerusalem move

Palestinians seethe at Trump's 'insane' Jerusalem move

By Ali Sawafta

JERUSALEM (Reuters) – Palestinians seethed with anger and a sense of betrayal over U.S. President Donald Trump’s decision to recognize the disputed city of Jerusalem as the capital of Israel.

Many heard the death knell for the long-moribund U.S.-sponsored talks aimed at ending the Israeli-Palestinian conflict and establishing a Palestinian state alongside Israel. They also said more violence could erupt.

“Trump wants to help Israel take over the entire city. Some people may do nothing, but others are ready to fight for Jerusalem,” said Hamad Abu Sbeih, 28, an unemployed resident of the walled Old City.

“This decision will ignite a fire in the region. Pressure leads to explosions,” he said.

Jerusalem — specifically its eastern Old City, home to important shrines of Judaism, Christianity and Islam — is at the heart of the Israeli-Palestinian conflict.

Israeli captured Arab East Jerusalem from Jordan in the 1967 Middle East War then later annexed it in a move not recognized internationally. Palestinians want it to be the capital of a future independent state and resolution of its status is fundamental to any peace-making.

Trump is due to announce later on Wednesday that the United States recognizes the city as Israel’s capital and will move its embassy there from Tel Aviv, breaking with longtime policy..

“This is insane. You are speaking about something fateful. Jerusalem is the capital of the state of Palestine and neither the world nor our people will accept it,” said Samir Al-Asmar, 58, a merchant from the Old City who was a child when it fell to Israel.

“It will not change what Jerusalem is. Jerusalem will remain Arab. Such a decision will sabotage things and people will not accept it.”

Palestinian newspapers also decried the move.

“Trump Defies the World,” thundered Al-Ayyam. Another, Al-Hayat, roared “Jerusalem is the Symbol of Palestinian Endurance” in a red-letter headline over an image of the city’s mosque compound flanked by Palestinian flags.

Palestinian leaders have also warned the move could have dangerous consequences. Although winter rains dampened protests called for East Jerusalem, the occupied West Bank and Hamas-dominated Gaza Strip, few doubted fresh bloodshed now loomed.

Israeli security forces braced for possible unrest but police said the situation in Jerusalem was calm for now.

That could quickly change, given the religious passions that swirl around the Old City, where Al Aqsa Mosque, Islam’s third-holiest shrine, abuts the Western Wall prayer plaza, a vestige of two ancient Jewish temples.

Palestinians mounted two uprisings, or intifadas, against Israeli occupation from 1987 to 1993 then from 2000 to 2005, the latter ignited by a visit by then-opposition leader Ariel Sharon to the shrine area, known to Jews as Temple Mount.

Violent confrontations also took place in July when Israel installed metal detectors at an entrance to Al-Aqsa compound after Arab gunmen holed up there killed two of its policemen. Four Palestinians and three Israelis died in ensuing violence.

ANGRY IN GAZA

In the Palestinian coastal enclave of Gaza, demonstrators chanted “Death to America”, “Death to Israel” and “Down with Trump”. They also burned posters depicting the U.S., British and Israeli flags.

Youssef Mohammad, a 70-year-old resident of a refugee camp, said Trump’s move would be a test for Arab leadership at a time of regional chaos and shifting alliances.

“Let him do it. Let’s see what Arab rulers and kings will do. They will do nothing because they are cowards,” the father of eight said.

The Jerusalem uproar could affect Egyptian-brokered efforts to bring Gaza, which has been under Islamist Hamas control for a decade, back under the authority of U.S.-backed Palestinian President Mahmoud Abbas, who favors negotiation with Israel.

Hamas spokesman Hazem Qassem said Trump’s planned moved showed the United States was biased.

“The United States was never a neutral mediator in any cause of our people. It has always stood with the occupation (Israel),” he said.

He said Abbas’ administration should “rid itself of the illusion that rights can be achieved through an American-backed deal”.

(Corrects Ariel Sharon’s title to opposition leader)

(Additional reporting by Nidal al-Mughrabi in Gaza, Editing by Ori Lewis and Angus MacSwan)

Trump likely to recognize Jerusalem as Israel’s capital next week: official

Trump likely to recognize Jerusalem as Israel's capital next week: official

By Steve Holland and Matt Spetalnick

WASHINGTON (Reuters) – President Donald Trump is likely to announce next week that the United States recognizes Jerusalem as Israel’s capital, a senior administration official said on Friday, a move that would upend decades of American policy and possibly inflame tensions in the Middle East.

Trump could make the controversial declaration in a speech on Wednesday though he is also expected to again delay his campaign promise to move the U.S. embassy to Jerusalem from Tel Aviv. The senior official and two other government sources said final decisions had not yet been made.

The Palestinians want Jerusalem as the capital of their future state, and the international community does not recognize Israel’s claim on all of the city, home to sites holy to the Jewish, Muslim and Christian religions.

Word of Trump’s planned announcement, which would deviate from previous U.S. presidents who have insisted the Jerusalem’s status must be decided in negotiations, drew criticism from the Palestinian Authority and was sure to anger the broader Arab world.

It could also unravel the U.S. administration’s fledgling diplomatic effort, led by Trump’s son-in-law and senior adviser Jared Kushner, to restart long-stalled Israeli-Palestinian peace talks and enlist the support of U.S. Arab allies.

Nabil Abu Rdainah, spokesman for Palestinian President Mahmoud Abbas, said U.S. recognition of Jerusalem as Israel’s capital would “destroy the peace process” and “destabilize the region.”

Such a move, however, could help satisfy the pro-Israel, right-wing base that helped Trump win the presidency and also please the Israeli government, a close U.S. ally.

The senior U.S. official, speaking on condition of anonymity, said details were still being finalized and could still change.

Another U.S. official said Trump appeared to be heading toward recognizing Israel’s claim to Jerusalem but that it was not a done deal.

“We’ve nothing to announce,” said a spokesperson with the White House National Security Council.

INTERNAL DELIBERATIONS

Trump’s impending decisions on Jerusalem, one of the most sensitive core issues of the Israeli-Palestinian conflict, follow intense internal deliberations in which the president has personally weighed in, one White House aide said.

Trump is likely to continue his predecessors’ practice of signing a six-month waiver overriding a 1995 law requiring that the U.S. embassy be moved from Tel Aviv to Jerusalem, two officials told Reuters on Thursday.

But seeking to temper his supporters’ concerns, another option under consideration is for Trump to order his aides to develop a longer-term plan for the embassy’s relocation to make clear his intent to do so eventually, the officials said.

It was unclear, however, whether any public recognition by Trump of Israel’s claim on Jerusalem would be formally enshrined in a presidential action or be more of a symbolic statement.

Trump pledged on the presidential campaign trail last year that he would move the embassy from Tel Aviv to Jerusalem.

But in June, Trump waived the requirement, saying he wanted to “maximize the chances” for a new U.S.-led push for what he has called the “ultimate deal” of Israeli-Palestinian peace. Those efforts have made little, if any, progress so far and many experts are skeptical of the prospects for success.

The status of Jerusalem is one of the major stumbling blocks in achieving peace between Israel and the Palestinians.

Israel captured Arab East Jerusalem during the 1967 Middle East war and later annexed it, a move not recognized internationally.

Arab governments and Western allies have long urged Trump not to proceed with the embassy relocation, which would reverse long-standing U.S. policy by granting de facto U.S. recognition of Israel’s claim to all of Jerusalem as its capital.

Visiting Washington this week, Jordan’s King Abdullah warned lawmakers that moving the U.S. embassy could be “exploited by terrorists to stoke anger, frustration and desperation,” according to the Jordanian state news agency Petra.

Some of Trump’s top aides have privately pushed for him to keep his campaign promise to satisfy a range of supporters, including evangelical Christians, while others have cautioned about the potential damage to U.S. relations with Muslim countries.

(Additional reporting by Arshad Mohammed in Washington, Dan Williams in Jerusalem and Nidal al-Mughrabi in Gaza; Writing by Matt Spetalnick; Editing by Chizu Nomiyama and Richard Chang)

Democrats skip Trump meeting, raising risk of government shutdown

Democrats skip Trump meeting, raising risk of government shutdown

By Steve Holland

WASHINGTON (Reuters) – Democratic leaders in Congress skipped a meeting with President Donald Trump on Tuesday that was to have focused on the budget, raising the risk of a government shutdown next month with both sides far apart on the terms of an agreement.

After Chuck Schumer and Nancy Pelosi informed Trump they would not attend the meeting at the White House, the president and Republican congressional leaders went ahead with the talks without them.

Trump left empty seats on either side of him, with name cards for Schumer, the Senate Democratic leader, and Pelosi, the top Democrat in the House of Representatives. He also criticized them as the cameras rolled during a picture-taking session.

“We have a lot of differences,” Trump said. “So they’ve decided not to show up. They’ve been all talk and they’ve been no action and now it’s even worse. Now it’s not even talk.”

Schumer and Pelosi said they pulled out of the meeting because of a tweet Trump sent earlier in the day attacking them as weak on illegal immigration and bent on raising taxes.

“I don’t see a deal!” the Republican president wrote on Twitter.

Pelosi tweeted after Trump’s White House session that “his empty chair photo opp showed he’s more interested in stunts than in addressing the needs of the American people. Poor Ryan and McConnell relegated to props. Sad!” she added, referring to Senate Majority Leader Mitch McConnell and House Speaker Paul Ryan,

Trump said he would “absolutely blame the Democrats” if a government shutdown takes place.

A Dec. 8 deadline is looming for passing a spending measure needed to fund a wide range of federal government programs.Although Republicans control both chambers of the U.S. Congress, their leaders will likely need to rely on at least some Democratic votes to pass the measure.

Democrats have said they will demand help for the “Dreamers” – young people brought to the United States illegally as children – as part of their price for providing votes on the budget measure.

But Trump said in a tweet late on Tuesday: “I ran on stopping illegal immigration and won big. They can’t now threaten a shutdown to get their demands.”

Congress has three choices: approve a massive bill for more than $1 trillion to keep the government operating through Sept. 30, 2018; pass a shorter extension of current funding to buy more time; or fail to pass anything and risk a partial government shutdown.

On Capitol Hill, Schumer said he and Pelosi believed the best path forward would be to negotiate with Republican leaders in Congress instead of going to the White House for a “show meeting.”

(Reporting by Steve Holland; Editing by Peter Cooney)