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 leaders in a rare display of bipartisanship, reach $300 billion federal spending deal

U.S. Sen. Lindsay Graham speaks to reporters outside the Senate chamber on Capitol Hill in Washington, U.S. February 7, 2018.

By Richard Cowan and Amanda Becker

WASHINGTON (Reuters) – U.S. congressional leaders, in a rare display of bipartisanship, on Wednesday reached a two-year budget deal to raise government spending by almost $300 billion, attempting to curb Washington’s fiscal policy squabbling but also widening the federal deficit.

The agreement, announced by the Republican and Democratic leaders of the Senate and House of Representatives, would lift caps on defense funding and some domestic spending. It also would postpone a reckoning with the federal debt limit.

Along with President Donald Trump’s tax cuts that were approved by Congress in December, the new round of spending would further add to the bulging deficit and may face resistance in the House from Democrats as well as Republican fiscal hawks.

“This bill is the product of extensive negotiations among congressional leaders and the White House,” Senate Majority Leader Mitch McConnell, a Republican, said on the Senate floor.

The plan will need to be passed in the House and the Senate, both controlled by Trump’s fellow Republicans, before it can be sent to the White House for the president to sign into law.

House Democrats have warned they will not back the deal unless Republican House Speaker Paul Ryan promises to advance separate legislation on immigration policy.

Chuck Schumer, leader of the Senate Democrats, touted the deal, saying, “It should break the long cycle of spending crises that have snarled this Congress and hampered our middle class.”

The defense spending increase in it should allow Trump to make good on his campaign promise for a military build-up.

The White House said the deal includes an extension, until March 2019, of the government’s debt ceiling. The Treasury Department has been warning that without an extension in borrowing authority from Congress, the government would run out of borrowing options in the first half of next month, risking an unprecedented debt default.

The agreement also funds disaster relief, infrastructure and programs addressing opioid abuse, the Senate leaders said.

DEFICIT INCREASE

White House legislative affairs director Marc Short said the deal would increase spending by “just shy” of $300 billion.

A senior congressional aide said this amount of additional spending would not be offset by any spending cuts or new tax revenue, meaning an increase in the federal deficit.

“This really is the moment where it has become clear that despite record levels of debt and approaching trillion dollar deficits, Congress has stopped caring about what they’re doing to the fiscal health of the country,” said Maya MacGuineas, head of the Committee for a Responsible Federal Budget, a group that advocates for long-term fixes to Washington’s debt problems.

Aside from the budget deal, lawmakers were also trying to reach agreement by Thursday to avoid a government shutdown and fund the government until March 23. If that fails, the U.S. government would suffer its second shutdown this year, after a partisan standoff over immigration policy led to a three-day partial shutdown last month.

In financial markets, yields on benchmark 10-year notes rose on news of the budget deal, on expectations of higher growth and potentially greater Treasury supply.

A large uptick in issuance is expected after Congress raises the debt ceiling, which along with higher inflation expectations has weighed on bonds in the past week.

A congressional source familiar with the agreement said it would increase non-defense spending by $131 billion and include $20 billion for infrastructure spending. It also would extend funding for the Children’s Health Insurance Program (CHIP) for 10 years instead of the current six, the source added.

Passage of the plan would ease the brinkmanship over spending that roils Washington so regularly that financial markets barely flinch at the threat of a government shutdown.

Immigration again emerged as a possible point of contention. House Democratic leader Nancy Pelosi, who helped negotiate the accord, nevertheless said she would oppose it unless Ryan promises to advance legislation to protect hundreds of thousands of young adult immigrants, known as “Dreamers,” brought to the United States illegally as children.

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

Republicans are eager to keep spending and immigration separate. 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.

(Additional reporting by David Morgan, Susan Heavey and Doina Chiacu in Washington and April Joyner in New York; Writing by Alistair Bell; Editing by Will Dunham)

A look at Washington’s battle of the Russia classified memos

A copy of the formerly top secret classified memo written by House Intelligence Committee Republican staff and declassified for release by U.S. President Donald Trump is seen shortly after it was released by the committee in Washington, February 2, 2018.

By Patricia Zengerle

WASHINGTON (Reuters) – The White House must decide this week whether to clear the release of a classified memo written by Democrats. The document aims to rebut a Republican memo alleging FBI and Justice Department bias against President Donald Trump in a federal probe into potential collusion between his 2016 presidential campaign and Russia.

The following explains what is in play in a partisan dispute roiling Washington.

WHAT IS THE REPUBLICAN MEMO?

The four-page document was commissioned by Representative Devin Nunes, the Republican chairman of the House of Representatives Intelligence Committee, and released on Feb. 2.

It accused senior Federal Bureau of Investigation and Justice Department officials of not revealing that portions of a dossier of alleged Trump-Russia contacts used in seeking a secret Foreign Intelligence Surveillance Court warrant to eavesdrop on former Trump campaign aide Carter Page were partly paid for by Democrats.

It also portrayed former British spy Christopher Steele, who compiled the dossier, as biased, saying he “was desperate that Donald Trump not get elected and was passionate about him not being president.”

WHAT IS THE DEMOCRATIC MEMO?

In late January, House Intelligence Committee Democrats said they had drafted their own classified 10-page memo about the investigation of Russia and the 2016 U.S. election. They said their document would counteract what they criticized as “highly misleading” assertions in the Republican memo.

While Republicans on the intelligence panel initially blocked Democrats’ effort to release their memo, they joined Democrats on Feb. 5 and allowed the Democratic document to be sent to the White House for Trump to decide whether to release it.

WHY DOES IT MATTER?

Democrats say the Republican memo could be used by Republicans to try to undermine the credibility of Special Counsel Robert Mueller’s federal investigation into possible collusion between Trump’s presidential campaign and Russia to help him win the election.

Mueller’s investigation also is examining whether Trump has committed obstruction of justice by trying to thwart the Russia probe, which has cast a cloud over his year-old presidency.

Democrats say Trump’s allies hope to use the memo to protect Trump. They believe it could give the president, who fired FBI Director James Comey in May, an excuse to fire Deputy U.S. Attorney General Rod Rosenstein, who hired Mueller, or even to dismiss Mueller himself.

U.S. intelligence agencies have concluded that Russia interfered in the 2016 presidential campaign using hacking and propaganda, an effort that eventually included attempting to tilt the race in Trump’s favor.

Moscow has denied meddling and Trump has denied collusion or any obstruction of justice. He has called the investigation a witch hunt.

WHAT ARE THE POSSIBLE CONSEQUENCES OF THE MEMOS?

The release of the Republican memo widened the divide between Democrats and Republicans, possibly diminishing the credibility of any findings by congressional panels that are also investigating the Russia matter.

Its release also threatened to weaken long-standing cooperation between lawmakers and intelligence agencies, which have shared classified information with Congress with the understanding that it would never be made public.

If Trump declines to declassify and release the Democrats’ memo, it could set up a dispute that would pit the White House and many of Trump’s fellow Republicans in Congress against Democrats, law enforcement and intelligence agencies.

WHAT ROLE DOES THE INTELLIGENCE COMMITTEE PLAY?

The House Intelligence Committee is one of three congressional panels investigating the Russia issue even as Mueller pursues his criminal probe. The dispute over the memo has deepened a partisan divide on the panel, whose Democratic members accuse Republicans of seeking to focus on the Steele dossier and Page surveillance to protect Trump. Republicans say they merely want to publicize wrongdoing.

(Reporting by Patricia Zengerle; Editing by Peter Cooney and Frances Kerry)

Trump escalates fight over Russia probe, approves release of secret memo

A copy of the formerly top secret classified memo written by House Intelligence Committee Republican staff and declassified for release by U.S. President Donald Trump is seen shortly after it was released by the committee in Washington, February 2, 2018

By Doina Chiacu and Steve Holland

WASHINGTON (Reuters) – U.S. President Donald Trump on Friday approved the release of a classified Republican memo that alleges bias against him at the FBI and Justice Department, in an extraordinary showdown with law enforcement agencies over the probe into alleged Russian interference in the 2016 election.

Ignoring the urgings of the FBI earlier this week, Trump declassified the four-page memo and sent it to Congress, where Republicans on the House of Representatives Intelligence Committee immediately released it to the public.

The Republican president told reporters that the contents of the document tell a disgraceful story of bias against him and that “a lot of people should be ashamed.”

The document has become a flashpoint in a battle between Republicans and Democrats over Special Counsel Robert Mueller’s criminal probe into possible collusion between Trump’s campaign and Russia to sway the 2016 presidential election. Mueller is also believed to be investigating any attempts to impede his probe.

Trump has repeatedly complained about Mueller’s investigation, which has cast a shadow over his first year in office, calling it a witch hunt and denying any collusion or obstruction of justice. Moscow has denied any election meddling.

The memo, criticized by the FBI as incomplete and slammed by Democrats as an attempt to undermine Mueller’s probe, purports to show that the investigation of ties between the Trump campaign and Russia was driven by political bias.

The document, commissioned by the Republican chairman of the House intelligence panel, Devin Nunes, uses the case of investigations into a Trump campaign aide, Carter Page, saying the FBI used a biased source to justify surveillance on him.

It alleges that a dossier of Trump-Russia contacts compiled by former British spy Christopher Steele, and funded in part by U.S. Democrats, formed an “essential part” of requests for electronic surveillance on Page that began in October, 2016.

It says the initial application and subsequent renewal applications did not mention the link between Steele and the Democrats. It also portrays Steele as biased, saying he “was passionate about him (Trump) not being president.”

Democrats said the memo cherry picks information.

“The selective release and politicization of classified information sets a terrible precedent and will do long-term damage to the Intelligence Community and our law enforcement agencies,” Democrats on the House intelligence panel said in a statement on Friday.

The Democrats said they hoped to release their own memo responding to the allegations on Feb. 5.

The entire file that the Justice Department used to apply to a special court for permission to eavesdrop on Page remains highly classified, making it hard to evaluate the memo’s contents.

FBI ANGER OVER MEMO

Two days ago, in a rare public rebuke of the president and Republicans in Congress who were pushing to release the memo, the Federal Bureau of Investigation said it had “grave concerns about material omissions of fact” in the document and it should not be made public.

On Friday, FBI agents defended their work and said they “have not, and will not, allow partisan politics to distract” from their mission.

“The American people should know that they continue to be well-served by the world’s preeminent law enforcement agency,”

FBI Agents Association President Thomas O’Connor said in a statement after the memo’s release.

Earlier on Friday, Trump accused top U.S. law enforcement officers – some of whom he appointed himself – of politicizing investigations.

“The top Leadership and Investigators of the FBI and the Justice Department have politicized the sacred investigative process in favor of Democrats and against Republicans – something which would have been unthinkable just a short time ago,” Trump wrote on Twitter. The president praised “rank and file” FBI employees.

His latest salvo was sure to worsen the president’s frayed relations with agencies that are supposed to be politically independent.

James Clapper, the former director of national intelligence under Democratic President Barack Obama, said Trump’s attack on the FBI and Justice Department was the “pot calling the kettle black.”

Seeking to defuse the conflict over the memo, Republican House Speaker Paul Ryan backed the release of a Democratic counterpoint document. His office said he backed making the Democrats’ rebuttal public if it does not reveal intelligence gathering sources or methods.

Democrats say their counter-memo restores context and information left out of the Republican version. Republicans have resisted releasing that document,

The former head of Trump’s presidential campaign, Paul Manafort, and the Trump administration’s former national security adviser, Michael Flynn, have been charged in the Russia probe, along with others.

(Reporting by Steve Holland, Susan Heavey, Doina Chiacu and David Alexander; Writing by Alistair Bell; Editing by Frances Kerry)

You can click here for the entire memo that has just been released.    Intelligence committee memo 

Meadows says White House could give more time for ‘Dreamer’ fix

Protesters calling for an immigration bill addressing the so-called Dreamers, young adults who were brought to the United States as children, walk through the Hart Office Building on Capitol Hill in Washington, U.S., January 16, 2018.

WHITE SULPHUR SPRINGS, W.Va (Reuters) – An immigration deal protecting young “Dreamer” immigrants and allocating additional funds for border security without also addressing family migration and the visa lottery would be a “non starter,” Republican Mark Meadows, head of the conservative Freedom Caucus in the U.S. House of Representatives, said on Thursday.

Meadows said that President Donald Trump could extend the deadline to address the expiring Deferred Action for Childhood Arrivals program past March 5 in order for Congress to work out a broader deal.

“Listen, we are not going to do a few billion dollars for border security and have the same problem a decade from now, two decades from now,” Meadows told reporters. “If we’re going to solve the problem, let’s solve the problem.”

(Reporting by Amanda Becker)

Trump seeks $25 billion for border wall, offers ‘Dreamer’ citizenship

People protest for immigration reform for DACA recipients and a new Dream Act, in Los Angeles, California, U.S.

By Roberta Rampton and Susan Cornwell

WASHINGTON (Reuters) – President Donald Trump on Wednesday previewed his outline for an immigration bill that he will promote next week, saying he wants $25 billion to build a border wall and is open to granting citizenship to illegal immigrants who were brought to the United States as children.

Trump said he was optimistic he could come to an agreement with both Republicans and Democrats in the U.S. Congress that would appeal to hardliners seeking tougher rules for immigrants while also preventing the roughly 700,000 “Dreamers” from being deported.

“Tell them not to be concerned, ok? Tell them not to worry. We’re going to solve the problem. It’s up to the Democrats, but they (the Dreamers) should not be concerned,” Trump told reporters during an impromptu question-and-answer session at the White House.

Trump campaigned for president in 2016 promising tougher rules for immigration. In September, he announced he was ending the Deferred Action for Childhood Arrivals (DACA) program created by his Democratic predecessor Barack Obama, effective in March – unless Congress came up with a new law.

The program currently protects about 700,000 people, mostly Hispanic young adults, from deportation and provides them work permits.

Republican Senator Lindsey Graham, one of the lead lawmakers in the immigration negotiations, said Trump’s comments signaled a major breakthrough.

“President Trump’s support for a pathway to citizenship will help us get strong border security measures as we work to modernize a broken immigration system,” Graham said in a statement. “With this strong statement by President Trump, I have never felt better about our chances of finding a solution on immigration.”

“COULD GO EITHER WAY”

Graham was part of a bipartisan group of three dozen senators who met on Wednesday on Capitol Hill to discuss moving forward on immigration legislation.

After the meeting, Democratic Senator Claire McCaskill expressed cautious optimism to reporters about Trump’s framework, saying “that could go either way,” when asked if it will be helpful to lawmakers.

Trump’s chief of staff, John Kelly, was slated to meet with lawmakers on Capitol Hill on Thursday, a senior White House official said.

Trump so far has rejected bipartisan proposals to continue DACA, leading to the standoff between Republicans and Democrats in the Senate that resulted in a three-day government shutdown that ended on Monday.

Congress agreed to extend funding to Feb. 8, but Republicans promised to allow debate on the future of the young illegal immigrants. Senators began meeting to discuss their proposals on Wednesday.

The White House plans on Monday to unveil a framework for immigration legislation that it believes can pass muster with both parties. Trump will deliver his State of the Union address to Congress on Tuesday night.

For immigration legislation to be enacted into law, the House of Representatives ultimately would have to pass a bill identical to whatever the Senate approves.

Trump said his proposal would include a request for $25 billion for the border wall, $5 billion for other border security programs, measures to curb family sponsorship of immigrants, and an overhaul of or end to the visa lottery system.

In exchange, he said he wanted to offer the Dreamers protection from deportation and an “incentive” of citizenship, perhaps in 10 to 12 years.

Addressing the status of the Dreamers’ parents, who brought them into America illegally, would be “tricky,” Trump said.

(Reporting by Roberta Rampton; Writing by Makini Brice and Lisa Lambert; Editing by Rosalba O’Brien and Leslie Adler)

White House will release framework for immigration bill on Monday

People protest for immigration reform for DACA recipients and a new Dream Act, in Los Angeles, California, U.S. January 22, 2018.

ASHINGTON (Reuters) – The White House said on Wednesday that it planned to release a framework for immigration legislation next week.

“The White House will release a legislative framework on Monday that represents a compromise that members of both parties can support. We encourage the Senate to bring it to the floor,” White House press secretary Sarah Sanders told reporters.

(Reporting by Roberta Rampton; Writing by Makini Brice; Editing by Doina Chiacu)

Government shutdown fizzles on spending, immigration deal in Congress

Clouds pass over the U.S. Capitol at the start of the third day of a shut down of the federal government in Washington, U.S., January 22, 2018.

By Susan Cornwell and Richard Cowan

WASHINGTON (Reuters) – Congress voted on Monday to end a three-day U.S. government shutdown, approving the latest short-term funding bill as Democrats accepted promises from Republicans for a broad debate later on the future of young illegal immigrants.

The fourth temporary funding bill since October easily passed the Senate and the House of Representatives. President Donald Trump later in the evening signed the measure, largely a product of negotiations among Senate leaders.

Enactment by Trump of the bill allowed the government to reopen fully on Tuesday and keep the lights on through Feb. 8, when the Republican-led Congress will have to revisit budget and immigration policy, two disparate issues that have become closely linked.

The House approved the funding bill by a vote of 266-150 just hours after it passed the Senate by a vote of 81-18.

Trump’s attempts to negotiate an end to the shutdown with Senate Democratic leader Chuck Schumer collapsed on Friday in recriminations and fingerpointing. The Republican president took a new swipe at Democrats as he celebrated the Senate’s pact.

“I am pleased that Democrats in Congress have come to their senses,” Trump said in a statement. “We will make a long term deal on immigration if and only if it’s good for the country.”

Immigration and the budget are entangled because of Congress’ failure to approve a full-scale budget on time by Oct. 1, 2017, just weeks after Trump summarily ordered an end by March to Obama-era legal protections for young immigrants known as the “Dreamers.”

The budget failure has necessitated passage by Congress of a series of temporary funding measures, giving Democrats leverage each step of the way since they hold votes needed to overcome a 60-vote threshold in the Senate for most legislation.

With government spending authority about to expire again at midnight on Friday, Democrats withheld support for a fourth stopgap spending bill and demanded action for the Dreamers.

‘DREAMERS’

The roughly 700,000 young people were brought to the United States illegally as children, mainly from Mexico and Central America. They mostly grew up in the United States.

Former President Barack Obama’s Deferred Action for Childhood Arrivals, or DACA, program gave the Dreamers legal protections and shielded them from deportation.

Democrats, as a condition of supporting a new spending stopgap, demanded a resolution of the uncertain future Trump created for the Dreamers with his DACA order last year.

But Democratic leaders, worried about being blamed for the disruptive shutdown that resulted, relented in the end and accepted a pledge by Republicans to hold a debate later over the fate of the Dreamers and related immigration issues.

Tens of thousands of federal workers had begun closing down operations for lack of funding on Monday, the first weekday since the shutdown, but essential services such as security and defense operations had continued.

The shutdown undercut Trump’s self-crafted image as a dealmaker who would repair the broken culture in Washington. It forced him to cancel a weekend trip to his Mar-a-Lago estate in Florida.

The U.S. government cannot fully operate without funding bills that are voted in Congress regularly. Washington has been hampered by frequent threats of a shutdown in recent years as the two parties fight over spending, immigration and other issues. The last U.S. government shutdown was in 2013.

Both sides in Washington had tried to blame each other for the shutdown. The White House on Saturday refused to negotiate on immigration issues until the government reopened.

On Monday, Trump met separately at the White House with Republican senators who have taken a harder line on immigration and with moderate Democratic Senators Joe Manchin and Doug Jones.

Reuters/Ipsos polling data released on Monday showed Americans deeply conflicted about the immigration issue, although majorities in both parties supported the DACA program.

‘WHY DO WE HAVE TO WAIT?’

Some liberal groups were infuriated by the decision to reopen the government.

“Today’s cave by Senate Democrats – led by weak-kneed, right-of-center Democrats – is why people don’t believe the Democratic Party stands for anything,” said Stephanie Taylor, co-founder of the Progressive Change Campaign Committee.

Markets have absorbed the shutdown drama over the past week.

U.S. stocks advanced on Monday as each of Wall Street’s main indexes touched a record intraday level after the shutdown deal.

For Jovan Rodriguez of Brooklyn, New York, a Dreamer whose family came from Mexico when he was 3 years old and ultimately settled in Texas, the latest development was more of the same.

“Why do we have to wait – again? It’s like our lives are suspended in limbo,” he said. And they have been for months. I don’t trust the Republicans and I don’t trust (Senate Majority Leader Mitch) McConnell with just a promise. That’s not good enough any more.”

(Additional reporting by David Morgan, Ginger Gibson, Amanda Becker, Blake Brittain, Susan Heavey, Steve Holland, Diane Bartz, Lucia Mutikani, Yasmeen Abdutaleb and Patricia Zengerle in Washington, Megan Davies in New York and Sharon Bernstein in Sacramento, Calif.; Writing by Doina Chiacu; Editing by Alistair Bell and Peter Cooney)

Trump promises to ‘take the heat’ for broad immigration deal

U.S. President Donald Trump, flanked by U.S. Senator Dick Durbin (D-IL) and Representative Steny Hoyer (D-MD), holds a bipartisan meeting with legislators on immigration reform at the White House in Washington, U.S. January 9, 2018. REUTERS/Jonathan

By Jeff Mason and Richard Cowan

WASHINGTON (Reuters) – President Donald Trump said on Tuesday he was ready to accept an onslaught of criticism if lawmakers tackle broad immigration reforms after an initial deal to help the young illegal immigrants known as Dreamers and build a wall on the U.S. border with Mexico.

Trump told lawmakers at the White House he would back a two-phased approach to overhauling U.S. immigration laws with the first step focused on protecting immigrants who were brought here as children from deportation along with funding for a wall and other restrictions that Democrats have opposed.

Once that is done, Trump said, he favors moving quickly to address even more contentious issues, including a possible pathway to citizenship for 11 million illegal immigrants that is opposed by many Republicans and many of his supporters.

“If you want to take it that further step, I’ll take the heat, I don’t care,” Trump told lawmakers about a broad immigration bill. “You are not that far away from comprehensive immigration reform. And if you wanted to go that final step, I think you should do it.”

Trump campaigned for the White House in 2016 with a hard-line approach on illegal immigration, and many of his supporters consider potential citizenship for undocumented immigrants to be an unacceptable grant of amnesty.

Trump said on Tuesday he would sign a bill that gives legal status to the hundreds of thousands of undocumented immigrants brought to the country as children, known as Dreamers, as long as the bill had the border security protections he has sought, including funding for a wall.

“Now, that doesn’t mean 2,000 miles of wall because you just don’t need that … because of mountains and rivers and lots of other things,” Trump said. “But we need a certain portion of that border to have the wall. If we don’t have it, you can never have security.”

Trump and his fellow Republicans, who control the U.S. Congress, have been unable to reach agreement with Democrats on a deal to resolve the status of an estimated 700,000 young immigrants whose protection from potential deportation under the Deferred Action for Childhood Arrivals, or DACA, program ends in early March.

“A VERY PRODUCTIVE MEETING”

Under pressure from immigrant groups ahead of midterm congressional elections in November, Democrats are reluctant to give ground to Trump on the issue of the wall, his central promise from the 2016 presidential campaign.

But after the meeting, lawmakers from both parties said they would meet as early as Wednesday to continue negotiations on a deal covering DACA and border security, as well as a visa lottery program and “chain migration,” which could address the status of relatives of Dreamers who are still in the United States illegally.

“From that standpoint it was a very productive meeting,” said Senator David Perdue, a Republican. “We have a scope now.”

White House spokeswoman Sarah Sanders told reporters the broader bill with a path to citizenship was not a focus for now.

“We’re certainly open to talking about a number of other issues when it comes to immigration, but right now this administration is focused on those four things and that negotiation, and not a lot else at this front,” she said.

Republican Senator Lindsey Graham, who also was at the meeting, said negotiators in Congress still faced difficulties but it was important that Trump had shown he had “no animosity toward the Dream Act kids” and the “wall is not going to be 2,220 miles wide.”

PARTY DIFFERENCES ON BORDER SECURITY

The U.S. Congress has been trying and failing to pass a comprehensive immigration bill for more than a decade, most recently in 2013 when the Senate passed a bill that later died in the House of Representatives.

The latest immigration negotiations are part of a broader series of talks over issues ranging from funding the federal government through next September to renewing a children’s health insurance program and giving U.S. territories and states additional aid for rebuilding after last year’s hurricanes and wildfires.

Top congressional leaders did not attend the hour-long meeting. The guest list included lawmakers from both parties involved in the immigration debate, such as Graham and Democratic Senator Dick Durbin.

A majority of those protected under DACA are from Mexico and Central America and have spent most of their lives in the United States, attending school and participating in society.

Trump put their fate in doubt in early September when he announced he was ending the DACA program created by former President Barack Obama, which allowed them to legally live and work in the United States temporarily.

Steny Hoyer, the No. 2 Democrat in the House of Representatives, said a DACA bill could win support for passage even though there are differences between the parties over what constitutes necessary border security.

“Democrats are for security at the border,” Hoyer told Trump during the meeting. “There are obviously differences, however, Mr. President, on how you affect that.”

On Monday, Trump announced that he was ending immigration protections for about 200,000 El Salvadorans who have been living legally in the United States under the Temporary Protection Status program. Haitians and other groups have faced similar actions.

A congressional aide told Reuters that negotiators in Congress also have been talking about legislation that would expand TPS in return for ending a visa lottery program that Republicans want to terminate.

(Reporting by Jeff Mason and Richard Cowan; Additional reporting by Susan Cornwell, Steve Holland, Susan Heavey and Amanda Becker; Writing by John Whitesides and Jeff Mason; Editing by Leslie Adler)

U.S. House gives final approval to tax bill, delivers victory to Trump

President Trump celebrates with Congressional Republican on the South Lawn of the White House.

By David Morgan and Amanda Becker

WASHINGTON (Reuters) – The Republican-controlled U.S. House of Representatives gave final approval on Wednesday to the biggest overhaul of the U.S. tax code in 30 years, sending a sweeping $1.5 trillion tax bill to President Donald Trump for his signature.

In sealing Trump’s first major legislative victory, Republicans steamrolled opposition from Democrats to pass a bill that slashes taxes for corporations and the wealthy while giving mixed, temporary tax relief to middle-class Americans.

The House approved the measure, 224-201, passing it for the second time in two days after a procedural foul-up forced another vote on Wednesday. The Senate had passed it 51-48 in the early hours of Wednesday.

“We are making America great again,” Trump said, echoing his campaign slogan at a White House celebration with Republican lawmakers. “Ultimately what does it mean? It means jobs, jobs, jobs.”

Trump, who emphasized a tax cut for middle-class Americans during his 2016 campaign, said at an earlier Cabinet meeting that lowering the corporate tax rate from 35 percent to 21 percent was “probably the biggest factor in this plan.”

It was uncertain when the bill would be signed. White House economic adviser Gary Cohn said the timing depended on whether automatic spending cuts triggered by the legislation could be waived. If so, the president will sign it before the end of the year, he said.

The administration expects the waiver to be included in a spending resolution Congress will pass later this week, a White House official told reporters.

BUSINESS FRIENDLY

In addition to cutting the U.S. corporate income tax rate to 21 percent, the debt-financed legislation gives other business owners a new 20 percent deduction on business income and reshapes how the government taxes multinational corporations along the lines the country’s largest businesses have recommended for years.

Millions of Americans would stop itemizing deductions under the bill, putting tax breaks that incentivize home ownership and charitable donations out of their reach, but also making tax returns somewhat simpler and shorter.

The bill keeps the present number of tax brackets but adjusts many of the rates and income levels for each one. The top tax rate for high earners is reduced. The estate tax on inheritances is changed so far fewer people will pay.

Once signed, taxpayers likely would see the first changes to their paycheck tax withholdings in February. Most households will not see the full effect of the tax plan on their income until they file their 2018 taxes in early 2019.

In two provisions added to secure needed Republican votes, the legislation also allows oil drilling in Alaska’s Arctic National Wildlife Refuge and removes a tax penalty under the Obamacare health law for Americans who do not obtain health insurance.

“We have essentially repealed Obamacare and we’ll come up with something that will be much better,” Trump said.

Democrats were united in opposition to the tax legislation, calling it a giveaway to the wealthy that will widen the income gap between rich and poor, while adding $1.5 trillion over the next decade to the $20 trillion national debt. Trump promised in 2016 he would eliminate the national debt as president.

“PILLAGING”

“Today the Republicans take their victory lap for successfully pillaging the American middle class to benefit the powerful and the privileged,” House Democratic leader Nancy Pelosi said.

Opinion polls show the tax bill is unpopular with the public and Democrats promised to make Republicans pay for their vote during next year’s congressional elections, when all 435 House seats and 34 of the 100 Senate seats will be up for grabs.

“Republicans will rue the day they passed this bill,” Senate Democratic leader Chuck Schumer told reporters. “We are going to continue hammering away about why this bill is so unpopular.”

U.S. House Speaker Paul Ryan defended the bill, saying support would grow for after it passes and Americans felt relief. “I think minds are going to change,” Ryan said on ABC’s “Good Morning America” television program.

A few Republicans, a party once defined by fiscal hawkishness, have protested the deficit-spending encompassed in the bill. But most voted for it anyway, saying it would help businesses and individuals while boosting an already expanding economy they see as not growing fast enough.

In the House, 12 Republicans voted against the tax bill. All but one, Walter Jones of North Carolina, were from the high-tax states of New York, New Jersey and California, which will be hit by the bill’s cap on deductions for state and local taxes.

Despite Trump administration promises that the tax overhaul would focus on the middle class and not cut taxes for the rich, the nonpartisan Tax Policy Center, a think tank in Washington, estimated middle-income households would see an average tax cut of $900 next year under the bill, while the wealthiest 1 percent of Americans would see an average cut of $51,000.

The House was forced to vote again after the Senate parliamentarian ruled three minor provisions violated arcane Senate rules. To proceed, the Senate deleted the three provisions and then approved the bill.

Because the House and Senate must approve the same legislation before Trump can sign it into law, the Senate’s late Tuesday vote sent the bill back to the House.

Graphic: Republican tax bill’s tax brackets and rates – http://tmsnrt.rs/2BJnrIV

Graphic: U.S. debt level since 1950 – http://reut.rs/2B3Yl3C

(Reporting by David Morgan and Amanda Becker; Additional reporting by Richard Cowan, Roberta Rampton, Gina Chon and Susan Heavey; Writing by John Whitesides; Editing by Jeffrey Benkoe and Bill Trott)