Trump threatens to veto spending bill, raising government shutdown risk

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

By Richard Cowan and Steve Holland

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

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

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

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

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

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

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

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

There was no immediate comment from Republican leaders in Congress.

THREAT OR BLUFF?

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

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

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

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

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

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

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

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

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

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

Xi warns Taiwan will face ‘punishment of history’ for separatism

Chinese President Xi Jinping speaks at the closing session of the National People's Congress (NPC) at the Great Hall of the People in Beijing, China March 20, 2018.

By Philip Wen and Ben Blanchard

BEIJING (Reuters) – Chinese President Xi Jinping told self-ruled Taiwan on Tuesday that it would face the “punishment of history” for any attempt at separatism, offering his strongest warning yet to the island claimed by China as its sacred territory.

In response, the government of Taiwan, one of China’s most sensitive issues and a potentially dangerous military flashpoint, said it hoped China could “break free” of the old clichés of threats and force.

China’s hostility toward Taiwan has risen since the 2016 election of President Tsai Ing-wen, a member of the island’s pro-independence Democratic Progressive Party.

China suspects Tsai wants to push for formal independence, which would cross a red line for Communist Party leaders in Beijing, though Tsai has said she wants to maintain the status quo and is committed to ensuring peace.

China has been infuriated by U.S. President Donald Trump’s signing into law legislation last week that encourages the United States to send senior officials to Taiwan to meet Taiwan counterparts, and vice versa.

The United States does not have formal ties with Taiwan but is required by law to help it with self-defense and is the island’s primary source of weapons.

China will push for the “peaceful reunification of the motherland” and work for more Taiwanese to enjoy the opportunities of its development, Xi told the 3,000-odd delegates to the annual session of parliament.

“It is a shared aspiration of all Chinese people and in their basic interests to safeguard China’s sovereignty and territorial integrity and realize China’s complete reunification,” Xi said in a speech at the end of the session.

“Any actions and tricks to split China are doomed to failure and will meet with the people’s condemnation and the punishment of history,” he added, to loud applause.

China had the will, confidence and ability to defeat any separatist activity, Xi said.

“The Chinese people share a common belief that it is never allowed and it is absolutely impossible to separate any inch of our great country’s territory from China.”

In Taiwan, the China policy-making Mainland Affairs Council said the government was firm in its conviction to protect Taiwan’s “sovereign dignity” and the well-being of its people.

“We also hope that mainland China’s leaders, at this time of entering into a new administration period, can break free of clichéd thinking of strong intimidation,” it added.

In a visit likely to further irritate China, U.S. Deputy Assistant Secretary of State Alex Wong will be in Taiwan this week, the island’s foreign ministry said.

PATRIOTIC SPIRIT

China has also been worried about independence activists in the former British colony of Hong Kong following big street protests there in 2014 calling for universal suffrage.

Xi said China would uphold Hong Kong’s high degree of autonomy, but would also seek to increase “national consciousness and patriotic spirit” in the financial center.

Taiwan has shown no interest in being run by China, and has accused China of not understanding how democracy works, pointing out that Taiwan’s people have the right to decide its future.

The new U.S. law on Taiwan adds to strains between China and the United States over trade, as Trump has enacted tariffs and called for China to reduce its huge trade imbalance with the United States, even while Washington has sought Beijing’s help to resolve tension with North Korea.

Taiwan has thanked the United States for the law and its support, but its foreign ministry said on Monday there were no plans for any senior leaders, such as the president, to visit the United States.

While stepped-up Chinese military exercises around Taiwan over the past year have rattled the island, Xi reiterated China’s assertion that its rise was not a threat to any country, though China considers Taiwan to be merely a Chinese province not a nation.

“Only those who are in the habit of threatening others will see everyone else as a threat,” Xi said.

(Additional reporting by Stella Qiu and Christian Shepherd, and Twinnie Siu and Fabian Hamacher in TAIPEI; Writing by Ben Blanchard; Editing by Robert Birsel and Clarence Fernandez)

Security advisers from U.S., South Korea, Japan meet on North Korean summits: Seoul

FILE PHOTO: Shotaro Yachi speaks with Chinese State Councillor Yang Jiechi (not pictured) during a meeting at the Diaoyutai State Guesthouse in Beijing, China, August 25, 2016. REUTERS/Wu Hong/Pool

By Joyce Lee

SEOUL (Reuters) – The top national security advisers of the United States, South Korea and Japan met at the weekend to discuss North Korea and the “complete denuclearization of the Korean peninsula”, South Korea’s presidential Blue House said on Monday.

The two days of meetings could also help prepare the way for a possible meeting between U.S. President Donald Trump and North Korean leader Kim Jong Un.

They were the latest in a flurry of diplomatic activity spanning Asia, the United States and Europe ahead of North Korea’s planned summits with the South and the United States.

South Korea’s National Security Office chief Chung Eui-yong met U.S. National Security Adviser H.R. McMaster and Japan’s National Security Adviser Shotaro Yachi to discuss summit meetings between Kim and South Korean President Moon Jae-in, the Blue House in Seoul said.

They also discussed the possible meeting between Trump and Kim, it said.

The security advisers from the three countries discussed the “complete denuclearization of the Korean peninsula”, agreed that “it was important to not repeat the mistakes of the past” and to work together closely, the Blue House said.

A senior North Korean diplomat left for Finland on Sunday for talks with former U.S. and South Korean officials, South Korea’s Yonhap News Agency reported.

That followed three days of talks between North Korean and Swedish foreign ministers on security on the Korean peninsula.

Sweden “engaged heavily” on the issue of U.S. detainees during the talks between North Korean and Swedish foreign ministers, CNN reported on Sunday, citing unidentified sources with knowledge of the negotiations.

North Korea is pursuing its nuclear and missile programs in defiance of U.N. Security Council sanctions and has made no secret of its plans to develop a missile capable of hitting the U.S. mainland.

(Reporting by Joyce Lee; Editing by Sandra Maler and Paul Tait)

U.S. hints at shift on Russia with sanctions and condemnation

National flags of Russia and the U.S. fly at Vnukovo International Airport in Moscow, Russia April 11, 2017. REUTERS/Maxim Shemetov

By Arshad Mohammed and John Walcott

WASHINGTON (Reuters) – By imposing new sanctions on Russia and condemning a suspected Russian chemical attack in Britain, Washington has hinted at a tougher stance toward Moscow despite President Donald Trump’s stated desire for better ties.

The U.S. Treasury slapped sanctions on 19 Russian citizens and five entities for election meddling and cyber attacks in the most significant steps the United States has taken against Russia since Trump took office amid U.S. intelligence agency allegations that Moscow tried to help him win the 2016 election.

While the Treasury put off targeting oligarchs and officials close to Russian President Vladimir Putin, it said further sanctions were coming and for the first time blamed Moscow for cyber attacks stretching back at least two years that targeted the U.S. power grid, including nuclear facilities.

After initially equivocating about a chemical attack on a former Russian double agent in Salisbury, England, the White House joined a statement by the leaders of Britain, France and Germany in which they said they “abhor the attack” and blamed it on Moscow.

Moscow has denied any involvement in the poisoning.

Thursday’s actions have caused some Russia analysts to ask whether the administration is taking a more confrontational stance despite Trump’s repeated statements in the election campaign that he wanted a better relationship with Moscow, his praise for Putin and apparent reluctance to criticize the Russian leader.

“I think we have hit an inflection point in the current administration’s approach towards Russia,” said a diplomat who spoke on condition of anonymity. “There has been a shift in balance.”

The diplomat attributed the evolution partly to a clash between U.S.-backed and Russian-backed forces in the Syrian city of Deir al-Zor in February; Russia pounding Syria’s eastern Ghouta enclave of anti-government rebels with air strikes during the past month; and Putin showing a video on March 1 of a weapon appearing to hover over what looked like a map of Florida, home to Trump’s Mar-a-Lago resort.

“Those three things, taken together, have caused a shift in analysis in parts … of the administration,” said the diplomat.

TRUMP EXASPERATED

While there was a sense at the White House that there has been a hardening of Trump’s view toward Russia, at least for now, it was unclear whether this represented a long-term shift.

A senior administration official said there was some feeling that the goodwill that Trump extended toward Russia when he took over has not been reciprocated and that the Russians do not want to have good relations with the United States.

This has exasperated Trump, who instructed his team to make sure the United States appeared to be in solidarity with Britain over the nerve agent attack.

Eugene Rumer, a former U.S. national intelligence officer for Russia, suggested Trump’s approach may ultimately be guided by Special Counsel Robert Mueller’s investigation into whether Russia meddled in the election campaign.

The Kremlin denies interfering. Mueller is also investigating any potential collusion between the Trump campaign and Moscow officials, something Trump denies.

“My hypothesis is … the White House stance on Russia is going to be determined to a large extent by how much they think the investigation threatens their political position,” Rumer said.

Officials from multiple U.S. agencies discussed next steps at a meeting on Thursday, with one aim being to avoid personally attacking Putin and taking in-your-face steps that could prompt retaliation.

In announcing Thursday’s sanctions, U.S. officials made clear more would follow.

“This is just one of a series of ongoing actions that we’re taking to counter Russian aggression,” one U.S. official told reporters. “There will be more to come, and we’re going to continue to employ our resources to combat malicious Russian activity and respond to nefarious attacks.”

Sergei Skripal, 66, and his daughter Yulia, 33, were found unconscious on a bench outside a shopping center on March 4 after being exposed to what the British authorities have identified as a military-grade, Soviet-era Novichok nerve agent.

Another U.S. official attributed the sharper edge to U.S. policy to increasingly brazen behavior by Russia in cyberspace and on the ground, culminating in the Salisbury attack.

This U.S. official, who spoke on condition of anonymity, also pointed to Russia’s refusal to restrain Syrian President Bashar al-Assad and the role of Russian “mercenaries” in Syria, now entering its eighth year of civil war.

The official said it was unclear if Trump himself saw Russia as an adversary but suggested Putin may have “overplayed his hand” by leaving Russian fingerprints on the hacking, the chemical attack, the deployment of ground-launched cruise missiles which the U.S. says violate an arms control treaty, and a March 1 speech on “invincible” Russian weaponry.

“If the president felt like Putin was one-upping him, not to mention stealing the limelight, then it wouldn’t be surprising that he would react,” the official said.

While more sanctions are expected, it was not clear if the Trump policy toward Russia was changing, especially given Trump’s unpredictability, said a third official, who is involved in talks on next steps.

“Tomorrow is another day,” the official said.

(Additional reporting by Steve Holland and Warren Strobel; Writing by Arshad Mohammed; Editing by Grant McCool and Paul Tait)

Trump asked South Korea officials to show flexibility in trade talks: Seoul

FILE PHOTO: U.S. President Donald Trump and South Korea's President Moon Jae-in hold a joint press conference at the presidential Blue House in Seoul, South Korea, November 7, 2017. REUTERS/Jung Yeon-Je/Pool

SEOUL (Reuters) – U.S. President Donald Trump asked South Korean officials to show flexibility in trade negotiations with the United States in a phone call with South Korean President Moon Jae-in, the Blue House said in a statement on Friday.

South Korea and the United States were scheduled to hold a third round of talks for amendments to an existing bilateral free trade agreement this week in Washington. Trump has repeatedly said the free trade deal with South Korea is “unfair” and has threatened to scrap it altogether on multiple occasions.

(Reporting by Christine Kim; Editing by Janet Lawrence)

Trump-Netanyahu meeting is chance to project common front vs. Iran

FILE PHOTO: U.S. President Donald Trump speaks with Israeli Prime Minister Benjamin Netanyahu during the World Economic Forum (WEF) annual meeting in Davos, Switzerland January 25, 2018. REUTERS/Carlos Ba

By Matt Spetalnick and Jeffrey Heller

WASHINGTON/JERUSALEM (Reuters) – U.S. President Donald Trump and Israeli Prime Minister Benjamin Netanyahu hold talks on Monday that offer a chance to project a common front against Iran but are expected to do little to advance seemingly stalled Israeli-Palestinian peace prospects.

Mired in corruption investigations threatening his political survival, Netanyahu was confronted, only hours before the White House meeting, by news back home that a former spokesman had turned state’s witness in one of the probes. Netanyahu has denied any wrongdoing.

U.S. and Israeli officials said the agenda of Netanyahu’s talks with Trump would be topped by the president’s push to change or scrap Iran’s 2015 nuclear deal with world powers and concerns over Tehran’s foothold in Syria.

Both leaders have railed against the deal, citing its limited duration and the fact it does not cover Iran’s ballistic missile program or its support for anti-Israel militants in the region.

Trump has threatened to quit the agreement unless European allies help “fix” it with a follow-up accord. An Israeli official said Netanyahu and Trump were likely to talk about how to overcome European resistance on the matter.

“I intend to discuss a series of issues with (Trump), but foremost Iran, its aggression, nuclear ambitions and aggressive actions in the Middle East, including along our very border,” Netanyahu told reporters on his departure from Israel.

Israel has accused Tehran of seeking a permanent military presence in Syria, where Iranian-backed forces support Syrian President Bashar al-Assad in a civil war.

Netanyahu has cautioned that Israel could act against Iran itself after an Iranian drone flew into Israel last month and an Israeli warplane was downed while bombing air defenses in Syria. He accuses Iran of planning to build precision-guided missile factories in Lebanon, amid tensions on that border.

“We want to know and we must know, what the U.S. position will be if we do enter into some wider confrontation with Iran,” Michael Oren, a deputy Israeli cabinet minister and former ambassador to Washington, said on Israel’s Channel 13 TV.

U.S. Secretary of State Rex Tillerson has called on Iran to withdraw its military and militia from Syria. But with Russia the dominant international player in Syria, it is unclear what practical steps Washington could take to ease Israeli concerns.

Trump and Netanyahu will also discuss efforts led by the president’s son-in-law and senior adviser Jared Kushner to develop an Israeli-Palestinian peace proposal, which the president has said could lead to the “deal of the century.”

The process has gone nowhere, however, since Trump’s recognition of Jerusalem as Israel’s capital in December and announcement of the move of the U.S. embassy to the city in May, shortly after Israel’s 70th anniversary.

Kushner is on the defensive amid investigations into alleged meddling by Russia in the 2016 presidential campaign. It is a case that has bedeviled Trump, who – like Netanyahu – has accused law enforcement officials of conducting a “witchhunt”.

Palestinian leaders have reacted to the change in decades-old U.S. policy on Jerusalem by rejecting Washington’s traditional leadership of peace efforts.

‘ROUTINE CHECK-IN’

No major announcements or breakthroughs are expected from Trump’s talks with Netanyahu, whose relationship with the president has been among the closest of any other world leader.

“This is a routine check-in meeting,” one U.S. official said of Netanyahu’s second visit to the Trump White House.

For Netanyahu, the Oval Office meeting and an address to the pro-Israel lobby group AIPAC on Tuesday offered little respite from his legal troubles in Israel.

His former spokesman, Nir Hefetz, is one of the suspects in a case revolving around allegations that regulatory favors were granted to Israel’s biggest telecoms company and that in return, its owners provided favorable coverage for Netanyahu on a news site they controlled.

Netanyahu awaits a decision by Israel’s attorney general on whether to indict him, as police have recommended in two other bribery cases.

U.S. officials have said the investigations in Israel are not expected to affect Netanyahu’s talks.

The Trump administration remains hopeful the Palestinians can be drawn back into negotiations after a “cooling-off” period, one U.S. official said, while conceding there had been no sign that would happen any time soon.

Some analysts believe Kushner’s ability to run the Middle East initiative has been further handicapped by his loss of access to certain valued U.S. intelligence because of a recent White House clampdown on access to such secrets for those without full security clearance.

The Trump administration has no plans to use Netanyahu’s visit to roll out peace proposals Kushner’s team is crafting, a second U.S. official said, speaking on condition of anonymity.

“We are as committed to peace as ever,” the official said. “We will release the plan when it is done and the time is right.”

U.S. officials have told Reuters it would deal with all major issues, including Jerusalem, borders, security and the future of Jewish settlements on occupied land and Palestinian refugees, and would also urge Saudi Arabia and other Gulf states to provide significant financial support to the Palestinians.

(Reporting by Matt Spetalnick in Washington and Jeffrey Heller in Jersusalem; Editing by Daniel Wallis, William Maclean)

Twenty states sue federal government, seeking end to Obamacare

FILE PHOTO: A sign on an insurance store advertises Obamacare in San Ysidro, San Diego, California, U.S., October 26, 2017. REUTERS/Mike Blake/File Photo

(Reuters) – A coalition of 20 U.S. states sued the federal government on Monday over Obamacare, claiming the law was no longer constitutional after the repeal last year of its requirement that people have health insurance or pay a fine.

Led by Texas Attorney General Ken Paxton and Wisconsin Attorney General Brad Schimel, the lawsuit said that without the individual mandate, which was eliminated as part of the Republican tax law signed by President Donald Trump in December, Obamacare was unlawful.

“The U.S. Supreme Court already admitted that an individual mandate without a tax penalty is unconstitutional,” Paxton said in a statement. “With no remaining legitimate basis for the law, it is time that Americans are finally free from the stranglehold of Obamacare, once and for all,” he said.

The U.S. Justice Department did not immediately respond to a request for comment on whether the Trump administration would defend the law in court.

The individual mandate in Obamacare was meant to ensure a viable health insurance market by forcing younger and healthier Americans to buy coverage.

Republicans have opposed the 2010 law formally known as the Affordable Care Act, the signature domestic policy achievement of Trump’s Democratic predecessor Barack Obama, since its inception.

Paxton and Schimel, both Republicans, were joined in the lawsuit by 18 states including Arizona, Florida, Georgia, Utah and West Virginia. It was filed in U.S. District Court in the Northern District of Texas.

(Reporting by Eric Beech in Washington)

Trump backs effort to improve gun background checks: White House

Placards and letters are shown, signed by worshipers at Christ Church United Methodist Church in response to shootings in nearby Parkland, Florida which will be sent to legislators and officials in Fort Lauderdale, Florida, U.S. February 18, 2018. REUTERS/Joe Skipper

By Jeff Mason

PALM BEACH, Fla. (Reuters) – The White House said on Monday that President Donald Trump supports efforts to improve federal background checks for gun purchases, days after a shooting at a Florida school killed 17 people.

Trump spoke to Senator John Cornyn, a Republican, on Friday about a bi-partisan bill that he and Democratic Senator Chris Murphy introduced to improve federal compliance with criminal background checks, White House spokeswoman Sarah Sanders said.

“While discussions are ongoing and revisions are being considered, the president is supportive of efforts to improve the federal background check system,” Sanders said in a statement.

Previous mass shootings in the United States have also stirred outrage and calls for action to tighten U.S. gun laws, with few results in Congress.

Students are mobilizing around the country in favor of stronger gun laws after the deadliest high school shooting in U.S. history took place on Wednesday at Marjory Stoneman Douglas High School, where a former student is accused of murdering 17 people using an assault-style rifle.

Trump, who visited survivors of the shooting and law enforcement officials on Friday night, is a strong supporter of gun rights and won the endorsement of the National Rifle Association, the powerful gun lobby group, for his 2016 presidential campaign.

Many Republicans generally oppose measures to tighten gun restrictions, citing the U.S. Constitution’s Second Amendment protection of the right to bear arms.

Former President Barack Obama and many of his fellow Democrats unsuccessfully pushed to pass gun control legislation after a gunman killed 20 young children and six adults at Sandy Hook Elementary School in Newtown, Connecticut, in 2012.

Cornyn and Murphy introduced their bill to improve federal background checks last November, days after a gunman killed more than two dozen people in a church in Texas.

The bill, called the Fix NICS Act, would ensure that states and federal agencies comply with existing law on reporting criminal history records to the national background check system.

Cornyn, of Texas, had complained when introducing the legislation that compliance by agencies was “lousy.”

Students are planning a “March For Our Lives” in Washington on March 24 to call attention to school safety and ask lawmakers to enact gun control.

Some students reacted with caution to Trump’s support on background checks.

“We want to prevent mass shootings from happening and while this could have happened with other types of weapons, NeverAgain believes school safety should be priority right now, not just background checks,” said Marjory Stoneman Douglas High School student Kali Clougherty, 18, referring to a campaign for gun control. “This is about the victims. Don’t forget that, we never will.”

(Additional reporting by Timothy Gardner in Washington and Katanga Johnson in Florida; Editing by Alistair Bell)

Senate Republican leader embraces Trump immigration plan

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

By Richard Cowan

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

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

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

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

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

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

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

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

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

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

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

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

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

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

By David Morgan, Amanda Becker and Richard Cowan

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

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

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

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

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

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

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

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

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

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

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

PRESSURE ON MARKETS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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