On Day 28, no sign of end to U.S. partial government shutdown

Long lines are seen at a Transportation Security Administration (TSA) security checkpoint at Hartsfield-Jackson Atlanta International Airport amid the partial federal government shutdown, in Atlanta, Georgia, U.S., January 18, 2019. REUTERS/Elijah Nouvelage

By James Oliphant

WASHINGTON (Reuters) – As the partial U.S. government shutdown hit the four-week mark on Friday, tensions mounted in Washington on either side of the standoff over President Donald Trump’s demand for $5.7 billion to help fund a U.S.-Mexico border wall.

That ultimatum, which congressional Democrats have rejected, has prevented Congress from approving legislation to restore funding to about a quarter of the federal government, which closed down partially on Dec. 22 when several agencies’ funds expired for reasons unrelated to the border.

The Democratic-led House of Representatives has left town for a three-day weekend, returning late on Tuesday. The Senate was expected to reconvene on Friday, but its exact plans were unsettled.

The Republican-controlled Senate, toeing Trump’s line on the wall, has not acted on any of several shutdown-ending bills approved in recent days by the House, all lacking wall funding.

The partial shutdown – already the longest in U.S. history – seemed certain to drag well into next week, meaning 800,000 federal workers nationwide would continue to go unpaid and some government functions would remain impaired.

Any serious debate about immigration policy has deteriorated into a test of political power. After House Speaker Nancy Pelosi suggested to Trump that he delay the annual State of the Union address until after the government reopens, Trump responded by denying Pelosi and a congressional delegation use of a military aircraft for a planned trip to Belgium and Afghanistan.

Trump’s intervention stopped the trip just as Pelosi and other lawmakers were about to travel.

Pelosi’s spokesman said on Friday that the congressional delegation had been prepared to fly commercially after the military plane was revoked, but learned the administration had also leaked the commercial travel plans.

“In light of the grave threats caused by the President’s action, the delegation has decided to postpone the trip so as not to further endanger our troops and security personnel, or the other travelers on the flights,” Drew Hammill wrote on Twitter.

Hammill said the State Department had to pay for the commercial flight, which was how the White House knew about the travel plans that Hammill said were leaked.

A White House official, speaking on condition of anonymity, denied leaking the travel plans, adding, “When the speaker of the House and about 20 others from Capitol Hill decide to book their own commercial flights to Afghanistan, the world is going to find out.”

In tweets on Friday, Trump reiterated his claim that farmworkers would still be able to enter the country and stressed again his demand for the border wall, which he says is needed to stem illegal immigration and drug trafficking. Democrats have resisted the wall as wasteful and unworkable.

The House has passed short-term spending bills that would end the shutdown and reopen the government, but Republican Senate Majority Leader Mitch McConnell has refused to allow a floor vote on them, saying they lacked White House support.

A House Republican aide told Reuters on Thursday that no back-channel talks to resolve the shutdown were taking place.

During the week, a small group of Senate Republicans sought support for a plan to urge Trump to agree to a short-term funding bill in exchange for a debate on border security. Their efforts went nowhere.

The Trump administration worked to minimize the damage being done to government operations across the country. On Thursday, the State Department said it was calling furloughed employees back to work.

(Reporting by James Oliphant; additional reporting by Richard Cowan, Susan Cornwell, Jeff Mason and Makini Brice; editing by Kevin Drawbaugh, Peter Cooney and Jonathan Oatis)

U.S. shutdown turns Washington into ghost town during quiet travel season

FILE PHOTO: A skier makes his way toward the U.S. Capitol, on Day 24 of the government shutdown in Washington D.C., U.S., January 14, 2019. REUTERS/Kevin Lamarque

By Gabriella Borter

(Reuters) – Washington hotels have cleared out entire floors. Restaurants have considered taking out loans to stay open. Phones have stopped ringing at tour companies.

In the nation’s capital, where more than 20 million tourists typically visit each year, the longest government shutdown in U.S. history has threatened businesses that depend on the patronage of government workers and the attraction of federal monuments and museums to bring in tourists.

“It definitely feels like the phone should be ringing more,” said Adam Plescia, owner of Custom Tours of DC. “I think people are apprehensive about booking in the near future.”

January is typically a slow month for DC tourism, a lull between the holiday season and the March cherry blossom festival.

But the quiet is deafening this year, as the government shutdown pushes into its 26th day over U.S. President Donald Trump’s demand for $5.7 billion to build a wall along the U.S.-Mexican border.

All 17 Smithsonian museums in the city are closed. The White House is closed to tourists. The outdoor monuments on the National Mall, while still accessible, might have less appeal among the overflowing trash cans and litter that the National Parks Service has not collected since being furloughed.

Yohannes Zekele, who operates van and walking tours of the city as the owner of Washington DC Legend Tours, said he has not received calls for tour bookings in days. He often gives tours to lobbyists or professionals who visit the capital for conferences, but those people have few reasons to visit while many federal agencies remain shuttered.

“That’s a major impact,” Zekele said.

To be sure, the shutdown failed to keep all tourists away but at least some of those who came to the capital were disappointed.

Sharmayne Whitter, 38, a teacher from Birmingham, England, braved the winter weather to take a photo with a friend outside the White House. Washington was the last stop on a four-week road trip along the East Coast that was planned before she found out about the shutdown. Whitter said she blames Trump for the missed sightseeing opportunities.

This a once in a lifetime opportunity, so he’s kind of limited our chances to experience America as it should be and the beautiful land that it is. So because of his choices, he’s kind of spoiling it for the rest of the world. she said. Local restaurants have seen a “drastic decline” in business due to fewer tourists and furloughed workers choosing not to dine out, according to Kathy Hollinger, President and CEO of the Restaurant Association of Metropolitan Washington.

“In attempts to not shutter completely, restaurants have had to reduce hours, shifts, and some are considering being open one less day a week, because there isn’t enough business,” Hollinger said in a statement.

The local restaurant community had suffered an average 20 percent drop in sales over the course of the shutdown, with some restaurants reporting a drop of as much as 60 percent drop, Hollinger said.

Some restaurant institutions have considered taking out loans and some hotels have had to clear out entire floors, according to a survey conducted by the Restaurant Association.

Hotel occupancy was down more than 8 percent the week of Dec. 30 to Jan. 5 compared with the same week last year, according to the most recent findings by Destination DC, an independent tourism marketing organization.

Destination DC compiles visitation statistics annually, so it is too soon to measure how much the shutdown has affected the local tourism industry, Destination DC spokeswoman Danielle Davis said.

In 2017, 22.8 million tourists visited the city and spent $7.5 billion.

(Reporting by Gabriella Borter in New York; Additional reporting by Katharine Jackson; Editing by Frank McGurty and Susan Thomas)

Trump to meet lawmakers at White House as shutdown enters 25th day

FILE PHOTO: U.S. President Donald Trump speaks during a "roundtable discussion on border security and safe communities" with state, local, and community leaders in the Cabinet Room of the White House in Washington, U.S., January 11, 2019. REUTERS/Leah Millis

WASHINGTON (Reuters) – President Donald Trump will meet members of Congress at the White House on Tuesday as the partial U.S. government shutdown enters a 25th day without resolution amid a standoff over border wall funding.

Trump is scheduled to host the lawmakers for lunch, according to his public schedule, which did not say who was attending. Moderate House Democrats were invited, CNN and Politico reported.

Representatives for the White House and congressional leaders did not immediately respond to a request for comment.

Neither Trump nor Democratic leaders in Congress have shown signs of bending on wall funding but the Washington Post on Monday reported a new bipartisan group of U.S. senators is searching for an agreement that could help end the partial shutdown.

Trump, who has demanded $5.7 billion from Congress to build his long-promised wall along the U.S.-Mexican border, on Monday rejected a call by fellow Republicans to temporarily reopen the government while talks continue on border security issues.

He campaigned in 2016 on a promise of building a wall to stop illegal immigration and drug trafficking and more recently raised the possibility of declaring a national emergency to go around Congress to secure funding for the wall. In recent days, however, he has said that he would prefer Congress to act.

Democrats, who took over the U.S. House of Representatives this month, have rejected the border wall but back other border security measures.

House Democrats have passed a number of bills to fund the roughly one-quarter of federal operations that have been closed, but Senate Majority Leader Mitch McConnell, a Republican, has said the chamber will not consider legislation that Trump will not sign into law.

Senate Democratic Leader Chuck Schumer on Monday called on McConnell to move forward, suggesting that Congress go around the president.

The partial shutdown is the longest in U.S. history and its effects have begun to reverberate across the country.

Longer lines have formed at some airports as more security screeners fail to show up for work while food and drug inspections have been curtailed and farmers, stung by recent trade spats, have been unable to receive federal aid.

The shutdown began on Dec. 22 and its impact is worrying some on Wall Street. Roughly 800,000 federal employees are feeling the financial sting after missing their first paycheck last week, a loss of income expected to have ripple effects.

Speaking on CNBC, Delta Air Lines Inc Chief Executive Officer Ed Bastian said the partial shutdown will cost the airline $25 million in lost revenue in January because fewer government contractors are traveling.

Other U.S. airlines also are not able to open new routes or use new airplanes because they need certification from federal officials who are furloughed.

A number of companies, already concerned about a global economic uncertainty, also have urged Republicans and Democrats to end the stalemate in Washington.

(Reporting by Susan Heavey; Editing by Steve Orlofsky and Bill Trott)

U.S. government shutdown drags into fourth week amid stalemate

Travelers wait in a security line at Reagan Washington National Airport in Arlington, Virginia, U.S., January 13, 2019. REUTERS/David Shepardson

WASHINGTON (Reuters) – A partial government shutdown entered its 24th day on Monday as talks between U.S. President Donald Trump and congressional Democrats remained stalled even as some of Trump’s fellow Republicans called on the president to cut a deal and strains mounted nationwide.

Trump appeared unmoved to act, however, retweeting criticism of House Speaker Nancy Pelosi and Senate Democratic Leader Chuck Schumer that urged the top Democratic leaders to negotiate with him over funding for his long-promised wall along the U.S.-Mexico border.

“I’ve been waiting all weekend. Democrats must get to work now. Border must be secured!” Trump wrote in an early morning tweet on Monday.

Democrats have rejected Trump’s demand for $5.7 billion for the border wall in addition to other border funds but have said they would support $1.3 billion to bolster border security in other ways, including beefing up the number of Border Patrol agents and increasing surveillance.

About one-quarter of the U.S. government shut down last month as Republicans controlled both chambers of Congress as well as the White House. In December Trump said he would take responsibility for the shutdown but has since shifted the blame to Democrats. A growing proportion of Americans blame Trump for the closures, a Reuters/Ipsos poll found.

He now must win concessions from the Democrats, who took over the U.S. House of Representatives this month following November’s elections. He also must win over enough Senate Democrats to secure the 60 votes needed to pass funding legislation there.

The stress from the shutdown became more visible as 800,000 federal employees across the United States missed their first paychecks on Friday. The cut government services also affected travelers as a jump in unscheduled absences among federal airport security screeners forced partial closures of airports in Houston and Miami.

National parks also remain shuttered, food and drug inspections have been curtailed and key economic data is on hold, among other impacts. Federal courts are set to run out of money on Friday.

ADDRESS TO FARMERS

Later on Monday, Trump is scheduled to address a New Orleans gathering of farmers, a key bloc of Trump supporters who have been hit by the shutdown as federal loan and farm aid applications have stalled and key farming and crop data has been delayed.

Republican U.S. Senator Lindsey Graham, who last week had called on Trump to declare a national emergency as a way to get money to build his wall, on Sunday urged the president to instead reopen the government for a short period of time in an effort to restart talks before taking such action.

Declaring a national emergency over immigration issues is fiercely opposed by Democrats and remains unpopular with some Republicans. It also would likely face an immediate legal challenge.

Pelosi called on the Republican-led Senate to vote on several bills passed earlier this month by the House to fund affected departments that do not include money for Trump’s wall. Senate Majority Leader Mitch McConnell has said he will not take up any legislation that does not have Trump’s support.

Representatives for Schumer could not be immediately reached for comment on Monday.

Both the Senate and the House were scheduled to reconvene on Monday afternoon, despite a weekend winter storm shuttered much of the Washington area and it remained unclear what, if any, steps lawmakers might take to address the lapsed funding measures for affected agencies.

Senator Chris Coons on Monday reiterated fellow Democrats’ call for Trump to reopen the government while negotiations over the wall and immigration continue.

He acknowledged efforts by Graham and other Republicans to forge a temporary solution but said Trump has been unpredictable even among fellow conservatives with ever-shifting positions.

“Every time they make progress, the president throws cold water on it,” Coons told CNN in an interview.

(Reporting by Susan Heavey; Editing by Steve Orlofsky and Bill Trott)

As U.S. shutdown ties record, Trump weighs emergency declaration

President Donald Trump salutes a U.S. Border Patrol helicopter as he stands with U.S. Border Patrol agents as it flies over the Rio Grande River during his visit to the U.S. - Mexico border in Mission, Texas, U.S., January 10, 2019. REUTERS/Leah Millis

By Richard Cowan

WASHINGTON (Reuters) – President Donald Trump, facing the prospect of the longest U.S. government shutdown in history, is considering declaring a national emergency that would likely escalate a policy dispute with Democrats over his proposed U.S.-Mexico border wall into a court test of presidential power.

To escape a political trap of his own making, Trump on Thursday suggested that he might declare an emergency so he can bypass Congress to get funding for his wall, which was a central promise of his 2016 election campaign.

As the partial government shutdown entered its 21st day on Friday, Trump reiterated his claim in an early-morning tweet, saying Mexico would indirectly pay for the wall, without offering any evidence. It would become the longest U.S. shutdown on Saturday.

He originally pledged Mexico would pay for the wall, which he says is needed to stem the flow of illegal immigrants and drugs. But the Mexican government has refused. Trump is now demanding that Congress provide $5.7 billion in U.S. taxpayer funding for the wall.

Democrats in Congress call the wall an ineffective, outdated answer to a complex problem. The standoff has left a quarter of the federal government closed down and hundreds of thousands of federal employees staying home on furlough or working without pay set to miss their paychecks.

With no Capitol Hill compromise in sight, Trump publicly ruminated on Thursday during a trip to the Texas border about declaring an emergency.

A close Trump confidant judged the time for such a step had come. Republican Senator Lindsey Graham said in a statement: “It is time for President Trump to use emergency powers to fund the construction of a border wall/barrier. I hope it works.”

The Wall Street Journal, NBC and the Washington Post, citing unnamed sources, reported that the White House had asked the U.S. Army Corps of Engineers to look into diverting money from its budget toward the wall and to explore how fast construction could begin under an emergency declaration. Reuters could not immediately verify the accuracy of the reports.

BOXED IN

Critics of the national emergency strategy have said it may be illegal. In any case, it was almost certain to trigger an immediate court challenge from Democrats, including an accusation of trying to circumvent Congress’ power over the national purse strings.

That would push the wall impasse into the courts, allowing the government to be fully reopened while the judges weigh the case, which could take months.

“After the emergency announcement, the path toward construction via executive order may be as unclear as a storm at midnight. But it will at least allow the president to move out of the corner he’s boxed himself into,” said Charles Gabriel, analyst at strategy firm Capital Alpha Partners.

Partial government funding expired on Dec. 22, leaving departments ranging from Justice, Agriculture and Treasury to Commerce and Homeland Security without money to operate programs and pay their workers.

An emergency declaration would come with risks. Even some of Trump’s fellow Republicans in Congress have signaled worries about such an action. Given that the Constitution gives Congress the power to set spending priorities and appropriate money, they worry about a tough legal fight and an unwise precedent.

‘CROSSING THE RUBICON’

“If Trump crosses this Rubicon, what would prevent a Democratic president from declaring a ‘national emergency’ on Day 1 of their administration on climate change and/or healthcare?” Chris Krueger, an analyst at strategy firm Cowen Washington Research Group, asked in a commentary note.

Senator Joe Manchin, a moderate Democrat who has had good relations with Trump, said declaring a national emergency would be “wrong, but I think that’s his only way out.”

Manchin predicted that if Trump made the declaration, Congress would immediately move to pass bills funding the various agencies, knowing that the president would then be able to sign them into law.

While some Republican senators have begun clamoring for an end to the shutdown, party leaders toeing Trump’s line this week have ignored passage in the Democratic-controlled House of Representatives of funding bills for government agencies. The House was expected to pass more such bills on Friday.

(Reporting by Richard Cowan; Additional reporting by Susan Heavey; Editing by Kevin Drawbaugh and Peter Cooney)

House Democrats to test Republicans on Trump’s wall demand

U.S. House Speaker Nancy Pelosi (D-CA) arrives for a House Democratic party caucus meeting at the U.S. Capitol in Washington, U.S. January 9, 2019. REUTERS/Jonathan Ernst

By Richard Cowan

WASHINGTON (Reuters) – On the 19th day of a partial U.S. government shutdown, Democrats were set on Wednesday to test Republicans’ resolve in backing President Donald Trump’s drive to build a wall on the border with Mexico, which has sparked an impasse over agency funding.

House of Representatives Speaker Nancy Pelosi and her fellow Democrats, who took control of the chamber last week, plan to advance a bill to immediately reopen the Treasury Department, the Securities and Exchange Commission and several other agencies that have been partially shut down since Dec. 22.

Democrats are eager to force Republicans to choose between funding the Treasury’s Internal Revenue Service – at a time when it should be gearing up to issue tax refunds to millions of Americans – and voting to keep it partially shuttered.

In a countermove, the Trump administration said on Tuesday that even without a new shot of funding, the IRS would somehow make sure those refund checks get sent.

White House spokeswoman Sarah Sanders told Fox News on Wednesday that Trump was still considering a declaration of a national emergency to circumvent Congress and redirect government funds toward the wall.

The Republican president’s push for a massive barrier on the border has dominated the Washington debate and sparked a political blame game as both Trump and Democrats remain dug in.

In a nationally televised address on Tuesday night, Trump asked: “How much more American blood must be shed before Congress does its job?” referring to murders he said were committed by illegal immigrants.

Senate Republican leader Mitch McConnell opened the Senate on Wednesday with an attack on Democrats for not supporting Trump’s demand for $5.7 billion for the wall.

But Senate Democratic leader Chuck Schumer said Trump’s speech was a rehash of spurious arguments and misleading statistics.

“The president continues to fearmonger and he makes up the facts,” Schumer said.

DEMOCRATIC TACTICS

Later in the week, Pelosi plans to force votes that one-by-one provide the money to operate departments ranging from Homeland Security and Justice to State, Agriculture, Commerce and Labor.

By using a Democratic majority to ram those bills through the House, Pelosi is hoping enough Senate Republicans back her up and abandon Trump’s wall gambit.

The political maneuvering comes amid a rising public backlash over the suspension of some government activities that has resulted in the layoffs of hundreds of thousands of federal workers.

Other “essential” employees are being required to report to work, but without pay for the time being.

As House Democrats plow ahead, Trump and Vice President Mike Pence will go to Capitol Hill on Wednesday to attend a weekly closed lunch meeting of Senate Republicans.

They are expected to urge them to hold firm on his wall demands, even as some are publicly warning their patience is wearing thin.

Later in the day, Trump is scheduled to host bipartisan congressional leaders to see if they can break the deadlock. On Thursday, Trump travels to the border to highlight an immigration “crisis” that his base of conservative supporters wants him to address.

With tempers running high over Trump’s demand for $5.7 billion just for this year to fund wall construction, there are doubts Pelosi’s plan will succeed in forcing the Senate to act.

McConnell has not budged from his hard line of refusing to bring up any government funding bill that does not have Trump’s backing even as a few moderate members of his caucus have called for an end to the standoff.

The funding fight stems from Congress’ inability to complete work by a Sept. 30, 2018, deadline on funding all government agencies. It did, however, appropriate money for about 75 percent of the government by that deadline – mainly military and health-related programs.

(Reporting by Richard Cowan; Additional reporting by Amanda Becker and Susan Heavey; Editing by Bill Trott and Alistair Bell)

FEMA reverses decision to stop issuing new flood insurance policies

A mailbox is partially submerged by flood waters in the aftermath of Hurricane Florence in Conway, South Carolina, September 19, 2018. REUTERS/Randall Hill. REUTERS/Randall Hill

WASHINGTON (Reuters) – The Federal Emergency Management Agency (FEMA) said on Friday it will resume issuing new flood insurance policies during the partial U.S. government shutdown, reversing a decision announced two days ago.

FEMA, which oversees the National Flood Insurance Program, said it was rescinding guidance issued on Wednesday that it would not be able to sell new policies during the shutdown unless Congress passes legislation reauthorizing the program.

“As of this evening, all NFIP insurers have been directed to resume normal operations immediately and advised that the program will be considered operational since December 21, 2018, without interruption,” FEMA said on its website.

The National Association of Realtors estimated the decision not to issue new policies could have disrupted up to 40,000 home sales each month.

The flood insurance program insures about 5 million homes and businesses.

The federal government has been partially shut down since Dec. 22 because of an impasse over President Donald Trump’s demand for $5 billion in taxpayer funding for a proposed border wall.

(Reporting by Eric Beech, editing by G Crosse)

Maine, New Jersey lawmakers scramble to end partial government shutdowns

A "Park Closed" sign is seen at an entrance to Liberty State Park during a partial state government shutdown in Jersey City, New Jersey U.S., July 3, 2017.

By Elinor Comlay and Chris Kenning

(Reuters) – Partial government shutdowns in Maine and New Jersey stretched to a second day on Sunday as lawmakers returned to their respective state capitals in a bid to break budget impasses that have led to the suspension of many nonessential services.

In Maine, a bipartisan budget committee met in Augusta in hopes of breaking a stalemate between Republican Governor Paul LePage and Democratic lawmakers. The shutdown came after LePage threatened to veto a compromise reached by lawmakers in the state’s $7.055 billion, two-year budget.

At New Jersey’s statehouse in Trenton, there was little evidence of progress in resolving a fight over a health insurance bill that Republican Governor Chris Christie said must be passed alongside the state’s budget.

Maine state police, parks and all offices responsible for collecting revenue planned to operate during the shutdown, the state’s first since 1991, but the majority of 12,000 state employees will be furloughed.

New Jersey residents were not so lucky. With the July 4 holiday weekend in full swing, the shutdown there included the closure of Island State Beach Park, one of New Jersey’s few free public beaches, and all other state parks.

Although he beach park was closed to the public, Christie took a state helicopter on Saturday to a gubernatorial residence there to be with family and said he would go back on Sunday night.

“That’s just the way it goes. Run for governor, and you have can have a residence there,” he said when pressed on the issue.

At a news conference on Sunday afternoon, the governor said he had not spoken since Friday to Democratic holdouts.

The impasse could mean a furlough for 30,000 to 35,000 state employees on Monday.

In Maine, the stalled budget proposal would have repealed a measure voters approved in November for a 3 percent income tax hike on residents earning more than $200,000 a year. It also contained a 1.5 percent increase in the lodging tax, while increasing funding for public education by $162 million.

LePage has promised to veto any spending plan that raises taxes.

A six-member bipartisan House-Senate budget panel huddled into the evening on Sunday seeking to reach a deal that would win the two-thirds vote needed for passage of an emergency budget bill in both legislative chambers.

Mary-Erin Casale, a spokeswoman for Democratic House Speaker Sara Gideon, said a new compromise could be ready for a vote as early as Monday morning, about the time state employees planned to protest the shutdown at the capitol.

A spokeswoman for the governor could not be reached for comment on Sunday.

 

HEALTH INSURANCE STALEMATE

At the center of New Jersey’s stalemate was a plan by Christie to shake up the state’s largest health insurer, Horizon Blue Cross Blue Shield, which he said lacked sufficient transparency and spent too much on salaries.

He threatened to cut $150 million in school funding and other items unless lawmakers adopt his proposal, which would redirect some of Horizon’s reserves to drug addiction treatment and other services.

Christie offered to hear Democrats’ proposals for breaking the impasse, saying: “It should end today,” but acknowledged a settlement was unlikely so soon.

Christie, a former presidential contender whose reputation was tarnished by the Bridgegate traffic scandal involving some of his closest aides, ranks as the least popular governor in state history. He is in his second and final term.

Assembly Speaker Vincent Prieto and other Democrats have criticized the Horizon bill as “bad public policy,” insisting that it be considered after the budget is passed.

Christie blamed Prieto for the shutdown and vowed on Sunday to stand by the Horizon bill, saying: “I got elected by a lot more people than Vinnie Prieto did.”

 

(Reporting by Elinor Comley in Atlantic City, N.J., and Chris Kenning in Chicago; Editing by Frank McGurty and and Peter Cooney)