Nations to consider more North Korea sanctions, U.S. warns on military option

South Korean Minister of Foreign Affairs Kang Kyung-wha, U.S. Secretary of State Rex Tillerson, Canada’s Minister of Foreign Affairs Chrystia Freeland and Japan's Minister of Foreign Affairs Taro Kono are seen during the Foreign Ministers’ Meeting on Security and Stability on the Korean Peninsula in Vancouver, British Columbia, Canada January 16, 2018.

By David Brunnstrom and David Ljunggren

VANCOUVER (Reuters) – Twenty nations agreed on Tuesday to consider tougher sanctions to press North Korea to give up its nuclear weapons and U.S. Secretary of State Rex Tillerson warned Pyongyang it could trigger a military response if it did not choose negotiations.

A U.S.-hosted meeting of countries that backed South Korea during the 1950-53 Korea War also vowed to support renewed dialogue between the two Koreas “in hopes that it leads to sustained easing of tensions” and agreed that a diplomatic solution to the crisis was both essential and possible.

North Korean leader Kim Jong Un has refused to give up development of nuclear missiles capable of hitting the United States in spite of increasingly severe U.N. sanctions, raising fears of a new war on the Korean peninsula.

The United States and Canada co-hosted the day-long meeting in Vancouver to discuss ways to increase pressure on Kim.

U.S. officials have reported a debate within the Trump administration over whether to give more active consideration to military options, such as a pre-emptive strike on a North Korean nuclear or missile site.

Tillerson brushed off a question about such a “bloody nose” strike, telling a closing news conference: “I’m a not going to comment on issues that have yet to be decided among the National Security Council or the president.”

However, he said the threat posed by North Korea was growing.

“We all need to be very sober and clear-eyed about the current situation … We have to recognize that the threat is growing and if North Korea does not chose the pathway of engagement, discussion, negotiation, then they themselves will trigger an option,” Tillerson said.

“Our approach is, in terms of having North Korea chose the correct step, is to present them with what is the best option – talks are the best option; that when they look at the military situation, that’s not a good outcome for them.”

“It is time to talk, but they have to take the step to say they want to talk.”

The Vancouver meeting pledged to ensure that U.N. sanctions already in place were fully implemented and the participants said in a joint statement they agreed “to consider and take steps to impose unilateral sanctions and further diplomatic actions that go beyond those required by U.N. Security Council resolutions.” They gave no details.

Tillerson said all countries needed to work together to improve interdiction of ships attempting to skirt sanctions and said there must be “new consequences” for North Korea “whenever new aggression occurs.”

He said the meeting had agreed that China and Russia, which did not attend the Vancouver talks and sharply criticized them, must fully implement U.N. sanctions.

Speaking in Beijing, Chinese Foreign Ministry spokesman Lu Kang said Canada and the United States were demonstrating a “Cold War mentality” that would divide the international community and damage chances of an appropriate settlement on the peninsula.

“Only through dialogue, equally addressing the reasonable concerns of all parties, can a way to an effective and peaceful resolution be found,” Lu added.

U.S. officials say discussion of a military strike option has lost some momentum since North and South Korea held formal talks for the first time in two years this month and Pyongyang said it would send athletes to the Winter Olympics that South Korea will host next month.

‘NOT TIME FOR REWARD’

Japanese Foreign Minister Taro Kono said in Vancouver that the world should not be naive about North Korea’s “charm offensive” in engaging in talks with the South.

“It is not the time to ease pressure, or to reward North Korea,” he said. “The fact that North Korea is engaging in dialogue could be interpreted as proof that the sanctions are working.”

South Korean Foreign Minister Kang Kyung-wha said she hoped the dialogue would continue well beyond the Olympics, but stressed that existing sanctions must be applied more rigorously.

Tillerson said North Korea must not be allowed “to drive a wedge” through allied resolve or solidarity and reiterated Washington’s rejection of a Chinese-Russian proposal for the United States and South Korea to freeze military exercises in return for a freeze in North Korea’s weapons programs.

A senior State Department official said U.S. Defense Secretary Jim Mattis briefed the Vancouver participants over dinner on Monday and stressed the U.S. preference for a diplomatic solution, while keeping a military option on the table.

“It was a chance to raise people’s confidence that we have thought through this, that we definitely prefer a diplomatic solution,” the official said.

Russia and China have been accused of not fully implementing the U.N. sanctions, something they deny.

Chinese Foreign Minister Wang Yi, speaking on Tuesday in the West African state of Sao Tome, said everyone should cherish the present easing of tension on the Korean peninsula.

But history shows that each time tensions ease, there could be interference or backsliding, Wang added.

“Now is the time to test each side’s sincerity,” he said. “The international community must keep its eyes wide open, and see who is really the promoter of a peaceful resolution to the peninsula nuclear issue and who will become the saboteur who causes a return to tensions.”

A U.S. official said Susan Thornton, the State Department’s senior diplomat for East Asia, would travel to Beijing from Vancouver to brief China on the outcome. He said he expected Tillerson to provide readouts to his Russian and Chinese counterparts.

(Reporting by David Ljunggren and David Brunnstrom; Additional reporting by Nicole Mordant in Vancouver, Michelle Nichols at the United Nations, Philip Wen in Beijing and Matt Spetalnick in Washington; Editing by James Dalgleish and Lisa Shumaker)

Trump says U.S. Secretary of State Tillerson not leaving post

Trump says U.S. Secretary of State Tillerson not leaving post

WASHINGTON (Reuters) – U.S. Secretary of State Rex Tillerson is not leaving, President Donald Trump tweeted on Friday, after U.S. officials on Thursday said the White House had a plan for CIA Director Mike Pompeo to replace him.

“The media has been speculating that I fired Rex Tillerson or that he would be leaving soon – FAKE NEWS! He’s not leaving and while we disagree on certain subjects, (I call the final shots) we work well together and America is highly respected again!” Trump said on Twitter.

The tweet linked to a picture of Tillerson being sworn in as secretary of state with Trump and Vice President Mike Pence looking on.

Senior administration officials on Thursday said that Trump was considering a plan to oust Tillerson, whose relationship with the president has been strained by the top U.S. diplomat’s softer line on North Korea and other policy differences, as well as by reports in October that he called the president a “moron.”

Tillerson has not directly addressed whether he made the comment, though his spokeswoman denied it. The New York Times on Thursday first reported the White House plan to replace him.

Asked to comment on some White House officials wanting him to resign, how the matter was being handled and what his plans were, Tillerson replied: “It’s laughable. It’s laughable.”

His comments came as he posed for pictures with Libyan Prime Minister Fayez al-Sarraj of the United Nations-backed government in Tripoli.

Tillerson visits Europe next week to attend NATO meetings in Brussels on Tuesday and Wednesday, an Organization for Security and Cooperation in Europe (OSCE) meeting in Vienna on Thursday and talks with French officials in Paris on Friday.

He is tentatively scheduled to meet Russian Foreign Minister Sergei Lavrov in Vienna on Thursday on the sidelines of the OSCE meeting, a senior State Department official told reporters.

(Reporting by Arshad Mohammed; Editing by Jonathan Oatis)

Trump administration to release rules on disclosing cyber flaws: source

Trump administration to release rules on disclosing cyber flaws: source

By Dustin Volz

WASHINGTON (Reuters) – The Trump administration is expected to publicly release on Wednesday its rules for deciding whether to disclose cyber security flaws or keep them secret, a national security official told Reuters.

The move is an attempt by the U.S. government to address criticism that it too often jeopardizes internet security by stockpiling the cyber vulnerabilities it detects in order to preserve its ability to launch its own attacks on computer systems.

The revised rules, expected to be published on whitehouse.gov, are intended to make the process for how various federal agencies weigh the costs of keeping a flaw secret more transparent, said the official, who spoke on condition of anonymity because the rules were not yet public.

Under former President Barack Obama, the U.S. government created an inter-agency review, known as the Vulnerability Equities Process, to determine what to do with flaws unearthed primarily by the National Security Agency.

The process is designed to balance law enforcement and U.S. intelligence desires to hack into devices with the need to warn manufacturers so that they can patch holes before criminals and other hackers take advantage of them.

The new Trump administration rules will name the agencies involved in the process and include more of them than before, such as the Departments of Commerce, Treasury and State, the official said.

Rob Joyce, the White House cyber security coordinator, has previewed the new rules in recent public appearances.

“It will include the criteria that the panel weighs, and it will also include the participants,” Joyce said last month at a Washington Post event. He said the Trump administration wanted to end the “smoke-filled room mystery” surrounding the process.

Some security experts have long criticized the process as overly secretive and too often erring against disclosure.

The criticism grew earlier this year when a global ransomware attack known as WannaCry infected computers in at least 150 countries, knocking hospitals offline and disrupting services at factories.

The attack was made possible because of a flaw in Microsoft’s Windows software that the NSA had used to build a hacking tool for its own use.

But in a breach U.S. investigators are still working to understand, that tool and others ended up in the hands of a mysterious group called the Shadow Brokers, which then published them online.

Suspected North Korean hackers spotted the Windows flaw and repurposed it to unleash the WannaCry attack, according to cyber experts. North Korea has routinely denied involvement in cyber attacks against other countries.

 

(Reporting by Dustin Volz; editing by Grant McCool)

 

As militant threats shift, U.S. Senate revives war authorization debate

Flanked by Secretary of State Rex Tillerson and Defense Secretary James Mattis, U.S. President Donald Trump meets with members of his cabinet at the White House in Washington, U.S., October 16, 2017.

By Patricia Zengerle

WASHINGTON (Reuters) – U.S. lawmakers will grill top Trump administration officials on Monday about a new authorization for the use of military force in the campaign against Islamic State and other militant groups, Congress’ most significant step in years toward taking back control of its constitutional right to authorize war.

Secretary of State Rex Tillerson and Secretary of Defense Jim Mattis will testify before the Senate Foreign Relations Committee at a hearing on the administration’s view of a new Authorization for the Use of Military Force, known by the acronym AUMF.

Republican and Democratic members of Congress have been arguing for years that Congress ceded too much authority over the deployment of U.S. forces to the White House after the Sept. 11, 2001, attacks. They are also divided over how much control they should exert over the Pentagon. Repeated efforts to write and pass a new AUMF have failed.

“As we face a wide array of threats abroad, it is perhaps more important than ever that we have a sober national conversation about Congress’ constitutional role in authorizing the use of military force,” Republican Bob Corker, the chairman of the Senate Foreign Relations Committee, said in a statement.

Under the Constitution, Congress, not the president, has the right to declare war.

Concerns intensified this month after four U.S. soldiers were killed in Niger and previously over President Donald Trump’s talk about North Korea and an attack on a airfield in Syria.

“What’s happening in Niger and more broadly in Africa suggests a greater urgency for an AUMF,” Democratic Senator Tim Kaine, a leading advocate for a new authorization, said on Thursday after a classified briefing on Niger.

Republican Senator John McCain, chairman of the Senate Armed Services Committee and the chamber’s most famous war veteran, had said he might consider issuing a subpoena because the White House had not been forthcoming with details of the Niger attack and threatened to block Trump nominees.

McCain has since said he is pleased with the information he is receiving and would let nominations go ahead.

Congress has not passed an AUMF since the 2002 measure authorizing the Iraq War. But the legal justification for most military action for the past 15 years is the older September 2001 AUMF, for the campaign against al Qaeda and affiliates.

Backers of a new AUMF say the 2001 authorization, which was not limited by time or geography, has let presidents wage war wherever they like, without spelling out any strategy for Congress, or the public. For example, Islamic State did not exist when the 2001 AUMF was passed.

Trump’s fellow Republicans control majorities in both the Senate and House of Representatives but there are deep divisions over any possible new authorization within the party, as well as between Republicans and Democrats.

Many Republicans, like McCain and Senator Lindsey Graham, do not want a measure exerting too much control over the Pentagon and say military commanders should decide how to fight America’s enemies.

Many Democrats say they want an AUMF that limits why, where and for how long U.S. forces can be sent to fight.

 

(Reporting by Patricia Zengerle; Editing by Yara Bayoumy and Bill Trott)

 

Trump administration to order agencies to adopt new email security standards

Jeanette Manfra, Acting Deputy Undersecretary for Cybersecurity at the DHS, testifies about Russian interference in U.S. elections to the Senate Intelligence Committee in Washington, U.S., June 21, 2017.

By Dustin Volz

WASHINGTON (Reuters) – The Trump administration on Monday will order federal agencies to adopt common email security standards in an effort to better protect against hackers, a senior Department of Homeland Security official said.

DHS Assistant Secretary for Cybersecurity Jeanette Manfra, speaking at an event in New York, said the agency would issue a binding directive to require implementation of two cyber security measures, known as DMARC and STARTTLS, intended to guard against email spoofing and phishing attacks.

The new requirements are “discrete steps that have scalable, broad impact” that will improve federal government cyber security, Manfra said.

DMARC, or domain-based message authentication, reporting and conformance, is a popular technical standard that helps detect and block email impersonation, such as when a hacker might try to pose as a government official or agency.

STARTTLS is a form of encryption technology that protects email traveling between servers, making it more difficult for a third-party to intercept.

 

(Reporting by Dustin Volz; Editing by Chizu Nomiyama and Bill Trott)

 

Trump administration asks Congress for $29 billion in hurricane relief

Trump administration asks Congress for $29 billion in hurricane relief

By David Shepardson and Richard Cowan

WASHINGTON (Reuters) – The Trump administration on Wednesday asked U.S. lawmakers to approve $29 billion in disaster relief funds to assist victims of recent hurricanes that hit Texas, Florida and Puerto Rico.

The aid request includes $12.8 billion in new funds to help storm victims and $16 billion to defray debt in the federal government’s flood insurance program. The White House said the program would reach the limit of its borrowing authority late this month. The administration also wants another $576.5 million to pay for fighting wildfires in the western United States.

Separately, the White House budget director, Mick Mulvaney, asked federal agencies in a memorandum Wednesday to estimate by Oct. 25 how much additional funding they will need for “long-term disaster recovery.” He said agencies should only identify costs related directly to recent storms to “support recovery and rebuilding from these recent hurricanes.”

The White House said the disaster funding will ensure it has enough funds to provide support through Dec. 31 and earlier this week had about $10 billion on hand. The White House told Congress it is committing $200 million a day for recovery efforts.

The White House said it forecasts the National Flood Insurance Program, which insures about 5 million homes and businesses, will have hurricane losses of about $16 billion and proposed cancelling $16 billion in debt for the program. The administration proposed a series of reforms to the program, including phasing out issuing policies for newly constructed homes and for commercial customers after 2021.

The administration also wants to establish means testing to ensure the insurance remains affordable for low-income policyholders and to discontinue coverage for homes that are hit by repeated storms.

Congressional leaders expressed support for the plan, but flood insurance program reforms will face some opposition.

Congress approved a $15.25 billion aid package last month. House Speaker Paul Ryan said “more is clearly needed, and this funding request will help meet that need.”

Senate Majority Leader Mitch McConnell also praised the request.

Representative Nita Lowey, a New York Democrat, praised the new request but added “far more will be necessary.”

She said Congress should add additional funding “for flexible Community Development Block Grants; rebuilding coastlines, roads, transit systems, airports, ports, and other infrastructure; small business loans; and repairs to military installations and other federal facilities damaged in the storms.”

(Reporting by Richard Cowan and David Shepardson; editing by Diane Craft and Jonathan Oatis)

U.S. will only talk to North Korea about freeing U.S. citizens: White House

U.S. President Donald Trump makes a statement on the mass shooting in Las Vegas from the Diplomatic Room at the White House in Washington, U.S., October 2, 2017

WASHINGTON (Reuters) – The Trump administration will not hold any talks with North Korea at this time, except for possible conversations about freeing U.S. citizens who have been detained there, the White House said on Monday.

“We’ve been clear that now is not the time to talk,” White House spokeswoman Sarah Sanders told reporters, amplifying on a tweet from President Donald Trump over the weekend that had been seen as undercutting U.S. Secretary of State Rex Tillerson.

“The only conversations that have taken place, or that would, would be on bringing back Americans who have been detained,” Sanders said. “Beyond that, there will be no conversations with North Korea at this time.”

 

(Reporting by Jeff Mason; Writing by Tim Ahmann; Editing by David Alexander)

 

Under pressure from Trump, Price resigns as health secretary over private plane uproar

HHS Secretary Tom Price speaks at a news conference on annual influenza prevention at the Press Club in Washington, U.S., September 28, 2017. REUTERS/Kevin Lamarque

By Steve Holland

WASHINGTON (Reuters) – U.S. Health and Human Services Secretary Tom Price resigned under pressure from President Donald Trump on Friday in an uproar over Price’s use of costly private charter planes for government business.

His abrupt departure was announced an hour after Trump told reporters he was disappointed in Price’s use of private aircraft and did not like the way it reflected on his administration.

“Secretary of Health and Human Services Thomas Price offered his resignation earlier today and the president accepted,” the White House said in a statement.

Trump named Don Wright to serve as acting secretary. Wright is currently the deputy assistant secretary for health and director of the office of disease prevention and health promotion.

“I’m not happy. OK? I’m not happy,” Trump told reporters on the White House South Lawn.

Candidates to succeed Price included Seema Verma, who is administrator of the Centers for Medicare and Medicaid Services and who is close to Vice President Mike Pence, and Scott Gottlieb, a physician who serves as commissioner of the Food and Drug Administration, according to industry analysts.

Several sources saw Gottlieb as a clear front runner. They said he got along well with the White House and is viewed favorably there.

Price’s resignation leaves Trump with a second Cabinet position to fill. He has yet to pick a secretary for homeland security after hiring former Secretary John Kelly as his White House chief of staff.

It was the latest blow to the Trump White House, which has struggled to get major legislative achievements passed by Congress and has been embroiled in one controversy after another since Trump took office in January.

Price, a former congressman, was instrumental in the Trump administration’s policies aimed at undercutting Obamacare, as well as working with governors across the country to slowly begin unraveling parts of the law.

In a resignation letter, Price offered little in the way of contrition. He said he had been working to reform the U.S. healthcare system and reduce regulatory burdens, among other goals.

“I have spent forty years both as a doctor and public servant putting people first. I regret that the recent events have created a distraction from these important objectives,” he said.

Trump, currently trying to sell his tax cut plan and oversee the federal response to devastation wreaked by three hurricanes, saw the Price drama as an unnecessary distraction and behind the scenes was telling aides “what was he thinking?,” a source close to the president said.

Price promised on Thursday to repay the nearly $52,000 cost of his seats on private charter flights. “The taxpayers won’t pay a dime for my seat on those planes,” Price said.

But that was not enough to satisfy Trump.

Trump told reporters that the “optics” of Price’s travel were not good, since, as president he was trying to renegotiate U.S. contracts to get a better deal for taxpayers.

“Look, I think he’s a very fine person. I certainly don’t like the optics,” Trump said.

Price had also been seen in the White House as having been ineffective in getting Congress to pass healthcare reform legislation, an effort that has fizzled on Capitol Hill.

Price was one of a handful of senior officials in Trump’s administration put on the defensive over reports about their use of charter flights and government aircraft, sometimes for personal travel, when they could have flown commercial for less money.

The White House issued an order late on Friday saying use of private planes required approval from White House Chief of Staff John Kelly and that the commercial air system was appropriate even for very senior officials with few exceptions.

The Washington Post on Friday reported that Veterans Affairs Secretary David Shulkin attended a Wimbledon tennis match, toured Westminster Abbey and took a cruise on the Thames this summer during a 10-day trip to discuss veterans’ health issues in Britain and Denmark.

Shulkin, who traveled on a commercial airline, was accompanied on the trip by his wife, whose airfare was paid for by the government and who received a per diem for meals, the Post said, noting that the Department of Veterans Affairs said she was traveling on “approved invitational orders.”

His six-person traveling party included an acting undersecretary of health and her husband as well as two aides. They were accompanied by a security detail of as many as six people, the Post said.

Washington news media outlet Politico has reported that Price had taken at least two dozen private charter flights since May at a cost to U.S. taxpayers of more than $400,000. Politico also reported he took approved military flights to Africa and Europe costing $500,000.

Senior U.S. government officials travel frequently, but are generally expected to keep costs down by taking commercial flights or the train when possible.

Environmental Protection Agency Administrator Scott Pruitt and Treasury Secretary Steve Mnuchin have also been in the spotlight for their travel habits.

(Additional reporting by David Alexander, James Oliphant, Yasmeen Abutaleb and Toni Clarke; Editing by Jonathan Oatis and Andrew Hay)

U.S. appoints general to oversee military response to Puerto Rico disaster

U.S. appoints general to oversee military response to Puerto Rico disaster

By Robin Respaut and Dave Graham

SAN JUAN, Puerto Rico (Reuters) – The Pentagon named a senior general to command military relief operations in hurricane-ravaged Puerto Rico on Thursday and the Trump administration sent a Cabinet emissary to the island as U.S. lawmakers called for a more robust response to the crisis.

The U.S. territory of 3.4 million people struggled through a ninth day with virtually no electricity, patchy communications and shortages of fuel, clean water and other essentials in the wake of Hurricane Maria, the most powerful storm to hit the island in nearly 90 years.

The storm struck on Sept. 20 with lethal, roof-ripping force and torrential rains that caused widespread flooding and heavily damaged homes, roads and other infrastructure.

The storm killed more than 30 people across the Caribbean, including at least 16 in Puerto Rico. Governor Ricardo Rossello has called the island’s devastation unprecedented.

The U.S. military, which has poured thousands of troops into the relief effort, named Lieutenant General Jeffrey Buchanan on Thursday to oversee its response on the island.

Buchanan, Army chief for the military’s U.S. Northern Command, was expected to arrive in Puerto Rico later on Thursday. He will be the Pentagon’s main liaison with the Federal Emergency Management Agency (FEMA), the U.S. government’s lead agency on the island, and focus on aid distribution, the Pentagon said in a statement.

FEMA has already placed the U.S. Army Corps of Engineers in charge of rebuilding the island’s crippled power grid, which has posed one of the island’s biggest challenges after the storm.

In yet another move raising the administration’s profile in the crisis, acting U.S. Homeland Security Secretary Elaine Duke, whose department includes FEMA, will visit Puerto Rico on Friday with other senior government officials to meet the governor, Puerto Rican authorities and federal relief workers, her office announced.

President Donald Trump again praised the government’s performance, saying on Twitter FEMA and other first responders were “doing a GREAT job,” but he complained about media coverage, adding: “Wish press would treat fairly!”

U.S. Senator Marco Rubio of Florida, like Trump a Republican, had earlier called for the appointment of a single authority to oversee all hurricane relief efforts, and said the Defense Department should mostly be in charge.

DISASTER BECOMING “MAN-MADE”

Democratic U.S. Senator Richard Blumenthal of Connecticut said the crisis was shifting from a natural disaster to a man-made one. The government’s response had been “shamefully slow and undersized and should be vastly upgraded and increased,” he told the Senate.

Blumenthal called for as many as 50,000 troops to better coordinate logistics and the delivery of aid and basic necessities.

Even as FEMA and the U.S. military have stepped up relief efforts, many residents in Puerto Rico voiced frustration at the pace of relief efforts.

“It’s chaos, total chaos,” said Radamez Montañez, a building administrator from Carolina, east of capital city San Juan, who has been without water and electricity at home since Hurricane Irma grazed the island two weeks before Maria.

In one sign of the prevailing sense of desperation, thousands lined up at San Juan harbor on Thursday to board a cruise ship bound for Florida in what was believed to be the largest mass evacuation since Maria struck the island.

The humanitarian mission, offered free of charge, was arranged between Royal Caribbean International <RCL.N> and Puerto Rican authorities on a largely ad-hoc, first-come basis that sought to give some priority to those facing special hardships.

Defending the relief effort, White House spokeswoman Sarah Sanders said 10,000 federal relief workers had arrived in Puerto Rico, including troops, and that 44 of the island’s 69 hospitals were now operational.

“The full weight of the United States government is engaged to ensure that food, water, healthcare and other life-saving resources are making it to the people in need,” Sanders told reporters.

Army Brigadier General Richard Kim told reporters that the total military force on the island, including the Puerto Rico National Guard, numbered about 4,400 troops.

SHIPPING RESTRICTION LIFTED

The Trump administration earlier lifted restrictions known as the Jones Act for 10 days on foreign shipping from the U.S. mainland to Puerto Rico. While that measure might help speed cargo shipments, Puerto Rico is struggling to move supplies around the island once they arrive.

The U.S. government has temporarily lifted the Jones Act following severe storms in the past, but critics had charged the government was slow to do this for Puerto Rico.

Overall, the island is likely to need far more than $30 billion in long-term aid from the U.S. government for disaster relief and rebuilding efforts following Maria, a senior Republican congressional aide said on Thursday.

The immediate relief effort was still badly hampered by the damage to infrastructure.

Clearing cargo deliveries at the San Juan port remained slow, and several newly arrived tankers were waiting for a chance to unload their fuel, according to Thomson Reuters shipping data.

“Really our biggest challenge has been the logistical assets to try to get some of the food and some of the water to different areas of Puerto Rico,” Governor Rossello told MSNBC on Thursday. He has staunchly defended the Trump administration for its relief response, which Trump noted in one of his Thursday night Twitter posts.

The military has delivered fuel to nine hospitals and helped establish more than 100 distribution centers for food and water on the island, the Pentagon said on Thursday.

Brock Long, the FEMA administrator, told CNN he was dissatisfied with the federal response to Maria, saying operations had been hindered by damage to the island’s air traffic control system, airports and seaports.

FEMA said full air traffic control services had been restored to the main international airport in San Juan, allowing for more than a dozen commercial flights a day, although that figure represented a fraction of the airport’s normal business.

The island has also seen the gradual reopening of hundreds of gasoline stations during the past few days, while a number of supermarket chains were also returning to business, FEMA officials said.

(Reporting by Robin Respaut and Dave Graham in SAN JUAN, and Doina Chiacu and Susan Heavey in WASHINGTON; Additional reporting by Makini Brice, Roberta Rampton, Richard Cowan, David Shepardson and Idrees Ali in WASHINGTON, and David Gaffen and Scott DiSavino in NEW YORK; Writing by Frances Kerry and Steve Gorman; Editing by Howard Goller, Lisa Shumaker and Paul Tait)

Trump’s tax plan to propose deep U.S. rate cuts, lacks revenue details

U.S. President Donald Trump walks to Marine One as he departs for New York from the White House in Washington, U.S., September 26, 2017. REUTERS/Joshua Roberts

By David Morgan

WASHINGTON (Reuters) – U.S. President Donald Trump will call on Wednesday for slashing tax rates on businesses and the wealthy as part of a new tax plan that is likely to offer few details about how to pay for the cuts without expanding the federal deficit.

Hammered out over months of talks among Trump aides and top Republicans in Congress, the plan to be unveiled at an event in Indianapolis was expected to propose a 20 percent corporate income tax rate, a new 25 percent tax rate for pass-through businesses such as partnerships, and a reduced 35 percent top income tax rate for individual Americans.

While it would lower the top individual rate from 39.6 percent, the plan was also expected to double the standard deduction, a set amount of income exempt from taxation, for all taxpayers.

“You have to look at the plan in its entirety. It doubles the standard deduction, so in the end, even the lowest rates get a tax cut,” said Jim Renacci, a Republican on the tax-writing House of Representatives Ways and Means Committee.

Republicans will say that the tax cuts, widely leaked to the media by a variety of sources in recent days, would be offset by new revenues raised from eliminating tax loopholes, although few if any of those are expected to be named in the plan.

Republicans are also expected to predict that the Trump tax cuts, if approved by Congress, would drive more robust U.S. economic growth, predictions that critics are sure to question.

At a time of slow but steady U.S. economic expansion, the Trump tax-cut package has some support in Congress, even among Republican fiscal hawks who only a short time ago routinely opposed deficit-financed fiscal proposals.

Trump and his Republican allies made completing tax reform in 2017 a top promise of the 2016 election campaign and are under mounting pressure to finish the job since the collapse of the latest Republican effort to overturn the Obamacare healthcare law.

Trump was expected to push lawmakers hard to quickly approve his tax package, despite critics who will say it falls short of the “tax reform” he promised on the campaign trail.

The plan will be the latest in a series of Republican documents outlining tax policy goals, but failing to tackle the tough questions that have defied past administrations’ efforts to fix the tax code. It has not been reformed since 1986.

WARNINGS ON DEFICIT

The Republican president was expected to try to sell his proposals as beneficial to U.S. workers by saying they would drive economic growth, create jobs and raise wages.

Corporations now pay a statutory 35 percent income tax rate. That is high by global standards and corporations have been seeking a tax cut for years, even though many of them pay much less than the headline rate due to loopholes and tax breaks.

Profits of small, pass-through businesses that are passed directly to the owners are now taxed at the individual income tax rates, often at the top level of 39.6 percent.

Analysts have warned that huge tax cuts would balloon the federal deficit and debt if the economic growth projected by Republicans fails to materialize amid rising interest rates.

An early analysis of the Trump plan by the nonpartisan Tax Foundation think tank estimated it would reduce federal revenues by roughly $5 trillion over a decade, excluding offsets.

On Tuesday, Trump told Republicans and Democrats from the tax-writing House Ways and Means Committee that he wanted tax reform to be bipartisan.

The plan to be unveiled was developed by a small team of senior Republicans behind closed doors with no input from Democrats. It was not clear how far Republicans in Congress would go to accommodate Democratic demands for revenue neutrality and no tax cuts for the wealthy.

“Trump asked for Democrats to jump on the caboose after the tax train has already left the station. I saw no Democrat ready to jump on board,” Democratic Representative Lloyd Doggett said after the meeting.

(Reporting by David Morgan; Editing by Kevin Drawbaugh and Peter Cooney)