Happy Tuesday and welcome back to On The Money, an Alex Morgan fan newsletter. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

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THE BIG DEAL—Democrats set stage for next shutdown fight while GOP, White House scrap meeting to prevent funding lapse: House Democrats on Tuesday advanced a Homeland Security spending bill that included no funding for President TrumpDonald John TrumpTop Armed Services Republican plots push for 0B defense budget Amash exits House Freedom Caucus in wake of Trump impeachment stance Amash exits House Freedom Caucus in wake of Trump impeachment stance MORE’s proposed border wall, paving the way for a standoff with the Trump administration on the issue that led to the long partial government shutdown that ended earlier this year.

The House Appropriations Committee advanced the Homeland Security spending bill, which would also restrict a number of Trump’s other immigration moves, in a party-line 29-20 vote. The House is expected to take up and pass the bill later in June.

The risk: Earlier this year, Trump triggered 35-day shutdown over what he called insufficient funding for his border wall. Republican lawmakers warned Tuesday that the president would not hesitate to shutter the government a second time over the issue.

• Trump requested $8.8 billion for the wall in his 2020 budget proposal, more than the $5.7 billion Congress rejected in the deal that ended the shutdown, which only provided $1.38 billion.

• Following that agreement earlier this year, the president declared a state of national emergency over the border, which would allow him to reprogram certain funds from departments such as the Pentagon toward building the wall.

• Tuesday’s bill rescinds $601 million from Customs and Border Protection, offsetting the amount Trump diverted from the Treasury Forfeiture Fund toward the project.

 

While the House teed up a bill that could end up a sticking point in a government shutdown, a budget meeting between top senators and administration was postponed.

The group had been set to meet on Tuesday afternoon in an attempt to get on the same page about how to move forward on a government funding bill ahead of the Oct. 1 deadline to avoid a shutdown.

But Senate Appropriations Committee Chairman Richard ShelbyRichard Craig ShelbySenate GOP, White House to meet on avoiding October shutdown Senate GOP, White House to meet on avoiding October shutdown On The Money: House Democrats pull bill giving lawmakers raise | Senate GOP, White House to meet on avoiding October shutdown | Trump threatens tariffs if Xi skips G-20 | Trump hits Chamber over trade | House passes IRS bill without ‘Free File’ program MORE (R-Ala.) said the powwow was canceled because of scheduling conflicts with Treasury Secretary Steven MnuchinSteven Terner MnuchinSenate GOP, White House to meet on avoiding October shutdown On The Money: House Democrats pull bill giving lawmakers raise | Senate GOP, White House to meet on avoiding October shutdown | Trump threatens tariffs if Xi skips G-20 | Trump hits Chamber over trade | House passes IRS bill without ‘Free File’ program This week: House Democrats escalate battle over Mueller report MORE

Shelby, Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellSenate GOP, White House to meet on avoiding October shutdown Senate GOP, White House to meet on avoiding October shutdown Press: How ‘Nervous Nancy’ trumped Trump MORE (R-Ky.), acting White House chief of staff Mick MulvaneyJohn (Mick) Michael MulvaneySenate GOP, White House to meet on avoiding October shutdown Senate GOP, White House to meet on avoiding October shutdown Republicans warn Cuccinelli won’t get confirmed by GOP Senate MORE, Mnuchin and Office of Management and Budget Director Russell Vought had been set to meet on Tuesday afternoon, but were rescheduled the meeting for Wednesday.

 

The group has a difficult task ahead of them:

• Lawmakers have to pass 12 appropriations bills, either individually or as part of a package. So far the committee has passed none amid a stalemate over how to lift defense and nondefense spending caps.

• Without an agreement, steep, across-the-board cuts, known as sequestration, are set to kick back in.

Of course, the one-day delay won’t make or break the negotiations. But the early attempt at dealmaking shows how eager the Trump officials and senators are too avoid a shutdown, and how long it may take to get there.

 

On tap tomorrow

• The House Financial Services Committee continues its markup, 10 a.m.

• A House Education and Labor subcommittee holds a hearing on Department of Labor overtime protections, 10:30 a.m.

• A Senate Finance subcommittee holds a hearing on China’s Belt and Road initiative, 2:30 p.m.

 

LEADING THE DAY

Trump hits Fed over high interest rates: ‘They don’t have a clue!’  President Trump on Tuesday complained that the Federal Reserve doesn’t “have a clue” amid a series of tweets defending his use of tariffs and alleging that multiple currencies have been devalued against the dollar.

Trump has long criticized the Fed over the central bank’s decision to raise interest rates. He reiterated that point on Tuesday for the second consecutive day while sharing a Bloomberg opinion piece that argued the low cost of travel to Europe has led to an overabundance of tourists.

“This is because the Euro and other currencies are devalued against the dollar, putting the U.S. at a big disadvantage. The Fed Interest rate way too high, added to ridiculous quantitative tightening! They don’t have a clue!” Trump tweeted.
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House kicks off antitrust probe into tech giants: Congress on Tuesday opened an investigation into tech companies and antitrust issues with a hearing on how the industry has upended the business model of the news media and other publishers.

At the first hearing in the House Judiciary Committee’s bipartisan investigation into Silicon Valley’s market power, the panel’s subcommittee on antitrust heard from media advocates who accused internet giants such as Facebook and Google of having a stranglehold on digital advertising, and who urged lawmakers to level the playing field for publishers.

“Unfortunately in the news business, free riding by dominant online platforms, which aggregate and then reserve our content, has led to the lion’s share of online advertising dollars generated off the back of news going to the platforms,” said David Pitofsky, the general counsel for News Corp., which owns The Wall Street Journal. Here’s more from The Hill’s Harper Neidig.

 

• The hearing came amid an unprecedented level of scrutiny in Washington over tech giants’ market power and impact on competitors and consumers. But lawmakers have generally given little attention to what many see as the threat the tech industry poses to the news industry and the damage done to local news outlets.

• The bipartisan leaders of the Judiciary Committee are pushing a short-term solution backed by the newspaper industry that would grant an antitrust exemption to media outlets, allowing them to collectively negotiate with companies like Facebook and Google for a larger slice of the digital advertising pie.

 

GOOD TO KNOW

• Rep. Debbie DingellDeborah (Debbie) Ann DingellSteyer group targeting 12 congressional Democrats over impeachment Steyer group targeting 12 congressional Democrats over impeachment ‘Medicare for All’ gets new boost from high-ranking House Dem MORE (D-Mich.) said Tuesday that President Trump’s now suspended threat to impose tariffs on Mexico was a “grenade” in his attempt to secure an updated version of the North American Free Trade Agreement.

• Maryland Gov. Larry Hogan (R) on Tuesday asked Treasury Secretary Steven Mnuchin to rethink his decision to delay the release of a $20 bill featuring abolitionist and suffragette Harriet Tubman.

• The liberal group Tax March announced on Tuesday that it is launching a bus tour to take aim at the 2017 Republican tax-cut law and to urge politicians and activists to push for policies that increase taxes on the rich.

• The Treasury Department and IRS on Tuesday issued final regulations aimed at preventing residents of blue states from circumventing the GOP’s tax law’s cap on the state and local tax (SALT) deduction.

• Jon Stewart on Tuesday excoriated lawmakers in emotional testimony for failing to attend a September 11th Victim Compensation Fund hearing, calling it “shameful” and “a stain on this institution.”

• Climate change poses a high risk to federal spending, the Government Accountability Office (GAO) reaffirmed in a biannual report on the subject released Tuesday.

• Acting White House chief of staff Mick Mulvaney on Tuesday said he believes the White House and congressional Democrats will continue to work together on select subjects despite mounting tensions between President Trump and Speaker Nancy PelosiNancy PelosiFeehery: Pelosi’s dangerous impeachment game Feehery: Pelosi’s dangerous impeachment game Press: How ‘Nervous Nancy’ trumped Trump MORE (D-Calif.).

ODDS AND ENDS

• Ten Democratic attorneys general from nine states and Washington, D.C., on Tuesday filed a lawsuit to block the $26 billion T-Mobile-Sprint merger, arguing that combining two of the country’s four largest mobile carriers could harm competition and drastically raise prices for consumers.

House Democrats and the Department of Justice (DOJ) on Monday de-escalated tensions in Washington for the first time in months by striking a deal that will provide lawmakers with critical documents underlying special counsel Robert MuellerRobert (Bob) Swan MuellerSchiff says Intel panel will hold ‘series’ of hearings on Mueller report Schiff says Intel panel will hold ‘series’ of hearings on Mueller report Key House panel faces pivotal week on Trump MORE’s report on Russia’s election interference. 

The agreement marks a rare case of cooperation between Democrats, who are pursuing investigations into whether President TrumpDonald John TrumpHouse panel seeks to block Pentagon funds for border wall Giuliani evokes Joseph McCarthy in criticism of Pelosi Giuliani evokes Joseph McCarthy in criticism of Pelosi MORE obstructed Mueller’s probe, and an administration that’s largely rejected congressional requests for information and witness testimony.

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The breakthrough also seems to have defused — at least temporarily — a push by Democrats to punish key administration officials for their refusal to cooperate in the congressional probes. 

The House Judiciary Committee last month had voted to hold Attorney General William BarrWilliam Pelham BarrDemocrats needle Trump with Watergate witness Democrats needle Trump with Watergate witness Barr compares his return to DOJ to D-Day invasion MORE in contempt of Congress for failing to comply with the panel’s subpoena for Mueller’s full unredacted report and underlying documents.

But Democrats are now opting to bring to the floor a softer resolution, one that grants the Judiciary panel new legal tools to obtain disputed information and stops short of holding any individuals in criminal contempt.

“Given our conversations with the Department, I will hold the criminal contempt process in abeyance for now,” Judiciary Chairman Jerrold NadlerJerrold (Jerry) Lewis NadlerJudiciary Democrat: ‘I don’t have any difficulty’ with Pelosi ‘prison’ comment Judiciary Democrat: ‘I don’t have any difficulty’ with Pelosi ‘prison’ comment Who are the House Democrats backing Trump impeachment? MORE (D-N.Y.) said Monday in a statement announcing the deal. “We have agreed to allow the Department time to demonstrate compliance with this agreement.”

“If the Department proceeds in good faith and we are able to obtain everything that we need,” he added, “then there will be no need to take further steps.” 

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The agreement constitutes a victory for Nadler, who’s come under friendly fire from some Democrats for his handling of the Judiciary panel’s examination of Mueller’s findings, particularly the open question — left unanswered by Mueller in his 448-page report — of whether Trump obstructed justice during the course of the 22-month probe. Nadler is leading the negotiations to have the reluctant Mueller appear publicly before the committee, and some lawmakers are frustrated that the Judiciary chairman hasn’t secured the testimony nearly two months after Mueller’s report was released.

The DOJ’s decision also provides a temporary reprieve for Speaker Nancy PelosiNancy PelosiGiuliani evokes Joseph McCarthy in criticism of Pelosi Giuliani evokes Joseph McCarthy in criticism of Pelosi Will Hollywood be coaxed to the political middle? MORE (D-Calif.), who has been under similar pressure to demonstrate progress in the Democrats’ investigations of Trump’s alleged misconduct amid a growing clamor from liberal members of her caucus to adopt a more aggressive approach.

The president earlier this year had vowed to fight “all the subpoenas,” and the White House stonewalling has led dozens of Democrats to endorse the launch of a formal impeachment inquiry — a move Pelosi has long opposed for lack of popular support outside Congress.

Many impeachment supporters have argued that starting the process would lend the Democrats legal advantages to help them obtain the disputed information. The DOJ’s partial compliance with Nadler’s request gives Pelosi ammunition to say her strategy is working — without taking the divisive step toward impeachment.

Republicans also hailed the agreement as a rare show of comity on an issue that has practically been defined by partisan bickering.

Rep. Doug CollinsDouglas (Doug) Allen CollinsDemocrats needle Trump with Watergate witness Democrats needle Trump with Watergate witness Top Judiciary Republican: Mueller hearing could violate ‘decency and decorum’ rules MORE (Ga.), the top Republican on the Judiciary Committee, said the administration’s “good faith provision … debunks claims that the White House is stonewalling Congress.”

The Justice Department on Monday said it was “pleased” with the committee’s decision to continue negotiations without pursuing criminal contempt. However, the agency warned it would pull out of the talks if lawmakers move forward with the contempt resolution. 

“The Department of Justice remains committed to appropriately accommodating Congress’s legitimate interests related to the special counsel’s Investigation and will continue to do so provided the previously voted-upon resolution does not advance,” DOJ spokeswoman Kerri Kupec said in a statement. 

Even as criminal contempt appears to be off the table for now, the House is gearing up for a vote on a different resolution that would authorize Nadler to go to court to obtain the Mueller documents.

While lawmakers have described the resolution, scheduled for a Tuesday vote, as a contempt measure, the text itself doesn’t mention the word contempt.

And legal experts told The Hill that the resolution is not like the criminal contempt one approved by the House Judiciary Committee, where Democrats would have to ask the U.S. attorney for D.C. to pursue a case against the Justice Department to get the documents.

When faced with similar criminal contempt measures out of the House in the past, the U.S. attorney’s office has uniformly rejected the calls for prosecution. That scenario is all but certain to play out again if the House were to move forward with a criminal resolution.

Rather, this resolution would give Nadler the power to go to court for an order requiring the DOJ to hand over the documents he has sought. It also gives other committee chairs the authority to ask the Bipartisan Legal Advisory Group — a group of top lawmakers who oversee the House general counsel — for permission to file similar legal actions.

Thomas Spulak, who served as the general counsel for the Democratic-controlled House from 1994 to 1995, said the civil citation serves the same purpose as a contempt resolution in that they both seek to obtain documents and testimony otherwise unavailable to Congress.

But, he said, no one is being held in contempt in this case, unless the DOJ doesn’t comply with an order from a judge to hand over documents.

“We haven’t gotten to contempt yet,” Spulak said.

Tuesday’s vote targets both Barr and former White House counsel Don McGahn, who have both rejected congressional subpoenas. 

And while Pelosi has pointed to Democrats’ legal victories in the Trump investigations as reason to hold back on impeachment, the lack of impeachment proceedings could end up hampering a court battle to get all of the redacted Mueller materials.

Some of the information not included in the public version of the Mueller report is information presented before a grand jury and can’t be released unless a judge decides it fits certain exemptions. One of those exemptions is for the material’s use in an impeachment proceeding. 

But with Democratic leadership ruling out that option for now, it’s unlikely at this point that a judge would order the Justice Department to hand over the grand jury information to Congress.

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Photos of U.S travelers and license plate images were recently stolen from a database maintained by Customs and Border Protection (CBP), the agency confirmed on Monday. 

In a statement to The Hill, a CBP spokesperson said it learned on May 21 that a “subcontractor … had transferred copies of license plate images and traveler images collected by CBP to the subcontractor’s company network.” 

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“The subcontractor’s network was subsequently compromised by a malicious cyber-attack,” the spokesperson said.

The spokesperson added the subcontractor had transferred the photos to its own network “in violation of CBP policies and without CBP’s authorization or knowledge.” 

The federal law enforcement agency maintains an expansive photo database that includes photos of people traveling into and out of the country. CBP, which is part of the Department of Homeland Security (DHS), has not named the subcontractor involved in the data breach.

“As of today, none of the image data has been identified on the Dark Web or internet,” the border agency said in a statement. “CBP has alerted Members of Congress and is working closely with other law enforcement agencies and cybersecurity entities, and its own Office of Professional Responsibility to actively investigate the incident.” 

It is unclear what photos were taken, and if they are related to the database of visa and passport photos the CBP maintains in order to assist with its facial recognition technology program expanding to airports across the U.S.

The agency spokesperson declined to share further information on the extent of the breach, saying in an email responding to a list of questions, “I don’t have any additional information to share at this time.”

Perceptics, a company that sells license plate reader technology to the U.S. government, confirmed in May that it had been hacked. The admission came after hackers posted the internal data of the company to the dark web, according to an article from tech outlet Motherboard.

“We are aware of the breach and have notified our customers. We can’t comment any further because it is an ongoing legal investigation,” Casey Self, director of marketing for Perceptics, said in a statement to Motherboard at the time.

The company contracts with the U.S. government to sell license plate readers, driver cameras and under-vehicle cameras to place at borders between the U.S., Canada and Mexico. 

Perceptics did not immediately respond to The Hill’s request for comment. 

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WHO WATCHES THE WATCHERS: President TrumpDonald John TrumpHouse panel seeks to block Pentagon funds for border wall Giuliani evokes Joseph McCarthy in criticism of Pelosi Giuliani evokes Joseph McCarthy in criticism of Pelosi MORE has quietly appointed his Social Security Administration (SSA) inspector general to also oversee a much different agency: the Interior Department.

On May 28, Gail Ennis began her second job overseeing the Interior Department’s Office of the Inspector General (OIG), a role she will keep for the foreseeable future, the OIG confirmed to The Hill.

The Trump administration is still awaiting the confirmation of Mark Greenblatt, the former assistant inspector general for investigations at the Commerce Department, to formally head the Interior’s OIG office.

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Ennis was sworn into the SSA role just five months ago, her first time serving as an inspector general. Her professional background is in securities litigation, working previously as a partner at the Washington, D.C.-based law firm WilmerHale, where she reportedly earned $2 million a year.

At the SSA, Ennis has most recently led efforts to thwart scam Social Security phone calls. At the Interior department, she will oversee investigations into newly appointed Secretary David Bernhardt’s lobbying ties and two ongoing Justice Department investigations into former Interior Secretary Ryan ZinkeRyan Keith ZinkeOvernight Energy: Investigators found Zinke’s MAGA socks violated Hatch Act | Major union endorses Green New Deal | Group sues Trump over fishing permits said to endanger sea turtles Overnight Energy: Investigators found Zinke’s MAGA socks violated Hatch Act | Major union endorses Green New Deal | Group sues Trump over fishing permits said to endanger sea turtles Federal investigators concluded Ryan Zinke’s MAGA socks violated Hatch Act MORE. One of those investigations has reportedly made it to the grand jury.

The appointment of Ennis to Interior was not formally announced by the White House, however, the Interior Department’s website was updated last week to reflect her new position.

Ennis replaces former acting Inspector General Mary Kendall, who retired from the office at the end of May. Kendall oversaw multiple ethics investigations into Zinke, including recommending a number of them to the Justice Department for further investigation. Those investigations reportedly played a heavy factor in Zinke’s decision to leave the administration early this year.

In addition to the ongoing investigations into Interior’s current and former secretaries, the OIG is also investigating six high-ranking interior officials for ethics concerns.

Read more about the appointment here.

 

Happy Monday. And welcome to Overnight Energy, The Hill’s roundup of the latest energy and environment news.

Please send tips and comments to Miranda Green, mgreen@thehill.com and Rebecca Beitsch, rbeitsch@thehill.com. Follow us on Twitter: @mirandacgreen, @rebeccabeitsch and @thehill.

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STATES VS FEDS VS PIPELINES: The Environmental Protection Agency (EPA) issued a guidance Friday that critics say seeks to limit states’ influence over controversial pipeline projects.

Federal law through the Clean Water Act essentially gives states veto power over large projects that cut through their rivers and streams if they believe those projects would negatively impact their water quality.

Spurred by an April executive order from President Trump, the EPA’s guidance encourages states to more quickly process project applications, even if they don’t have all the information yet.

“This seems to be another attempt by the Trump Administration to limit states, and by extension local communities, ability to protect their own waterways and to give pipeline developers or other project proponents an ability to skip over one of the steps in the process that had been there to protect local waterways,” said Nathan Matthews, a senior attorney with the Sierra Club, one of the environmental groups weighing action against the EPA.

The Clean Water Act gives states a year to weigh permits and determine how projects would impact their water, but some feel states have used the process to block major projects.

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“I welcome this announcement and hope EPA’s new guidance will reduce abuse of the Clean Water Act to block infrastructure needed to provide reliable and affordable energy,” Sen. Lisa MurkowskiLisa Ann MurkowskiOvernight Energy: Lawmaker warns White House not to influence science in climate report | Trump appeals Arctic drilling decision | Officials promote natural gas exports as ‘freedom gas’ Trump administration appeals ruling that blocked offshore Arctic drilling Senate GOP vows to quickly quash any impeachment charges MORE (R-Alaska) said of the guidance in a press release.

“EPA’s updated guidance will maintain vital protections for our water resources while promoting responsible development of our energy resources.”

The EPA said states should not take more time than is reasonable to review permits, encouraging them to “promptly begin evaluating the request to ensure timely action.”

The guidance says the timeline for reviewing the permits begins as soon as they are filed, and states should not wait for an environmental assessment to be completed as that may take longer than the year states are granted. The guidance also notes that the clock doesn’t stop because states have requested more information.  

States have recently sidelined two large projects using the certification process through the Clean Water Act, actions that contradict the energy dominance strategy promoted by the Trump administration.

New York denied a certification for the Constitution Pipeline, a 124-mile natural gas pipeline that would have run from Pennsylvania to New York, crossing rivers more than 200 times. Washington state denied certification for the Millennium Coal Terminal, a shipping port for large stocks of coal.

“The Trump Administration’s attempt to attack our state’s right to protect the health and well-being of our residents, without any consultation with states or tribal governments, is wrong,” Washington state Attorney General Bob Ferguson said in a statement to The Hill. “It will undermine four decades of state and federal cooperation in environmental stewardship.”

But even states with more conservative leadership have spoken out for maintaining states’ rights under the law.

Read more about the pipeline guidance here.

 

BATTLE OVER SCIENCE: Environmental Protection Agency is battling its own board of science advisers over its controversial plan to dismiss certain types of scientific research from consideration when issuing rules.

A meeting this week between the agency and some of the nation’s top scientists highlighted the growing rift between the EPA and the scientific community, with members of the Science Advisory Board (SAB) pushing back on the administration’s efforts to bar consideration of studies that don’t make their underlying data public.

Critics say the move would omit important research from EPA consideration and lead to a dramatic rollback of existing regulations.

The SAB, a team of more than 40 of the nation’s top scientists, have been asking to weigh in on the controversial proposal since it was unveiled more than a year ago.

On Wednesday, it said it would do so — despite a request from the agency to review only a narrow portion of the rule.

There’s mistrust between the scientific community and EPA’s leaders in the Trump administration.

Then-EPA Administrator Scott PruittEdward (Scott) Scott PruittBattle over science roils EPA EPA head accuses reporters, green group of ‘colluding’ on press coverage EPA head accuses reporters, green group of ‘colluding’ on press coverage MORE said the proposal, called Strengthening Transparency in Regulatory Science, would battle “secret science” when it was first introduced. That spurred scientists to call the proposal “censored science.”

EPA Administrator Andrew WheelerAndrew WheelerBattle over science roils EPA Overnight Energy: Inslee says DNC won’t hold climate debate | Democrats fear Trump opening door to mining in Grand Canyon | Interior pick gets surprising support from greens | Ocasio-Cortez says effective climate plan needs T Overnight Energy: Inslee says DNC won’t hold climate debate | Democrats fear Trump opening door to mining in Grand Canyon | Interior pick gets surprising support from greens | Ocasio-Cortez says effective climate plan needs T MORE on Wednesday appeared before the board, vowing to improve the relationship between it and the agency.

“I’ll be the first to admit that we have not utilized you in ways that we should. We can and we will do better,” Wheeler said.

But many in the science and environmental community walked away from the meeting disheartened at what they see is the agency’s plan to amplify pet policies and the voices of industry over those of scientists.

Read more about the tensions here.

 

ON TAP TOMORROW:

The House Energy and Commerce Committee kicks off the week by hosting four former EPA administrators who will weigh in on the direction of the agency.

The House Budget Committee will weigh the economic and budgetary effects of climate change.

Also on Tuesday are hearings on space exploration, resiliency in federal building construction and a markup of the National Flood Insurance Program Reauthorization Act.

 

OUTSIDE THE BELTWAY:

New Mexico governor says no to high-level nuclear waste, the Associated Press reports.

After pause, Maine may have missed the boat on offshore wind, the Portland Press Herald reports.

Washington state AG sues Trump administration over water quality standards, the Associated Press reports.

Trudeau announces Canadian ban of single-use plastics as early as 2021, we report.

 

ICYMI:

Stories from Monday and over the weekend…

Battle over science roils EPA

Trump appoints Social Security Administration watchdog to also oversee Interior

Trudeau announces Canadian ban of single-use plastics as early as 2021

Conservative groups tell Congress: ‘We oppose any carbon tax’

EPA issues guidance critics say would limit state’s authorities over pipeline projects

President TrumpDonald John TrumpHouse panel seeks to block Pentagon funds for border wall Giuliani evokes Joseph McCarthy in criticism of Pelosi Giuliani evokes Joseph McCarthy in criticism of Pelosi MORE on Monday suggested he may take action to address what he deems an unfair tariff imbalance on wine imports and exports with France.

The president was defending his use of tariffs against China during an interview with CNBC when he cited other examples where he believes the U.S. is being treated unfairly on trade.

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“You know, France charges us a lot for the wine and yet we charge them little for French wine,” Trump said.

The president claimed that winemakers in California complained to him that French wine can be imported at little cost, but that they have to pay high duties to export their products into France.

“And you know what, it’s not fair,” Trump said. “We’ll do something about it.”

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France does not set its own tariffs on wine — the duties are determined by the European Union. As a result, any tariffs imposed by the U.S. would apply to the entire trading bloc.

Trump, who does not drink alcohol, has raised the issue in the past. He tweeted in November that France “makes it very hard for the U.S. to sell its wines into France, and charges big Tariffs, whereas the U.S. makes it easy for French wines, and charges very small Tariffs.”

Trump met last week with French President Emmanuel MacronEmmanuel Jean-Michel MacronTrump administration imposes sanctions on Iranian petrochemical group Trump administration imposes sanctions on Iranian petrochemical group Six notable moments from Trump’s Europe trip MORE following a ceremony in Normandy to commemorate the 75th anniversary of the D-Day invasion. It’s unclear if the two men discussed tariffs, or wine tariffs in particular, during their bilateral meeting.

Infowars has agreed to settle a copyright lawsuit with the creator of Pepe the Frog over the conspiracy website’s sale of a poster featuring the character.

Matt Furie, who created the frog character featured in the poster sold on the Infowars website, will receive a $15,000 settlement in the case.

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Furie had sued the website in 2018 for copyright infringement over the poster, which depicted Pepe the Frog alongside figures like President TrumpDonald John TrumpHouse panel seeks to block Pentagon funds for border wall Giuliani evokes Joseph McCarthy in criticism of Pelosi Giuliani evokes Joseph McCarthy in criticism of Pelosi MORE, Alex Jones and Milo Yiannopoulos.

A judge last month ordered the lawsuit to go to trial after finding that some of the copyright questions should be resolved by a jury.

But this settlement, announced by Furie’s attorneys on Monday, will stop that case from moving forward.

The terms of the settlement also bans Infowars from selling any other merchandise featuring Pepe and that the site destroy any remaining Pepe posters, according to Furie’s legal team.

“Infowars had said it planned to ‘free Pepe once and for all,’ but it backed down rather than face trial and lose,” Furie’s lawyer Louis Tompros said in a statement.

“If anyone thinks they can make money selling unauthorized Pepe merchandise, they’re wrong. Mr. Furie will continue to enforce his copyrights, particularly against anyone trying to profit by associating Pepe with hateful images or ideas.”

In an email to The Hill, Infowars attorney Marc Randazza described the $15,000 payout as “measly.”

“Frankly, they’d have made more money if they waited tables with Alexandria Ocasio-CortezAlexandria Ocasio-CortezWho are the House Democrats backing Trump impeachment? Who are the House Democrats backing Trump impeachment? Banning former members of Congress from lobbying won’t ‘drain the swamp’ MORE for three months,” Randazza wrote.

Furie has taken legal action in the past to stop others from using his Pepe character. The frog has been coopted by so-called alt-right communities, and was labeled a “hate symbol” by the Anti-Defamation League in 2016.

He also killed off his own creation in 2017.

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Global growth is threatened as international trade conflicts between the United States and China have “intensified,” Group of 20 finance leaders reportedly said Sunday.

At the central bank governors meeting in Japan, G20 leaders said in a statement “growth remains low and risks remain titled to the downside,” according to Reuters.

“We will continue to address these risks and stand ready to take further action,” G20 said according to the report.

However, language in the final statement did not include a drafted clause aimed at resolving trade tensions, according to Reuters. 

Reuters reports sources say the omission was pushed for by the United States. 

G20 leaders also agreed to create common rules by 2020 to close loopholes tech companies use to reduce corporate taxes, according to Reuters.

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The U.S. and China have been in an escalating trade war, with President TrumpDonald John TrumpTrump hits Comcast, MSNBC over ‘hatred,’ ‘fake news’ Trump hits Comcast, MSNBC over ‘hatred,’ ‘fake news’ Public support for liberal policymaking at 60-year high, survey says MORE threatening another round of tariffs on Chinese imports if a deal is not soon reached. 

The Trump administration has raised the stakes on Turkey over the NATO ally’s plan to buy a Russian missile defense system, threatening new repercussions that put billions of dollars on the line for both countries if Ankara goes through with the deal.

The Pentagon announced Friday it would pull Turkey from participation in building and maintaining the F-35 Lightning II fighter, moving industrial operations to other countries, unless Ankara gives up its plans to purchase the Russian-made S-400 surface-to-air missile defense system.

The United States is “unwinding” Turkey’s involvement in the F-35 program, a top Pentagon official told reporters on Friday.

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“As we have very clearly communicated at all levels, Turkey will not receive the F-35 if Turkey takes delivery of the S-400 system. Thus, we need to begin unwinding Turkey’s participation in the F-35 program,” said Ellen Lord, the undersecretary of Defense for acquisition and sustainment.

Contracts given to Turkish companies, which are responsible for building 937 parts used in the F-35 — including those used in the landing gear and aircraft’s main body — would begin to be phased out in early 2020 through a “very disciplined and graceful wind-down,” Lord said.

“We want to have a process that is not disruptive to the program and allows the Turks to wind down their activities, as well,” she added.

In addition, the Pentagon would pull Turkish applicants from a training program that teaches pilots to fly the F-35, order that all Turkish personnel linked to the F-35 program leave the United States, and rescind invitations to allow Turkey to participate in an annual F-35 roundtable or future decisions on the aircraft.

The moves, outlined in a letter sent this week by acting Defense Secretary Patrick ShanahanPatrick Michael ShanahanOvernight Defense: US ratchets up pressure on Turkey over F-35 | Near-collision between Russia, US warships | West Point cadet identified Overnight Defense: US ratchets up pressure on Turkey over F-35 | Near-collision between Russia, US warships | West Point cadet identified US lays out penalties to Turkey on Russia MORE to the Turkish defense minister, would take place by July 31 if the nation still decides to buy the Russian system.

“If Turkey procures the S-400 … our two countries must develop a plan to discontinue Turkey’s participation in the F-35 program,” Shanahan wrote to Turkish Defense Minister Hulusi Akar. “While we seek to maintain our valued relationship, Turkey will not receive the F-35 if Turkey takes delivery of the S-400.”

Should Turkey receive the S-400 before July 31, the planned penalties will be “greatly accelerated,” Lord said.

Turkey, one of nine partner countries involved in the F-35, plans to eventually buy at least 100 of the advanced fighter jets and is expected to play a significant role in sustaining the aircraft further down the road.

In the past year, however, Washington has failed to sway Ankara from its plan to buy the S-400, which is not compatible with NATO systems. U.S. officials fear it will allow Moscow to gather closely guarded information on the F-35, which is made by Lockheed Martin.

“We do not want to have the F-35 in close proximity to the S-400 over a period of time because of the ability to understand the profile of the F-35,” Lord said.

Shanahan, meanwhile, said in his letter that Turkey’s S-400 buy will hinder the country’s “ability to enhance or maintain cooperation with the United States and within NATO, lead to Turkish strategic and economic over-dependence on Russia, and undermine Turkey’s very capable defense industry and ambitious economic development goals.”

Turkey first made the S-400 deal with Russia for a reported $2.5 billion in 2017, brushing aside warnings from the United States, which cautioned that such a move would have political repercussions.

The head of Russian state arms exporter Rosoboronexport said in April that Moscow plans to start delivering the missile system in July, while the Turkish Foreign Ministry has repeatedly said the country doesn’t intend to give up its S-400 purchase.

Tensions have reached a boiling point in the past few months, with the United States halting F-35 material deliveries to Turkey, where an engine overhaul facility had been planned.

The administration has also threatened to impose sanctions on Ankara if it goes through with the Moscow deal. Sanctions from Congress as part of the Countering America’s Adversaries Through Sanctions Act — a penalty on U.S. partners that buy Russian military equipment — could go into effect in the event of the S-400 purchase.

But Turkey has remained defiant, with the government announcing this week that the nation sent personnel to Russia for training on the S-400.

Administration officials are still hoping that it can sidestep such retaliation if Turkey agrees to buy the U.S.-developed Patriot air and missile defense system, which is made by Raytheon.

The NATO ally has not taken the U.S. up on the offer, as Washington will not hand over the system’s sensitive missile technology.

Andrew Winternitz, the acting deputy assistant secretary of Defense for Europe and NATO, would not say on Friday whether the United States has offered such a concession.

“We’ve discussed with them; we’ve made an offer on what we can do. I’m not going to get into the specifics of the offer, but obviously we will always protect our technology as best we can,” he said, speaking alongside Lord.

In the meantime, the Pentagon is preparing to rework the F-35 supply chain to cut out Turkey. With nearly 1,000 F-35 parts supplied by Turkey — more than 400 of which are sole-sourced — both Lockheed and Pratt & Whitney, the maker of the F-35 engine, would have to modify supply chains and production schedules.

That could have implications for how quickly aircraft could be made. F-35 program executive Vice Adm. Mat Winter said in April that 50 to 75 aircraft could be delayed more than two years if Turkey is pulled from the program.

“That’s what we are particularly focused on and we are working with Lockheed Martin on the aircraft side, with Pratt & Whitney on the engine side to find alternate sources,” Lord said.

She added that disruptions would happen only if the Pentagon ends supply chain agreements with Turkey after the July 31 deadline.

Both Shanahan and Lord stressed that Turkey still has the option to change course.

In that case, Lord said, the steps to pull Turkish pilots from F-35 training will be reversed.

“None of the steps we are taking are irreversible,” Lord said. “If Turkey chooses to forgo delivery of the S-400, we look forward to restoring normal program activity.”

Democratic Sens. Cory BookerCory Anthony BookerHigh-profile data breaches underline cyber threats to health care industry Poll: Biden holds 11-point lead among 2020 Democrats Poll: More Americans say abortion stance would stop them from voting for candidates MORE (N.J.) and Bob MenendezRobert (Bob) MenendezDemocrats ask Fed to probe Trump’s Deutsche Bank ties Ending the Cyprus arms embargo will increase tensions in the Eastern Mediterranean We can accelerate a cure for Alzheimer’s MORE (N.J.) are demanding answers from the third-party billing collection group at the center of a data breach that exposed information on almost 20 million patients.

The data breach involved an unauthorized user gaining access to the system of the American Medical Collection Agency (AMCA), the billing collection company used by Quest Diagnostics and LabCorp.

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Quest announced earlier this week that the breach led to the exposure of 11.9 million patients’ data, and LabCorp said 7.7 million of its patients had their information compromised. The exposed information included Social Security numbers and financial and medical data.

In a Friday letter to AMCA President Russell Fuchs, the two senators criticized the company’s approach to data security, and asked for details about how the breach occurred and what steps the AMCA will take to prevent additional breaches.

“We must ensure that entities with access to patients’ personal, medical, and financial information understand their heightened duty to protect both the patient and their sensitive information, and that your company is taking both immediate and long-term steps to mitigate any harm,” the senators wrote. 

The letter came a day after a third company, Opko Health, revealed that the AMCA data breach exposed the personal information of more than 400,000 of its patients.

In a filing to the Securities and Exchange Commission, Opko Health said the breach exposed patient names, dates of birth, phone numbers and account balance information. 

AMCA told Opko that it is sending notices to 6,600 Opko patients whose credit card or bank account information was stored in its system.

Opko, like Quest and LabCorp, said it has stopped sending billing requests to AMCA.

Friday’s letter to the AMCA follows similar inquiries from Booker and Menendez to Quest and LabCorp. Sen. Mark WarnerMark Robert WarnerHillicon Valley: YouTube under fire | FCC gets tough on robocalls | Maine governor signs strict privacy bill | Amazon says delivery drones coming in ‘months’ Hillicon Valley: YouTube under fire | FCC gets tough on robocalls | Maine governor signs strict privacy bill | Amazon says delivery drones coming in ‘months’ High-profile data breaches underline cyber threats to health care industry MORE (D-Va.) also sent a letter to Quest this week seeking more information about the breach.

Neither Quest nor LabCorp responded to requests for comment.

Booker and Menendez gave AMCA, Quest and LabCorp until June 14 to respond, while Warner asked Quest to respond “in the next two weeks.”

A spokesperson for Menendez told The Hill on Thursday that the senator is considering changes to an existing bill on consumer data privacy and security to reflect challenges posed by attacks on the health care industry.

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White House officials blocked a State Department intelligence agency from submitting written testimony warning Congress that human-caused climate change could be “possibly catastrophic,” The Washington Post reported Friday.

The State Department’s Bureau of Intelligence and Research prepared testimony for the House Intelligence Committee and declined to take out the document’s mentions of scientific data on climate change.

Rod Schoonover, who works in the Office of the Geographer and Global Issues, was prepared to present his testimony in person during a Wednesday hearing, the newspaper reported.

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Officials from the White House’s Office of Legislative Affairs, Office of Management and Budget, and National Security Council all raised objections to his remarks, the Post reported.

They wished to cut several pages because the descriptions on climate science did not match the Trump administration’s official stance, according to senior administration officials who spoke with the newspaper on the condition of anonymity.

Schoonover, a former professor of chemistry and biochemistry at California Polytechnic State University, was given permission to appear before the House panel but was not allowed to submit his office’s statement for the record. He ultimately did not submit his testimony to the committee, an aide said.

White House officials reportedly objected to the document’s scientific citations, which refer to work conducted by federal agencies including NASA and the National Oceanic and Atmospheric Administration.

The Hill has reached out to the White House for comment.

One Trump official said it did not “jibe” with the Trump White House’s goals on climate change, a source told the Post.

The president has long cast doubt on the existence and effects of climate change, previously suggesting that climate change was a hoax invented by the Chinese.

He pulled the U.S. out of the international Paris climate accord in 2017 and downplayed a U.S. government report on the environment.

Just this week, Trump said he dismissed Prince Charles’s concerns about the negative impact on climate change and insisted that weather “changes both ways.”

“Don’t forget: It used to be called ‘global warming.’ That wasn’t working. Then it was called ‘climate change.’ Now it’s actually called ‘extreme weather’ because with extreme weather you can’t miss,” Trump told British commentator Piers Morgan.

The Bureau of Intelligence and Research’s 12-page prepared testimony, reviewed by The Washington Post, detailed how rising greenhouse gas emissions raise global temperatures and acidify oceans.

“Climate-linked events are disruptive to humans and societies when they harm people directly or substantially weaken the social, political, economic, environmental, or infrastructure systems that support people,” the statement reads, noting that while some populations may benefit from climate change. “The balance of documented evidence to date suggests that net negative effects will overwhelm the positive benefits from climate change for most of the world, however.”

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