Republican Senator Graham says Trump receptive to shutdown deal idea

Capitol Hill is seen as a partial U.S. government shutdown continues in Washington, U.S., December 30, 2018. REUTERS/Jim Young

By David Lawder

WASHINGTON (Reuters) – U.S. Senator Lindsey Graham said on Sunday he was optimistic that Republicans, Democrats and President Donald Trump could reach a deal to end a government shutdown that includes border wall funding and legal status for some illegal immigrants.

FILE PHOTO: Sen. Lindsey Graham (R-SC) waits for U.S. President Donald Trump to enter the room to speak about the "First Step Act" in the Roosevelt Room at the White House in Washington, U.S. November 14, 2018. REUTERS/Leah Millis/File Photo

FILE PHOTO: Sen. Lindsey Graham (R-SC) waits for U.S. President Donald Trump to enter the room to speak about the “First Step Act” in the Roosevelt Room at the White House in Washington, U.S. November 14, 2018. REUTERS/Leah Millis/File Photo

Graham, a Republican, told reporters after meeting Trump for lunch at the White House that Trump was receptive to Graham’s idea of a deal that might provide work permits to so-called Dreamers, people brought illegally to the United States as children, in exchange for money for physical border barriers.

“The president was upbeat, he was in a very good mood, and I think he’s receptive to making a deal,” Graham said, adding that Trump found the potential Dreamer concession “interesting.”

But the senator said there would never be a government spending deal that did not include money for a wall or other physical barriers on the U.S.-Mexico border. The wall was one of the central promises of Trump’s presidential campaign.

“I don’t see Democrats giving us more money unless they get something. So, the one thing we talked about is making deals,” Graham said.

“After lunch I’ve never been more encouraged that if we can get people talking we can find our way out of this mess and that would include around $5 billion for border security, slash wall, slash fencing whatever you want to call it in areas that make sense,” he added.

Trump later made clear on Twitter that he regarded a wall as necessary.

“President and Mrs. Obama built/has a ten foot Wall around their D.C. mansion/compound. I agree, totally necessary for their safety and security,” Trump wrote. “The U.S. needs the same thing, slightly larger version!”

Earlier, on CNN’s “State of the Union” program, Graham floated the idea of giving Democrats a version of stalled legislation to protect Dreamers from deportation in exchange for wall funding.

The Trump administration in 2017 announced plans to phase out the Deferred Action for Childhood Arrivals program, begun under former President Barack Obama to shield Dreamers from deportation. But Trump’s DACA phase-out has been delayed by court rulings against it.

With the partial government shutdown in its ninth day on Sunday, some other lawmakers were less upbeat about prospects for a deal to restore spending authority.

Republican Senator Richard Shelby warned on CBS’ “Face the Nation” that negotiations were at an impasse and the shutdown “could last a long, long time.”

Democratic U.S. Representative Hakeem Jeffries said the country needed comprehensive immigration reform and border security.

“We are not willing to pay $2.5 billion or $5 billion and wasting taxpayer dollars on a ransom note because Donald Trump decided that he was going to shut down the government and hold the American people hostage,” Jeffries said on ABC.

Democrats take control of the U.S. House of Representatives this week, following November’s congressional elections.

(Reporting by Timothy Gardner and David Lawder; Additional reporting by Christopher Bing and Doina Chiacu; Writing by David Lawder; Editing by Phil Berlowitz and Peter Cooney)

House Republicans short of votes to pass immigration bill: lawmaker

Migrant families from Mexico, fleeing from violence, listen to officers of the U.S. Customs and Border Protection before entering the United States to apply for asylum at Paso del Norte international border crossing bridge in Ciudad Juarez, Mexico. REUTERS/Jose Luis Gonzalez

By Richard Cowan and Amanda Becker

WASHINGTON (Reuters) – Republicans in the U.S. House of Representatives have not yet rounded up the votes needed to pass immigration legislation they plan to take up later on Thursday, a member of the House Republican leadership said.

“Well, we’re working with our members. Obviously we have to get 218 votes and we’re working hard to get there,” Representative Cathy McMorris Rodgers, the head of the House Republican Conference, told Fox News Channel.

“We’re not there yet but we’re working on it,” she said.

The House plans to vote on two bills designed to halt the practice of separating families entering the United States illegally and address a range of other immigration issues.

President Donald Trump on Wednesday stepped back from his administration’s practice of separating immigrant families that illegally cross the border, which had been part of his so-called zero tolerance policy on illegal immigration. He signed an executive order to stop the separations but it was unclear how children already taken from their parents would be reunited.

The policy shift faces legal challenges because of a court order that put a 20-day cap on how long minors can be detained, and the Trump administration has called for legislation to find a permanent fix.

Both House bills, backed by Trump but opposed by Democrats and immigration advocacy groups, would fund the wall Trump has proposed along the U.S. border with Mexico and reduce legal migration, in part by denying visas for some relatives of U.S. residents and citizens living abroad.

The more conservative bill would deny the chance of future citizenship to “Dreamers” – immigrants brought illegally into the United States years ago when they were children.

Even if a bill clears the House, it would face an uncertain future in the Senate, where lawmakers are considering different measures and where Republicans would need at least nine senators from the Democratic caucus to join them to ensure any bill could overcome procedural hurdles.

“What is the purpose of the House doing good immigration bills when you need 9 votes by Democrats in the Senate, and the Dems are only looking to Obstruct,” Trump said in a tweet on Thursday as he renewed his call for a change in Senate rules to allow legislation to move with a simple majority.

(Reporting by Tim Ahmann; Editing by Chizu Nomiyama and Bill Trott)

Push for ‘Dreamer’ immigration bill gains steam in U.S. House of Representatives

Activists and DACA recipients march up Broadway during the start of their 'Walk to Stay Home,' a five-day 250-mile walk from New York to Washington D.C., to demand that Congress pass a Clean Dream Act, in Manhattan, New York, U.S., February 15, 2018. REUTERS/Shannon Stapleton

WASHINGTON (Reuters) – A bipartisan majority of the U.S. House of Representatives on Wednesday urged Speaker Paul Ryan to schedule debate on bills to protect young undocumented immigrants from deportation, in a move aimed at reviving a push that sputtered in the Senate in February.

Backers said they had 240 House members on board so far pushing for debate of four different bills to replace the Deferred Action for Childhood Arrivals (DACA) program, which Republican President Donald Trump ended on March 5.

Under the House members’ plan, the measure with the most votes would win and be sent to the Senate. November’s congressional elections could contribute to an already difficult path, however.

The bill many lawmakers think is most popular was written by Republican Will Hurd and Democrat Peter Aguilar. It would protect “Dreamer” immigrants from deportation and strengthen border security, although not with a Southwest border wall Trump wants.

DACA, established in 2012 by Democratic then-President Barack Obama, protected illegal immigrants brought into the United States by their parents when they were children. Around 800,000 “Dreamers” have participated.

With Trump’s action, their legal status is in limbo pending the outcome of court battles.

Trump has urged Congress to write legislation giving these immigrants permanent protections, but he has failed to reach a compromise with Congress.

“It is time to have a full debate for the American public and have the entire country decide what border security should look like, what a permanent fix for Dreamers should look like,” said Republican Representative Jeff Denham, who represents a central California district with a large Hispanic population.

In 2016, Democratic presidential candidate Hillary Clinton beat Trump in his district, leading to speculation that Denham, like Republicans in similar areas, could face a tough re-election.

At least 218 votes are needed in the 435-member House to pass legislation. With five vacancies, slightly fewer are necessary.

But there are difficulties, even with the 240 votes supporting this latest immigration push.

Only 50 of the House’s 237 Republicans are behind the effort so far, with nearly all 190 Democrats on board.

That presents political problems for Ryan and his leadership team, which bridles at passing legislation not backed by a majority of fellow Republicans.

Representative Linda Sanchez, a member of House Democratic leadership, told reporters that a bill to take care of Dreamers could pass the House if Ryan allowed it, but that opponents were blocking a debate.

“One hundred of the most conservative members in that (Republican) caucus are making policy for the rest of the United States,” Sanchez said.

(Reporting By Richard Cowan; editing by Jonathan Oatis)

Trump threatens to veto spending bill, raising government shutdown risk

The U.S. Capitol building is seen in Washington, U.S., February 8, 2018. REUTERS/ Leah M

By Richard Cowan and Steve Holland

WASHINGTON (Reuters) – U.S. President Donald Trump made a surprising threat to veto Congress’ newly passed $1.3 trillion spending bill, a move that raised the specter of a possible government shutdown ahead of a midnight Friday deadline to keep federal agencies open.

In a tweet on Friday morning Trump said he was displeased about immigration issues in the bill, even though the White House had given assurances on Thursday that he would sign it. Lawmakers in the Senate and House of Representatives, which both are dominated by Trump’s fellow Republicans, had left Washington after passing the measure.

“I am considering a VETO of the Omnibus Spending Bill based on the fact that the 800,000 plus DACA recipients have been totally abandoned by the Democrats (not even mentioned in Bill) and the BORDER WALL, which is desperately needed for our National Defense, is not fully funded,” Trump wrote.

Trump has sought to make good on his campaign promise to build a wall along the U.S.-Mexico border and the bill includes $1.6 billion for six month’s of work on the project, although he had sought $25 billion for it. In a tweet on Thursday he had seemed not to have a problem with partial funding because “the rest will be forthcoming.”

Trump also has been at odds with Democrats in Congress over the fate of Dreamer immigrants – those brought to the United States illegally when they were children.

At the White House, many aides were caught by surprise by the veto threat and were scrambling for answers. There was no immediate explanation for what prompted the threat other than Trump’s frequent complaints that he felt Democrats were unwilling to move his way on immigration issues.

Trump appeared to have tweeted from the White House residence, as there is no Marine guard posted outside the door of the West Wing, which is what happens when the president is in the West Wing.

A White House official would say only that “it’s the president’s tweet” and could not answer further questions. Trump is scheduled to leave later in the day for a weekend at his private resort in Palm Beach, Florida.

There was no immediate comment from Republican leaders in Congress.

THREAT OR BLUFF?

As the six-month spending deal was coming together, there were reports Trump had balked at the deal and had to be persuaded by Republican Speaker Paul Ryan to support it.

Only minutes before Trump’s threat, Ryan had tweeted: “Our men and women in uniform have earned a pay raise. That’s why yesterday, we voted to provide the biggest pay raise for our troops in 8 years.”

Conservatives and deficit hawks in Trump’s party had panned the bill because of its spending increases. Some cheered his threat to veto it.

“Please do, Mr. President,” Republican Senator Bob Corker said on Twitter. “I am just down the street and will bring you a pen. The spending levels without any offsets are grotesque, throwing all of our children under the bus.”

Democratic lawmakers said Trump created his own crisis by canceling the Deferred Action for Childhood Arrivals (DACA) program that gives work permits to certain young immigrants and protects them from deportation. The decision is currently tied up in court cases.

Trump had agreed to extend the program if Congress agreed to sweeping changes in immigration laws and provided $25 billion to build the wall and increase border security. Democrats rejected the plan.

“NOW you care about the Dreamers Mr. President?” Democratic Representative Jan Schakowsky said on Twitter. “Six months after throwing their lives into chaos? Is this a cruel joke?”

In a hastily arranged news conference on Thursday, Trump’s budget director and top legislative aide insisted he would sign the bill and tried to cast the $1.6 billion in funding for border security as a downpayment on Trump’s wall pledge.

“It does a lot of what we wanted – not everything we wanted – but a lot of what we wanted on immigration,” White House budget director Mick Mulvaney told reporters.

(Reporting by Richard Cowan and Steve Holland; additional reporting by Roberta Rampton, Susan Heavey and Patricia Zengerle; Editing by Bill Trott)

U.S. spending bill tackles border, election security: source

FILE PHOTO: U.S. border patrol officers are pictured near a prototype for U.S. President Donald Trump's border wall with Mexico, behind the current border fence in this picture taken from the Mexican side of the border in Tijuana, Mexico

By Richard Cowan

WASHINGTON (Reuters) – A federal government spending deal being worked out in the U.S. Congress includes additional funding to boost border security, protect the upcoming elections in November and rebuild aging infrastructure, a source familiar with the negotiations said on Wednesday.

While the source said a final overall spending agreement had not been reached, other Republican and Democratic congressional aides have told Reuters that leaders plan to unveil their agreement on the $1.3 trillion spending bill later on Wednesday.

Lawmakers in the Republican-controlled Congress have until Friday night to reach a deal before a lapse would force federal agencies to suspend operations. The current plan would provide for government funding through Sept. 30, after a series of short-term funding measures implemented since last fall.

Republican leaders in the House and Senate said on Tuesday they were close to a deal and hoped to complete legislation by Friday as they worked to overcome divisions over several thorny issues such as President Donald Trump’s proposed border wall.

So far, the package provides $1.6 billion for some fencing along the U.S. border with Mexico and other technological border security efforts, the source said.

Trump had sought $25 billion for a full wall, but negotiations fell through to provide more money in exchange for protections for “Dreamers,” young adults who were brought illegally into the United States as children.

The spending plan also provides $307 million more than the Trump administration’s request for the FBI to counter Russian cyber attacks, and $380 million for U.S. states to improve their technology before November’s congressional election, according to the source.

U.S. intelligence agencies have concluded that Russia sought to meddle in the 2016 presidential election campaign, and intelligence chiefs said last month that Russia will seek to interfere in the midterm elections this year by using social media to spread propaganda and misleading reports. Russia has denied any interference.

The planned spending measure allocates $10 billion for spending on infrastructure such as highways, airports and railroads. It also includes money for the so-called Gateway rail tunnel connecting New York and New Jersey, the source said.

Trump has threatened to veto the bill if the Gateway project is included. While its funds remain, they are directed through the U.S. Department of Transportation, rather than provided directly, Politico reported.

Additionally, lawmakers’ added $2.8 billion to address opioid addiction, the source said.

One potential stumbling block includes gun-related provisions prompted by a mass shooting at a Florida high school on Feb. 14 that killed 17 students and faculty members. On Tuesday, as another shooting swept over a high school in Maryland, House Speaker Paul Ryan said lawmakers were still discussing a proposal to improve federal background checks for gun purchases.

Another issue tying up negotiations was tax treatment for grain co-ops versus corporate producers, according to Politico.

(Reporting by Richard Cowan, Susan Heavey, Lisa Lambert; Editing by Doina Chiacu, Bernadette Baum and Frances Kerry)

White House rejects bipartisan Senate immigration plan

Activists and DACA recipients march up Broadway during the start of their 'Walk to Stay Home,' a five-day 250-mile walk from New York to Washington D.C., to demand that Congress pass a Clean Dream Act, in Manhattan, New York, U.S., February 15, 2018. REUTERS/Shannon Stapleton

By Richard Cowan and Susan Cornwell

WASHINGTON (Reuters) – The White House stuck to its hard-line immigration approach on Thursday and said advisers would recommend that President Donald Trump veto a bipartisan U.S. Senate proposal to protect young “Dreamer” immigrants and tighten border security.

The plan, which would protect from deportation 1.8 million young adults who were brought to the United States illegally as children, would weaken border security and undercut existing immigration law, spokeswoman Sarah Sanders said in a statement.

“Preventing enforcement with respect to people who entered our country illegally before a date that is in the future would produce a flood of new illegal immigration in the coming months,” she said.

The proposal, which had been considered perhaps the most likely to succeed in the Senate, also includes a $25 billion fund to strengthen border security and possibly even build segments of Trump’s long-promised border wall with Mexico.

White House opposition to the bipartisan plan appeared to focus on a provision that would direct the Department of Homeland Security to focus enforcement efforts on undocumented immigrants who have been convicted of crimes, are a threat to national security or arrived in the United States after June 30, 2018.

The Senate is debating at least four immigration measures as lawmakers race to resolve the status of Dreamers, who were protected under an Obama-era program. Trump has ordered that program to end by March 5, telling Congress it should come up with an alternative plan by then.

The Department of Homeland Security also opposed the bipartisan plan led by Republican Senator Susan Collins, saying it would prevent DHS officers from being able to remove millions of undocumented immigrants from the country, and “is an egregious violation of the four compromise pillars laid out by the President’s immigration reform framework.”

Trump has said any immigration bill must include funds to build the border wall, end the visa lottery program, impose curbs on visas for the families of legal immigrants and protect Dreamers.

The Republican president has backed a measure by Republican Senator Chuck Grassley that embraces his wish list but is unlikely to win support from enough Democrats in the closely divided chamber.

A narrower third bill focusing just on Dreamers and border security, by Republican John McCain and Democrat Chris Coons, has been dismissed by Trump. A fourth measure, which is not expected to pass, focuses on punishing “sanctuary cities” that do not cooperate with federal immigration enforcement efforts.

Senate Majority Leader Mitch McConnell said votes on the four measures would be held possibly on Thursday or at least Friday morning, ahead of a self-imposed Senate deadline of the end of the week.

‘BITTER PILLS’

The bipartisan Collins bill got a slight boost earlier on Thursday when an influential group that advocates for immigrants, America’s Voice, gave its reluctant support to the measure.

The group opposes provisions allowing the construction of a border wall and moves to limit legal immigration, but said in a statement, “We believe the chance to provide a permanent solution for Dreamers calls us to swallow these bitter pills.”

Despite backing from several Republicans for the Collins-led plan, it was unclear whether it would muster the 60 votes needed in the 100-member Senate, controlled 51-49 by Republicans.

A senior Senate Republican aide said the White House veto threat would “scuttle” some Republican support for the bipartisan bill. The prospect of all bills failing could even discourage some Republicans from voting for the Trump-backed plan, the aide said.

Trump is anxious to start on the border wall, which he made a central part of his 2016 election campaign and which Democrats have long opposed. Senate Democratic Leader Chuck Schumer said the wall would be “an enormous waste of money,” but both parties had to bend.

“We have to rise above our differences, admit that no one will get everything they want and accept painful compromises,” Schumer said.

In September, Trump rescinded the Deferred Action for Childhood Arrivals (DACA) program to protect Dreamers from deportation and offer them work permits. Although the protections are due to start expiring on March 5, federal judges have blocked that from taking effect amid ongoing litigation.

Even if one of the Senate measures passes, it must still win over the U.S. House of Representatives, where Republicans hold a larger majority and are pushing a more conservative proposal that is more closely in line with Trump’s framework.

(Additional reporting by Susan Heavey and Makini Brice; Writing by John Whitesides; Editing by Frances Kerry)

Senate faces showdown over immigration and ‘Dreamers’

Demonstrators calling for new protections for so-called "Dreamers," undocumented children brought to the U.S. by their immigrant parents, walk through a senate office building on Capitol Hill in Washington, U.S. January 17, 2018. REUTERS/Jonathan Ernst

By Susan Heavey and Richard Cowan

WASHINGTON (Reuters) – The Trump administration remained insistent on hardline immigration measures on Thursday as the U.S. Senate prepared to vote on various legislative proposals to protect young “Dreamer” immigrants and to tighten border security.

In a statement overnight, the Department of Homeland Security dismissed what some thought was the bill most likely to win enough bipartisan support to pass the chamber, saying it failed to meet minimum criteria set out by President Donald Trump.

The plan, crafted by a bipartisan group of senators led by moderate Republican Susan Collins, would protect from deportation 1.8 million young adults who were brought to the United States illegally as children and who are known as Dreamers.

It also includes a $25 billion fund to strengthen border security and possibly even construct segments of Trump’s long-promised border wall with Mexico.

The immigration issue has become a matter of urgency for lawmakers after Trump in September ordered an Obama-era program that protected Dreamers to end by March 5, telling Congress it should come up with a solution by then.

The Department of Homeland Security blasted the Collins-led plan, saying it destroyed the ability of DHS officers to remove millions of undocumented immigrants from the country, and “is an egregious violation of the four compromise pillars laid out by the President’s immigration reform framework.”

Trump’s four provisions are for any bill to include funds to build the border wall, to end the visa lottery program, to impose curbs on visas for the families of legal immigrants, and to protect Dreamers.

The Republican president has backed a bill by Republican Senator Chuck Grassley that embraces Trump’s wish list but is unlikely to win support from enough Democrats in the closely-divided chamber.

A narrower third bill, by Republican John McCain and Democrat Chris Coons, has been dismissed by Trump.

Senate Majority Leader Mitch McConnell was expected to bring forward all three measures on Thursday to gauge which has enough support to move toward a vote in the Senate ahead of a Friday deadline he has imposed for the legislation.

Despite backing from several Republicans for the Collins-led plan, it was unclear if enough Democrats would get behind it to muster the 60 votes needed in the 100-member Senate that Republicans control 51-49.

Democratic U.S. Senator Tim Kaine told MSNBC on Thursday he thought lawmakers were “very close” to the 60 votes needed on the Collins-led measure. Republican Senator Marco Rubio told Fox News he was unsure whether any Senate plan would move forward.

Even if one of three bills passes, it must still win over the U.S. House of Representatives, where Republicans hold a larger majority and are pushing a more conservative proposal that is closer in line with Trump’s framework.

U.S. House Speaker Paul Ryan has said he will support only legislation backed by Trump, who has carried his tough law-and-order stance toward immigrants from his 2016 campaign into his administration.

(Additional reporting by Makini Brice; Editing by Frances Kerry)

Senate Republican leader embraces Trump immigration plan

Senate Majority Leader Mitch McConnell (R-KY) arrives for a news conference on Capitol Hill in Washington, U.S., February 6, 2018. REUTERS/Joshua Roberts

By Richard Cowan

WASHINGTON (Reuters) – U.S. Senate Republicans on Tuesday turned up the heat on Democrats seeking protections for young “Dreamer” immigrants as Senate Majority Leader Mitch McConnell embraced President Donald Trump’s demands for broad changes to the country’s immigration policies.

In announcing his support for legislation that would help immigrants who were brought illegally to the United States as children, McConnell also threw his weight behind building a U.S.-Mexico border wall and sharply curtailing visas for the parents and siblings of immigrants living in the United States legally.

“This proposal has my support and during this week of fair debate I believe it deserves support of every senator who’s ready to move beyond making points and actually making a law,” McConnell, a Republican, said in a speech on the Senate floor.

Even some Republicans, however, have expressed skepticism that such broad, fundamental changes in U.S. immigration law can pass the Senate by the Thursday deadline that No. 2 Republican Senator John Cornyn urged late on Monday.

Also on Monday, Democratic Senator Dick Durbin, who is leading the charge for Dreamers, told reporters that he thought early Senate votes on immigration legislation would begin with “expansive” measures that will fail to win the 60 votes needed to clear procedural hurdles.

Then, Durbin said, senators will be forced to move “toward the center with a moderate approach.”

But at least for now, Republicans were holding a tough line. Republican Senator Tom Cotton, interviewed on Fox News, said Trump’s immigration plan “is not an opening bid for negotiations. It’s a best and final offer.”

That ran counter to statements Trump has made in recent days, including early on Tuesday in which he said in a tweet that “Negotiations on DACA have begun.”

DACA is the Deferred Action for Childhood Arrivals program, which Democratic former President Barack Obama initiated in 2012 and which has allowed around 700,000 Dreamers to legally study and work in the United States temporarily. Last September, Trump announced he would terminate the program on March 5.

During testimony before the Senate Budget Committee on Monday, White House Budget Director Mick Mulvaney said he thought that a deal on immigration legislation will be reached “and that we have full funding on the (border) wall” of $18 billion over two years.

Durbin and other Democrats have talked of the possibility of a bill that provides for a pathway to citizenship for Dreamers and additional border security, which could include the construction of more border fencing and other high-tech tools to deter illegal immigrants.

(Reporting By Richard Cowan, additional reporting by Katanga Johnson; Editing by Bernadette Baum and Jonathan Oatis)

Trump signs deal to end brief government shutdown, increase U.S. spending

U.S. Senate Minority Leader Chuck Schumer (D-NY) and U.S. Senate Majority Leader Mitch McConnell (R-KY) walk to the Senate chamber on Capitol Hill in Washington, D.C., U.S., February 7, 2018.

By David Morgan, Amanda Becker and Richard Cowan

WASHINGTON (Reuters) – The U.S. Congress ended a brief government shutdown on Friday by reaching a wide-ranging deal that is expected to push budget deficits into the $1 trillion-a-year zone.

The bill passed by a wide margin in the Senate and survived a rebellion of 67 conservative Republicans in the House of Representatives thanks to the support of some Democrats. Those conservatives were mainly angry about non-military spending increases.

President Donald Trump signed the measure into law on Friday morning, ending a government shutdown that began just after midnight, when Congress was still debating the budget deal.

It was the second shutdown this year under the Republican-controlled Congress and Trump, who played little role in attempts by party leaders this week to end months of fiscal squabbling.

The deal is the fifth temporary government funding measure for the fiscal year that began Oct. 1 and replenishes federal coffers until March 23, giving lawmakers more time to write a full-year budget.

It also extends the U.S. government’s borrowing authority until March 2019, sparing Washington politicians difficult votes on debt and deficits until after mid-term congressional elections in November.

Once known as the party of fiscal conservatives, the Republicans and Trump are now quickly expanding the U.S. budget deficit and its $20 trillion national debt. Their sweeping tax overhaul bill approved in December will add an estimated $1.5 trillion to the national debt over 10 years.

Nearly $300 billion in new spending included in the bill approved on Friday will ensure the annual budget deficit will exceed $1 trillion in 2019, said the Committee for a Responsible Federal Budget, a private fiscal policy watchdog group in Washington.

Friday’s budget deal allows for $165 billion in additional defense spending over two years that will help Trump deliver on his promise to rebuild the military.

That won over many Republicans but some were still furious over the $131 billion extra made available for non-military spending, including health and infrastructure.

None of the added spending will be offset by budget savings elsewhere or revenue increases, relying instead on government borrowing. There also is no offset reduction for nearly $90 billion in new disaster aid for U.S. states and territories ravaged by hurricanes or wildfires.

PRESSURE ON MARKETS

The brief shutdown in Washington came at a sensitive time for financial markets. Stocks plunged on Thursday on heavy volume, throwing off course a nearly nine-year bull run. The S&P 500 slumped 3.8 percent.

Markets barely flinched at the last shutdown in January, but that was before a dizzying selloff that started on Jan. 30 amid concerns about inflation and higher interest rates.

Republican Senator Rand Paul, objecting to deficit spending in the bill, engaged in a nine-hour, on-again, off-again protest and floor speech late on Thursday. He had harsh words for his own party.

“Now we have Republicans hand in hand with Democrats offering us trillion-dollar deficits,” he said. “I can’t … in good faith, just look the other way because my party is now complicit in the deficits. Really who is to blame? Both parties.”

His dissent forced the brief government shutdown, underscoring the persistent inability of Congress and Trump to deal efficiently with Washington’s most basic fiscal obligation of keeping the government open.

“Republican majorities in the House and Senate have turned the process into an embarrassing spectacle, running from one crisis directly into the next,” said Democratic Representative Nita Lowey prior to the House vote.

Republican Representative Kristi Noem told Reuters she voted against the bill because it increases non-defense spending and raises the federal debt ceiling.

“To increase domestic spending and raise the debt ceiling was coupling two very bad policy decisions and with no reforms tied to it. It was very disappointing,” she said.

House Democratic leader Nancy Pelosi and others in her party had opposed the bill because Republican House leaders would not guarantee her a debate later on steps to protect about 700,000 “Dreamer” immigrants from deportation.

These young people were brought illegally to the country as children years ago, mostly from Mexico. Trump said in September he would end by March 5 former Democratic President Barack Obama’s Deferred Action for Childhood Arrivals (DACA) program that protects the Dreamers from deportation.

Trump urged Congress to act before then. Senate Republicans have pledged to hold a separate immigration debate this month.

House Speaker Paul Ryan had not offered Pelosi an equivalent promise in the House, although he said in a speech before the vote on Friday that he would push ahead for a deal.

“My commitment to working together on an immigration measure that we can make law is a sincere commitment,” he said. “We will solve this DACA problem.”

But Pelosi said Ryan’s words fell short, accusing him of not having “the courage to lift the shadow of fear from the lives of” Dreamers who face the prospect of deportation.

Minutes after midnight, when the short-lived shutdown began, the U.S. Office of Personnel Management sent a notice to millions of federal employees telling them to check with their agencies on whether they should report to work on Friday.

(Additional reporting by Eric Beech, Makini Brice, Katanga Johnson and Doina Chiacu; Writing by Kevin Drawbaugh; Editing by Matthew Mpoke Bigg and Bill Trott)

White House sees good chance of long-term budget deal

Senate Minority Leader Chuck Schumer (D-NY) speaks during a news conference on Capitol Hill in Washington, U.S., February 6, 2018.

By Richard Cowan

WASHINGTON (Reuters) – U.S. lawmakers are expected to unveil “a good, bipartisan deal” on Wednesday that would raise current limits on federal spending for two years, the White House said, as Congress seeks to end fights over spending that have plagued Washington for months.

Higher defense spending expected in the agreement would allow President Donald Trump to make good on his campaign promise for a U.S. military build-up, although the White House is still concerned about non-defense spending levels, White House legislative affairs director Marc Short told MSNBC.

But Nancy Pelosi, the House of Representatives’ Democratic leader, said she would not support such a deal, aimed at lifting some limits on government spending for two years, unless Republican Speaker Paul Ryan promised to advance legislation on immigration. Trump’s fellow Republicans control both chambers of Congress.

Over the past several months, congressional leaders have been negotiating a deal that would raise spending caps for the current fiscal year, which ends on Sept. 30, and the next one for both defense and non-defense programs.

A broad budget deal could ease the brinkmanship over spending that roils Washington so regularly that financial markets barely flinch anymore at the threat of a government shutdown.

“There’s some things that you give and take in a negotiation like this, and so I think this will be a good, bipartisan deal but we’re more excited about the defense spending,” Short said.

Aside from the planned longer-term deal, lawmakers were also trying to reach agreement by Thursday to avoid a shutdown and fund the government until March 23.

“We expect the government is not going to shut down this week,” Short said.

In a further sign of Congress’ inability to get basic work done, the House on Tuesday had to approve another stopgap bill to keep the federal government from shutting down.

Stopgap measures are needed when Congress fails to approve spending on time for a full fiscal year, something it has done only four of the past 40 years, according to congressional researchers.

The Senate was expected to take up the House stopgap legislation as Congress raced to get a finished bill for Trump to sign into law before government funding runs out on Thursday.

If that fails, the U.S. government would experience its second shutdown this year, after a partisan standoff over U.S. immigration policy led to a three-day partial shutdown last month.

Immigration again emerged as a possible point of contention in budget talks when Democrat Pelosi said she would oppose a two-year deal unless the Republican Ryan promised to advance legislation to protect hundreds of thousands of young adult immigrants, known as “Dreamers,” brought to the United States illegally as children.

Republicans are eager to keep spending and immigration separate. But Trump threatened on Tuesday to upend budget talks by saying he would welcome a government shutdown if Congress were not able to agree to changes in immigration law that he said would prevent criminals from entering the country.

January’s shutdown came after Democrats sought to have a spending bill include protections for the Dreamers that Trump has rescinded effective in March.

On Tuesday, top Senate Democrat Chuck Schumer said the emerging Senate two-year deal would increase funding for domestic programs like drug treatment and broadband infrastructure that Democrats want, as well as a military spending increase sought by Republicans.

“We’re making progress,” Senator Dick Durbin, the Democratic minority whip, told MSNBC on Wednesday.

Congress must also raise the federal debt ceiling or face defaulting on the government’s bills, and several Republican lawmakers said the matter would be part of Senate budget talks. The U.S. Treasury is expected to run out of borrowing options by late March.

(Additional reporting by Susan Heavey; Editing by Will Dunham)