Protesters call for investigation following FBI director firing

Protesters gather to rally against U.S. President Donald Trump's firing of Federal Bureau of Investigation (FBI) Director James Comey, outside the White House in Washington, U.S. May 10, 2017. REUTERS/Jonathan Ernst

By Chris Kenning and Ian Simpson

CHICAGO/WASHINGTON (Reuters) – A day after President Donald Trump’s stunning dismissal of FBI Director James Comey, protesters gathered in Washington, Chicago and other cities to urge an independent investigation of alleged collusion between Russia and Trump’s presidential campaign.

Waving signs and chanting outside the White House and at Senate constituency offices in other states, demonstrators said Trump’s move had compromised the Federal Bureau of Investigation’s probe.

“I still don’t have any love for Comey,” said Cody Davis, 29, among a small group of protesters near Chicago’s 96-story Trump International Hotel and Tower. “I’m not here to defend him. You could easily argue he lost the election for Hillary.”

Comey has been criticized by Democrats for his handling of an investigation surrounding 2016 Democratic presidential nominee Hillary Clinton’s use of a private email server while she was secretary of state.

“The reason I’m here today is not that he was fired but because it was so clearly because Trump was afraid of something,” Davis said.

White House officials have denied any political motivation behind the firing and Trump said Comey had not been doing a good job and had lost the confidence of everyone in Washington.

Critics at various protests compared the Comey dismissal to the “Saturday Night Massacre” of 1973, in which President Richard Nixon fired an independent special prosecutor investigating the Watergate scandal.

MoveOn.Org and a coalition of liberal groups hastily organized protests at senators’ offices in more than a dozen states including New York, Kentucky, Arizona, California and Florida.

“Donald Trump just fired the one man in America who was leading the most thorough and long-lasting investigation of Donald Trump,” Jo Comerford, campaign director for MoveOn.org, said in a statement.

The issue also was discussed at town hall meetings being held by members of Congress across the country.

For some Trump supporters the controversy was overblown.

Denny Herman of Wamego, Kansas, said Comey deserved to be fired and the Russia investigation would not turn up wrongdoing. He said there was no need for a special prosecutor.

“It’s just liberal crap,” he said while relaxing at a bar. “We got bigger fish to fry.”

But in downtown Chicago, several dozen people banged pots and pans, waved signs reading “You can’t fire the truth” and chanted “Investigate Now!”

Several hundred people also gathered outside the White House and called for a special prosecutor.

“I feel like what happened yesterday was truly shocking, and the Republicans won’t stand up and do what they should without somebody pressing them,” said demonstrator Kelli Rowedder, a 34-year-old teacher from Washington.

(Additional reporting by Karen Dillon in Wamego, Kan. and Kathy Lynn Gray in New Albany, Ohio; Editing by Bill Trott)

Defending firing of FBI director, Trump derides Democratic critics

This picture shows a copy of the letter by President Trump firing Director of the FBI James Comey at the White House. REUTERS/Joshua Roberts

By Susan Heavey

WASHINGTON (Reuters) – President Donald Trump defended his firing of FBI Director James Comey on Wednesday, fighting a storm of criticism that the ouster was aimed at blunting an agency probe into his presidential campaign’s possible collusion with Russia to sway the 2016 election.

The Republican president’s abrupt move on Tuesday stunned Washington and was swiftly condemned by Democrats and by some in his own party.

In a series of posts on Twitter on Wednesday morning, Trump sought to explain his move, and lambasted his critics.

“Comey lost the confidence of almost everyone in Washington, Republican and Democrat alike. When things calm down, they will be thanking me,” he said.

The Trump administration said on Tuesday Comey’s firing was over his handling of an election-year FBI probe into then-Democratic presidential nominee Hillary Clinton’s use of a private email server during her time as secretary of state.

Though many Democrats have criticized Comey’s management of that investigation, they said they were troubled by the timing of his dismissal, given that Trump could have acted soon after taking office on Jan. 20 and that he has repeatedly criticized the FBI and congressional probes into alleged Russian involvement in the election.

Asked if Trump had fired Comey over his handling of the Russia investigation, White House spokeswoman Sarah Huckabee Sanders said no.

“Frankly, if that’s going to continue, it’s going to continue whether Jim Comey is there or not,” she told MSNBC in an interview.

Some Democrats compared the move to the “Saturday Night Massacre” of 1973, in which President Richard Nixon ordered the firing of an independent special prosecutor investigating the Watergate scandal that eventually led Nixon to resign.

Democrats amplified their calls on Wednesday for an independent investigation into Moscow’s role in the 2016 election.

‘CONSTITUTIONAL CRISIS’

“What we have now is really a looming constitutional crisis that is deadly serious,” Democratic Senator Richard Blumenthal told CNN.

In one tweet on Wednesday, Trump referred to previous Democratic criticism of Comey over the Clinton probe. “The Democrats have said some of the worst things about James Comey, including the fact that he should be fired, but now they play so sad!” he said.

The president also personally attacked Blumenthal, referring to him as “Richie,” calling his comments on the Comey firing “a joke” and alluding to a years-old controversy over the senator’s military service during the Vietnam War era.

Some Republicans have also said they were troubled by the timing of Comey’s firing, including Senator Richard Burr, the Republican chairman of the Senate Intelligence Committee. That is one of several congressional panels investigating Russian interference during the election and possible collusion by Trump campaign staff.

U.S. intelligence agencies concluded in a January report that Russian President Vladimir Putin had ordered an effort to disrupt the 2016 election that included hacking into Democratic Party emails and leaking them, with the aim of helping Trump.

Russia has repeatedly denied any such meddling and the Trump administration denies allegations of collusion with Russia.

LAVROV VISIT

Russian Foreign Minister Sergei Lavrov is visiting Washington this week for high-level meetings, including one with Trump at the White House later on Wednesday in what will be the highest-level contact between Trump and the Russian government since he became president.

The two were scheduled to meet at 10:30 a.m. ET (1430 GMT), the White House said.

Asked by reporters at the U.S. State Department before a meeting with Secretary of State Rex Tillerson if Comey’s firing would cast a shadow over the talks, Lavrov responded in a sarcastic tone: “Was he fired? You’re kidding. You’re kidding.”

The Kremlin said it hoped Comey’s firing would not affect Moscow’s ties with Washington, saying it believed his dismissal had nothing to do with Russia.

Legal experts said Trump’s dismissal of Comey does not mean the FBI’s Russia investigation will be disrupted or end, since career FBI staffers can continue the probe even as the search for a new director begins.

CNN reported on Tuesday night that federal prosecutors had issued grand jury subpoenas to former Trump national security adviser Michael Flynn, seeking business records, as part of the probe into Russian interference in the election.

Comey’s deputy, Andrew McCabe, took over as acting FBI director while the White House searches for a new permanent director.

“James Comey will be replaced by someone who will do a far better job, bringing back the spirit and prestige of the FBI,” Trump tweeted.

(Reporting by Susan Heavey, David Alexander, Arshad Mohammed; Writing by Will Dunham and Susan Heavey; Editing by Frances Kerry)

U.S. suspends aid to Kenyan health ministry over corruption concerns

FILE PHOTO: A riot policeman stands guard as doctors chant slogans after their case to demand fulfilment of a 2013 agreement between their union and the government that would raise their pay and improve working conditions, was heard at the employment and labour relations courts in Nairobi, Kenya, February 13, 2017. REUTERS/Thomas Mukoya/File Photo

By Katharine Houreld

NAIROBI (Reuters) – The U.S. government has suspended $21 million in direct aid to Kenya’s Ministry of Health amid concern over corruption, the embassy said on Tuesday, giving emphasis to an issue that is a growing liability for the government before August elections.

Support for HIV drugs and other health programs outside the ministry would continue, the embassy said, adding that the United States invests more than $650 million on health in Kenya annually.

“We took this step because of ongoing concern about reports of corruption and weak accounting procedures at the Ministry,” the statement from the embassy said. “We are working with the Ministry on ways to improve accounting and internal controls.”

The announcement adds weight to a rising number of scandals plaguing the government of President Uhuru Kenyatta, who is seeking a second and final five-year term in presidential, parliamentary and local elections on Aug. 8.

The so-called Afya House scandal, named after the building housing the Ministry of Health, was based on an audit report leaked to Kenyan media in October.

The audit showed the ministry could not account for 5 billion Kenyan shillings ($49 million) and funds meant for free maternity care had been diverted, newspapers reported.

Officials at Kenya’s anti-corruption commission did not return calls seeking comment on Tuesday, but the ministry of health issued a statement.

“The ministry has been raising matters raised in the internal audit investigations following the Quality Assurance audit by the National Treasury,” the statement said.

“Other autonomous institutions … are undertaking independent investigations.”

Last year, Kenya’s anti-graft chief told Reuters that a third of its state budget – the equivalent of about $6 billion – was lost to corruption every year.

The government disputed the figure, blaming poor paperwork. In October, Kenyatta infuriated voters by telling them he could not tackle corruption because his “hands were tied”. He criticized the judiciary and other agencies for not doing more about the problem.

Kenyan doctors and nurses say the corruption means that hospitals are often left without basic equipment, from drugs to gloves. Kenyan doctors in public hospitals went on strike from December to March, demanding a pay increase and improved working conditions.

(Editing by Larry King)

Judges hit Trump lawyer with tough questions over revised travel ban

FILE PHOTO: A member of the Al Murisi family, Yemeni nationals who were denied entry into the U.S. last week because of the recent travel ban, shows the cancelled visa in their passport from their failed entry to reporters as they successfully arrive to be reunited with their family at Washington Dulles International Airport in Chantilly, Virginia, U.S. February 6, 2017. REUTERS/Jonathan Ernst/File Photo

By Lawrence Hurley

RICHMOND, Va. (Reuters) – Federal appeals court judges on Monday peppered a U.S. Justice Department lawyer with tough questions about President Donald Trump’s temporary ban on travelers from six Muslim-majority nations, with several voicing skepticism that protecting national security was the aim of the policy, not religious bias.

Six Democratic appointees on a court dominated by judges named by Democratic presidents showed concerns about reviving the Republican president’s March executive order that prohibited new visas to enter the United States for citizens of Iran, Libya, Somalia, Sudan, Syria and Yemen for three months.

But three Republican appointees on the Richmond, Virginia-based 4th U.S. Circuit Court of Appeals seemed to lean toward the administration, asking whether the president should be second-guessed when it comes to protecting the country’s borders and whether the plaintiffs bringing the suit had been sufficiently harmed by the order during arguments before 13 judges.

Based on the judges’ questions, a ruling could hinge on whether the appeals court agrees with a lower court judge that past statements by Trump about the need to prevent Muslims from entering the United States should be taken into account. That would be bad news for a young administration seeking victory on one of its first policy changes.

“This is not a Muslim ban,” Acting Solicitor General Jeffrey Wall, arguing for the government, told the judges during the hearing that lasted two hours, twice as long as scheduled.

Judge Robert King, named by Democratic former President Bill Clinton, told Wall that Trump has never retracted previous comments about wanting to impose a ban on Muslims.

“He’s never repudiated what he said about the Muslim ban,” King said, referring to Trump’s campaign promise for a “total and complete shutdown of Muslims entering the United States.”

POLITICAL DEBATE

Wall told the judges past legal precedent holds that the court should not look behind the text of the Trump’s executive order, which does not mention any specific religion, to get at its motivations. He warned that despite the “heated and passionate political debate” about the ban, there was a need to be careful not to set legal precedent that would open the door to broader questioning of presidential decision making on security matters.

Judge Paul Niemeyer, appointed by Republican former President George H.W. Bush, told Omar Jadwat, the American Civil Liberties Union lawyer representing the plaintiffs who challenged the order, that they were asking the court to rule on a president’s national security judgments.

“You have the judiciary supervising and assessing how the executive is carrying out his office,” Niemeyer said, pressing Jadwat, who seemed to stumble at times after pointed questioning by the judges. “I just don’t know where this stops.”

The revised travel ban was challenged in Maryland by refugee organizations and individuals who said they were being discriminated against because they were Muslim and because they had family members adversely affected by the ban. They argue the order violated federal immigration law and a section of the U.S. Constitution’s First Amendment barring the government from favoring or disfavoring a particular religion.

The administration appealed a March 15 ruling by Maryland-based federal judge Theodore Chuang that put the ban on hold just a day before it was due to go into effect.

The arguments marked the latest legal test for Trump’s ban, which also was blocked by federal judge Derrick Watson in Hawaii in a separate legal challenge. An earlier version of the ban was also blocked by the courts.

Chuang, in Maryland, blocked the part of Trump’s order relating to travel by people from the six countries. Watson, in Hawaii, also blocked another part of the order that suspended the entry of refugees into the United States for four months.

‘HOW IS THIS NEUTRAL?’

To a packed audience in the ornate pre-Civil War era courthouse, Judge Pamela Harris said Trump’s action clearly had a disparate impact on Muslims, asking, “How is this neutral in its operation as to Muslims?” Judge Barbara Keenan, who like Harris was appointed by Democratic former President Barack Obama, said the order could affect some 200 million people.

Regardless of how the 13 judges rule, the matter is likely to be decided ultimately by the U.S. Supreme Court. The full 4th Circuit took up the appeal but two Republican-appointed judges did not participate. That left nine judges appointed by Democratic presidents, three Republican appointees and one judge originally appointed by a Democrat and later re-appointed by a Republican.

It was unclear when the court would rule.

Trump issued the March executive order after federal courts blocked an earlier version, issued on Jan. 27 a week after he took office, that also had included Iraq among the nations targeted. That order, which went into effect immediately, triggered chaos and protests at airports and in several cities before being put on hold due to legal challenges.

The second order was intended to overcome the legal problems posed by the original ban.

The administration’s appeal in the Hawaii case will be heard in Seattle on May 15 by a three-judge panel of the San Francisco-based 9th U.S. Circuit Court of Appeals. The three judges assigned all are Democratic appointees.

Wall said the temporary ban was intended to give the government time to evaluate whether people from the six countries were being subjected to adequate vetting to ensure they did not pose a security threat to the United States.

But he said the administration had not been able to proceed on all the work it wanted to do because of the litigation, noting “we have put our pens down.”

(Reporting by Lawrence Hurley; Additional reporting by Mica Rosenberg in New York and Dan Levine in San Francisco; Editing by Will Dunham and Mary Milliken)

With Obamacare vote, House Republicans free to turn to tax reform

U.S. President Donald Trump (C) celebrates with Congressional Republicans in the Rose Garden of the White House after the House of Representatives approved the American Healthcare Act, to repeal major parts of Obamacare and replace it with the Republican healthcare plan, in Washington, U.S., May 4, 2017. REUTERS/Carlos Barria

By David Morgan

WASHINGTON (Reuters) – The Republican-controlled U.S. House of Representatives plans to turn to tax reform in earnest, after concluding a lengthy healthcare debate this week with a vote to repeal and replace Obamacare.

But even as Republicans predicted that tax reform would succeed before year-end, lawmakers encountered new uncertainties about what a final tax package might contain, as well as doubts about whether Republicans will be able to enact reforms without Democratic help.

President Donald Trump and Republicans in Congress have pledged to complete the biggest tax reform since 1986, when President Ronald Reagan was in office, before the end of 2017. But they face an uphill battle, mainly over policy differences within their own ranks.

Thursday’s 217-213 House vote on healthcare legislation raised confidence in the Republican-controlled chamber’s ability to move major legislation after two earlier pushes ended in failure.

But to move forward on tax reform, the House, Senate and Trump administration must agree on where to set tax rates, how to pay for cuts and whether the final package should add to the deficit or pay for itself, all areas where common ground may be hard to find.

A plan to enact reforms without Democratic support will also require Republicans to pass a 2018 budget authorizing the parliamentary process known as reconciliation. But a new budget agreement poses a daunting task given Republican opposition to Trump demands for deep domestic spending cuts.

“That may prove to be one, if not the most difficult votes of the tax reform process,” Jonathan Traub, a managing principal at the consulting firm Deloitte Tax LLP.

Meanwhile, the need to reach agreement between the House, Senate and White House will likely delay introduction of a tax reform bill, which had been expected in early June.

But Republicans say it will ultimately make it easier to enact reforms before the end of the year.

The House Ways and Means Committee, which will unveil the initial tax bill, is still aiming for a revenue-neutral package that raises $2.4 trillion for tax cuts through a new border adjustment tax and elimination of business deductions for net interest payments, both controversial measures.

Panel chairman Kevin Brady told reporters that revenue neutrality is necessary to ensure bold, permanent changes to tax policy that can drive economic growth.

“That’s the argument and the case we’re going to make to the Senate and the Trump administration,” he said.

But Representative Mark Meadows, who chairs the conservative Freedom Caucus that helped block Trump’s first healthcare bill,

voiced opposition to a revenue neutral approach.

“If it’s revenue neutral, you’re not really lowering taxes. You’re shifting the burden,” Meadows told reporters.

The Trump tax plan unveiled last week calls for steep tax cuts financed by government revenues that officials say will result from higher growth. Some fear the plan could add trillions of dollars to the deficit if growth does not materialize.

Meadows said tax cuts should be offset by cuts to entitlement programs including Social Security and Medicare, which Trump has promised not to touch.

(Editing by Alistair Bell)

Trump faces major test as vote looms on U.S. healthcare bill

A cyclist passes the the U.S. Capitol, on the day the House is expected to vote here to repeal Obamacare in Washington, D.C., U.S., May 4, 2017. REUTERS/Kevin Lamarque

By Richard Cowan and Yasmeen Abutaleb

WASHINGTON (Reuters) – The U.S. House of Representatives was set on Thursday for a cliffhanger vote to repeal Obamacare, as Republican leaders worked to deliver President Donald Trump a win for one of his top legislative priorities.

House Republican leaders have expressed confidence the bill would pass and several party moderates who previously objected to the measure got behind it on Wednesday, giving it new momentum.

“We’re optimistic that we’ll pass it out of the House today,” Representative Mark Meadows of North Carolina, chairman of the conservative Freedom Caucus, told MSNBC’s “Morning Joe” program on Thursday.

The vote, which a House Republican aide said was due this afternoon, was expected to be close. Even if the measure passes the House, it faces daunting odds in the Senate where Republicans hold a narrower majority.

“Today is the next step in what is likely to be a very long process,” Republican Representative Michael Burgess of Texas also said on MSNBC.

Keen to score his first major legislative victory since taking office in January, Trump threw his own political capital behind the bill, meeting Burgess and other lawmakers and calling them in an effort to win their support.

Trump, whose Republican party controls both the House and Senate, is seeking to make good on his campaign promise to repeal and replace Obamacare.

Aides said he worked the phones furiously.

Wavering moderate Republicans had worried that the legislation to overhaul President Barack Obama’s 2010 signature healthcare law would leave too many people with pre-existing medical conditions unable to afford health coverage.

But the skeptical Republican lawmakers got behind the bill after meeting with Trump to float a compromise proposal expected to face unanimous Democratic opposition.

The legislation’s prospects brightened after members of the Freedom Caucus, a faction of conservative House lawmakers who played a key role in derailing the original version last month, said they could go along with the compromise.

Millions more Americans got healthcare coverage under Obamacare, but Republicans have long attacked it, seeing it as government overreach and complaining that it drives up costs.

Called the American Health Care Act, the Republican bill would repeal most Obamacare taxes, including a penalty for not buying health insurance. It would slash funding for Medicaid, the program that provides insurance for the poor, and roll back much of Medicaid’s expansion.

The latest effort comes after earlier pushes by Trump collapsed twice, underscoring the difficulty in uniting the various factions of the Republican party.

Earlier this week, prospects for the legislation appeared grim as several influential moderate Republicans said they could not support the bill, citing concerns about people with pre-existing conditions.

House Energy and Commerce Committee Chairman Representative Greg Walden of Oregon on Thursday defended the leaders’ plan to vote on the bill without a new Congressional Budget Office analysis of the costs or impact on coverage, factoring in the recent changes.

“Obviously, it’s a work in progress,” Walden, who also met with Trump on Wednesday, said in a separate MSNBC interview.

House Democrats have rejected the latest change to the Republican legislation, saying it did not go far enough toward protecting people with pre-existing conditions.

“Republicans have made Trumpcare even more dangerous and destructive than the last time they brought it to the floor,” Democratic Leader Nancy Pelosi said to her caucus in a letter late Wednesday night.

Democrats have long thought their best chance of stopping the repeal would be in the Senate, where only a few Republicans would need to defect to stop the law from moving forward.

Republican Meadows told MSNBC he expected the Senate to make changes to the bill that would improve it. The bill would then face a final vote in the House.

With the difficulties in the House, Democrats are optimistic Republicans will face a backlash from voters and could lose seats in the 2018 mid-term elections.

(Additional reporting by David Morgan, Steve Holland, Roberta Rampton, Eric Beech and Susan Heavey; Writing by Ginger Gibson; Editing by Caren Bohan and Jeffrey Benkoe)

Congress passes short-term bill to avert government shutdown

U.S. Senate Minority Leader Chuck Schumer (D-NY) (R) attends a news conference on President Trump's first 100 days on Capitol Hill, next to House Minority Leader Nancy Pelosi (D-CA) in Washington, U.S April 28, 2017. REUTERS/Yuri Gripas

By Richard Cowan

WASHINGTON (Reuters) – The U.S. Congress on Friday passed stopgap legislation to avert a government shutdown at midnight and give lawmakers another week to reach a deal on federal spending through the end of the fiscal year, with contentious issues remaining to be resolved.

The Senate passed the measure by voice vote without opposition after the House earlier approved it by a tally of 382-30. The measure now goes to President Donald Trump to sign into law.

The bill in the Republican-led Congress provides federal funding until May 5, allowing lawmakers to hammer out legislation over the next few days to keep the government funded for the rest of the fiscal year that ends Sept. 30.

Congress has been tied in knots over $1 trillion in spending priorities for months. Lawmakers were supposed to have taken care of the current fiscal year appropriations bills by last Oct. 1.

Senate Majority Leader Mitch McConnell said the stopgap bill “will carry us through next week so that a bipartisan agreement can be reached.”

Senate Democratic leader Chuck Schumer said there were still significant differences with Republicans over elements of the looming longer-term spending bill.

In the bigger spending bill to be negotiated in the coming days, it remained unclear whether Republicans would prevail in their effort to sharply boost defense spending without similar increases for other domestic programs. Trump has proposed a $30 billion spending hike for the Pentagon for the rest of this fiscal year.

House and Senate negotiators also have been struggling over funding to make a healthcare program for coal miners permanent and whether to plug a gap in Puerto Rico’s Medicaid program, the government health insurance program for the poor.

‘IMPORTANT BUSINESS’

During debate in the House, lawmakers expressed frustration at the inability of Congress to take care of the basic functions of government in a timely manner.

“Let’s make sure these basics are done for the American people and then let’s get about the important business of changing their tax code and making sure they have the best healthcare in the world,” said Republican Representative Tom Cole of Oklahoma.

“We are seven months into the fiscal year,” added Representative Nita Lowey of New York, the top Democrat on the House Appropriations Committee. “Federal departments and agencies have been operating on outdated funding levels and policies for more than half of the year. This is unacceptable and it cannot continue.”

Lowey noted the legislation, known as a continuing resolution, was the third stopgap spending measure during the current fiscal year.

In addition to opposition from Democrats, there are deep divisions among Republicans over exactly how to change the tax code and overhaul the U.S. healthcare system.

The action on the spending bill came a day after House Republican leaders again put on hold a possible vote on major healthcare legislation sought by Trump to dismantle the 2010 Affordable Care Act, dubbed Obamacare, after moderates in the party balked at provisions added to entice hard-line conservatives.

The government was last forced to close in October 2013, when Republican Senator Ted Cruz and some of the most conservative House Republicans engineered a 17-day shutdown in an unsuccessful quest to kill former Democratic President Barack Obama’s healthcare law.

Trump, a Republican, bowed to Democratic demands that the spending bill not include money to start building a wall along the U.S.-Mexico border he said is needed to fight illegal immigration and stop drug smugglers.

The Trump administration also agreed to continue funding for a major component of Obamacare despite Republican vows to end the program.

Without the extension or a longer-term funding bill, federal agencies would have run out of money by midnight Friday, likely triggering abrupt layoffs of hundreds of thousands of federal government workers until funding resumes.

(Additional reporting by Amanda Becker and Susan Cornwell; Writing by Will Dunham; Editing by Jeffrey Benkoe and Jonathan Oatis)

Exclusive: ‘If there’s a shutdown, there’s a shutdown,’ Trump says

U.S. President Donald Trump (L) stands in the Oval Office with Chief of Staff Reince Priebus following an interview with Reuters at the White House in Washington, U.S., April 27, 2017. REUTERS/Carlos Barria

By Jeff Mason, Steve Holland and Stephen J. Adler

WASHINGTON (Reuters) – President Donald Trump downplayed the severity of a potential government shutdown on Thursday, just two days shy of a deadline for Congress to reach a spending deal to avert temporary layoffs of federal workers.

“We’ll see what happens. If there’s a shutdown, there’s a shutdown,” Trump told Reuters in an interview, adding that Democrats would be to blame if the federal government was left unfunded.

Congress has until 12:01 a.m. ET on Saturday to pass a bill to fund the government or face a shutdown, which would temporarily lay off hundreds of thousands of federal workers.

Republicans introduced a bill on Wednesday to fund government operations at current levels for one more week, giving them time to finish negotiations with Democrats on the plan for the rest of the fiscal year ending Sept. 30.

Trump said a shutdown would be a “very negative thing” but that his administration was prepared if it was necessary.

In a wide-ranging interview, he defended the one-page tax plan he unveiled on Wednesday from criticism that it would increase the U.S. deficit, saying better trade deals and economic growth would offset the costs.

“We will do trade deals that are going to make up for a tremendous amount of the deficit. We are going to be doing trade deals that are going to be much better trade deals,” Trump said.

Trump also said it would be unfair to offer a debt bailout to Puerto Rico, a U.S. territory, because it was unfair to people in U.S. states.

As part of the budget negotiations, Democrats have called for financial support to prop up Puerto Rico’s Medicaid program covering health insurance for the poor, but many Republicans are opposed to the idea.

“I don’t think that’s fair to the people of Iowa, and I don’t think it’s fair to the people of Wisconsin and Ohio and North Carolina and Pennsylvania that we should be bailing out Puerto Rico for billions and billions of dollars,” Trump said. ” No I don’t think that’s fair.”

(Writing by Julia Edwards Ainsley; Editing by Kieran Murray, Toni Reinhold)

U.S. Republican leaders hunt for votes for healthcare bill

U.S. House Speaker Paul Ryan speaks about healthcare at his weekly press briefing on Capitol Hill in Washington, U.S, April 27, 2017. REUTERS/Yuri Gripas

By Susan Cornwell

WASHINGTON (Reuters) – House Republicans were making headway in efforts to build support for a reworked plan to overhaul the U.S. healthcare system, but have not decided when to vote, House Speaker Paul Ryan said on Thursday.

Ryan spoke as Republican leaders scoured the U.S. Capitol in search of centrist Republican backing for the amended measure after it gained the approval on Wednesday of a group of hard-right Republican conservatives who had helped to sink the original version last month.

“We’re making very good progress,” Ryan told reporters at a news conference, saying the changes endorsed by conservative Freedom Caucus Republicans on Wednesday would also appeal to moderate Republicans.

The House could vote as early as this week on the legislation, aides said, meaning it could pass the House in time for President Donald Trump’s 100th day in office on Saturday.

It remained unclear whether the amended bill could attract the 216 votes needed to pass the House, given the united Democratic opposition. Its future is further clouded in the Senate.

“We’re going to go when we have the votes,” Ryan said.

Republicans in Congress have made repealing and replacing the Affordable Care Act, commonly known as Obamacare, a central campaign promise for seven years. Republican President Donald Trump made it a top campaign promise.

But House Republicans are not keen to repeat last month’s debacle, when their leaders acquiesced to Trump’s demand for a floor vote on the bill, only to unceremoniously yank the measure after determining it could not pass.

The Republican healthcare bill would replace Obamacare’s income-based tax credit with an age-based credit, roll back an expansion of the Medicaid government health insurance program for the poor and repeal most Obamacare taxes.

The nonpartisan Congressional Budget Office had estimated 24 million fewer people would have insurance under the original version.

The new amendment that has won over a number of conservatives, drafted by Representative Tom MacArthur, would allow states to seek federal waivers to opt out of some of the law’s provisions. That includes the highly popular provision mandating that insurers charge those with pre-existing conditions the same as healthy consumers, and that insurers cover so-called essential health benefits, such as maternity care.

Some centrists say the changes do not address their worries that the bill would hurt poor Americans in the Medicaid program. Others, including Republican Representative Dan Donovan of New York, said the loosening of protections for people with pre-existing medical conditions was a major problem.

“It’s going to cost people with pre-existing conditions even more money to have coverage … It’s something that we shouldn’t be doing,” Donovan said on CNN.

House Democrats on Thursday threatened to oppose a short-term government funding bill if the Republicans try to bring the healthcare bill to the floor this week.

Ryan brushed off this threat, even though Republicans are expected to need some Democratic votes to pass the funding bill.

House Democratic Leader Nancy Pelosi told reporters that Trump was making Republicans “walk the plank” on a healthcare bill that was “wildly unpopular.”

Ryan dismissed the idea that some Republican lawmakers’ House seats were at risk if they vote for the healthcare bill. “I think people’s seats are at risk if we don’t do what we said we would do” and repeal Obamacare, he said.

(Reporting by Susan Cornwell and Susan Heavey; Additional reporting by Amanda Becker and Will Dunham; Editing by Jeffrey Benkoe)

Brazil indigenous protest over land rights turns violent

Brazilian Indians take part in a demonstration against the violation of indigenous people's rights, in Brasilia, Brazil April 25, 2017. REUTERS/Ueslei Marcelino

BRASILIA (Reuters) – Indigenous people and police clashed in Brazil’s capital city on Tuesday, as officers fired rubber bullets and tear gas while tribe members shot arrows in return during a protest against farmers’ encroachment on reservations.

The demonstration was peaceful until police blocked some of the indigenous people, their bodies painted and wearing colorful headdresses, from climbing a ramp that led into the congressional building, according to a Reuters photographer on the scene.

The clashes ended around dusk. Some indigenous people suffered light injuries. There was no immediate word whether any officers were hurt.

Dozens of indigenous people are killed each year in Brazil in fights with farmers and ranchers over land, often in the relatively lawless Amazon region, where hired gunmen have been used to push the indigenous off resource-rich reserves.

Sonia Guajajara, a coordinator for the march, said some 4,000 indigenous people and supporters took part in the protest.

It focused on legislation that would give the last word on deciding land boundaries for indigenous reservations to Congress, where a powerful farm lobby holds sway. Currently, Brazil’s president retains the power to set such boundaries.

“We carried 200 coffins symbolizing the genocide and deaths of indigenous peoples at the hands of the authorities allied to agribusiness,” Guajajara said.

She said the violent police response was nothing compared to that suffered by indigenous people in territories where deadly clashes continue over disputed land.

A police spokesman said the marchers went beyond the agreed point and invaded congressional grounds, requiring the use of force to keep them from entering the building. He said an arrow struck a police bag but no officers were hurt.

(Reporting by Ueslei Marcelino and Anthony Boadle; Editing by Jonathan Oatis)