Happy Thursday and welcome back to On The Money, where we’re wondering what the federal government will do with its new piece of prime real estate. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.
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BREAKING… Trump hits Mexico with new tariffs:
President TrumpDonald John TrumpTrump: ‘I was not informed about’ reported request to move USS John McCain Meghan McCain: Trump is a ‘child’ who will always be ‘deeply threatened’ by my dad Trump accuses Democrats of crime amid rising calls for impeachment MORE announced late Thursday that he would implement a 5 percent tariff on imports from Mexico starting June 10, “until such time as illegal migrants coming through Mexico, and into our Country, STOP.”
“On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP. The Tariff will gradually increase until the Illegal Immigration problem is remedied,..” Trump tweeted.
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The announcement follows a day of speculation after Trump said Thursday morning he would make his “biggest statement yet” on the border.
Click here for more on this breaking story.
THE BIG DEAL–White House starts clock on approval for new NAFTA: The White House on Thursday formally notified Congress that it is starting the approval process for President Trump’s revision of the North American Free Trade Agreement (NAFTA), triggering a showdown with congressional Democrats over Trump’s signature trade agreement.
The White House sent a draft statement of administrative action to lawmakers, a necessary step for the new NAFTA to be considered on a fast-track basis.
Why it’s important: The decision is designed to put pressure on House Democrats, who have objections to the revised trade pact and have reportedly warned the White House not to begin the formal process of submitting it to Congress. The Hill’s Jordan Fabian tells us more here.
How it works:
- The formal notice would kick off a minimum 30-day period before the implementing the legislation would be sent to Congress, though it is possible the White House could further delay introducing the legislation to provide more time for negotiations.
- Once the bill is introduced, the House would have 60 days to vote whether to send it to the Senate. Congress could not change the agreement or filibuster it under fast-track.
Pressure on Pelosi: The move inflamed tensions with Democrats, who wanted stronger enforcement mechanisms and higher standards for labor and environmental protection.
Speaker Nancy PelosiNancy PelosiOvernight Health Care: Missouri governor steps up threats to Planned Parenthood | Louisiana passes ‘heartbeat’ abortion ban | Trump official who oversaw refugee children to leave post | Durbin urges FDA crackdown on e-cigs Hillicon Valley: Pelosi blasts Facebook for not taking down doctored video | Democrats push election security after Mueller warning | Critics dismiss FCC report on broadband access | Uber to ban passengers with low ratings On The Money: US banks see profits rise | Pelosi ‘optimistic’ on infrastructure deal with Trump | Former Black Caucus staffers flex clout on K Street MORE (D-Calif.) had warned U.S. Trade Representative Robert LighthizerRobert (Bob) Emmet LighthizerChinese, US negotiators fine-tuning details of trade agreement: report The Trump economy keeps roaring ahead Trump says no discussion of extending deadline in Chinese trade talks MORE not to send the draft statement in order to buy more time for negotiations.
“The Trump Administration’s decision to send Congress a draft statement of administrative action before we have finished working with … Lighthizer to ensure the USMCA benefits American workers and farmers is not a positive step,” Pelosi said Thursday.
“It indicates a lack of knowledge on the part of the Administration on the policy and process to pass a trade agreement.”
LEADING THE DAY:
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Third House Republican blocks disaster aid bill: A conservative House Republican prevented the passage of a disaster aid bill on Thursday, meaning lawmakers won’t be able to send the measure to President Trump until the chamber reconvenes next week.
Rep. John RoseJohn Williams RoseHouse passes bill expressing support for NATO Massachusetts is leading the way on gun safety, but we can’t do it alone MORE (R-Tenn.) objected to the third attempt by Democrats in the last week to clear a $19.1 billion package providing funds for disaster-stricken areas by unanimous consent.
House members left Washington last Thursday for the Memorial Day recess and won’t be back until Monday. Democrats tried to clear the bill during pro forma sessions with few lawmakers present last Friday and on Tuesday but were met with objections from conservative Republicans who demanded a roll call vote.
“Our nation is $22 trillion in debt, trying to pass nearly $20 billion in new spending while the majority of Congress is not even in Washington,” Rose said, calling the attempt to pass the disaster aid package by unanimous consent “another act of irresponsible big government.”
The disaster aid measure, which is supported by Republican leadership, is expected to pass once Democrats put it to a roll call vote next week.
While Rose blocked the disaster aid bill, the House did pass by unanimous consent a two-week extension of the National Flood Insurance Program, which was set to expire Friday at midnight.
Democratic senators rip Trump administration’s trade aid to foreign firms: A group of Senate Democrats is pushing the Agriculture Department (USDA) to halt trade-related aid to foreign-owned corporations as the Trump administration faces backlash for more than $60 million in payments to a Brazilian meatpacking firm.
In a Wednesday letter to Agriculture Secretary Sonny PerdueGeorge (Sonny) Ervin PerdueBrazilian firm draws scrutiny on Trump farm aid On The Money: Senate passes disaster aid bill after deal with Trump | Trump to offer B aid package for farmers | House votes to boost retirement savings | Study says new tariffs to double costs for consumers Trump administration announces B aid package for farmers hurt by trade war with China MORE released publicly on Thursday, nine Democratic senators criticized the USDA for purchasing pork from JBS USA, an American subsidiary of Brazilian corporation JBS SA.
“It is unacceptable that American taxpayers have been subsidizing our competitors through trade assistance,” wrote the senators, including Senate Minority Leader Charles SchumerCharles (Chuck) Ellis SchumerDemocratic strategist says McConnell’s comments on Supreme Court vacancy are ‘a blessing’ Democrats blast McConnell for saying Republicans would fill a 2020 Supreme Court vacancy McConnell says Republicans would fill 2020 Supreme Court vacancy MORE (D-N.Y.) and two of the Democratic Party’s 2020 presidential candidates, Sens. Kirsten GillibrandKirsten Elizabeth GillibrandBiden campaign: Impeachment ‘may be unavoidable’ now The narratives of the Democratic presidential candidates MSNBC’s Chris Matthews: ‘Now or never’ for Pelosi to pursue impeachment MORE (N.Y.) and Amy KlobucharAmy Jean KlobucharThe narratives of the Democratic presidential candidates The Hill’s 12:30 Report: Mueller breaks silence in surprise statement The Memo: Huge Democratic field boosts Biden MORE (Minn.).
Democratic Sens. Debbie StabenowDeborah (Debbie) Ann StabenowTrump campaign eyeing effort to boost support from African Americans, Hispanics, suburban women: report Lawmakers, Trump agencies set for clash over chemicals in water Brazilian firm draws scrutiny on Trump farm aid MORE (Mich.), Sherrod BrownSherrod Campbell BrownThe Hill’s 12:30 Report: Justices sidestep major abortion decision despite pressure On The Money: Judge upholds House subpoena for Trump financial records | Trump vows to appeal ruling by ‘Obama-appointed judge’ | Canada, Mexico lift retaliatory tariffs on US | IRS audit rate falls Lawmakers grapple with the future of America’s workforce MORE (Ohio), Patrick LeahyPatrick Joseph LeahySenate passes disaster aid bill after deal with Trump GOP senators work to get Trump on board with new disaster aid package Chances for disaster aid deal slip amid immigration fight MORE (Vt.), Richard Blumenthal (Conn.), Patty MurrayPatricia (Patty) Lynn MurrayOvernight Health Care — Presented by PCMA — Senators unveil sweeping bipartisan health care package | House lawmakers float Medicare pricing reforms | Dems offer bill to guarantee abortion access Bipartisan senators reveal sweeping health care package Senate chairman says bipartisan health care package coming Thursday MORE (Wash.), and Tammy BaldwinTammy Suzanne BaldwinBrazilian firm draws scrutiny on Trump farm aid Warren vows to fight ‘tooth and nail’ for LGBTQ protections as president This week: House to vote on bill to ban LGBTQ discrimination MORE (Wis.) also signed the letter.
“We ask that you ensure these commodity purchases are carried out in a manner that most benefits the American farmer’s bottom line–not the business interests of foreign corporations.”
The background: Trump rolled out $12 billion in direct aid and purchases for farmers and ranchers targeted by tariffs and said last week he would release another $16 billion in assistance.
JBS USA, the second-largest meatpacker in the U.S., has received $64 million in pork purchases from the first tranche of aid, which the company says will go to American hog-raisers that sell to their production plants.
- Democrats have spoken out against the Trump administration sending any federal aid to a company owned by a foreign corporation.
- But GOP lawmakers have been mum about JBS USA and Joesely and Wesley Batista, the Brazilian brothers who own its parent corporation, JBS SA.
- The Batistas have admitted to bribing thousands of Brazilian officials, have spent time in and out of jail in Brazil, and are facing accusations of insider trading and lying to prosecutors. The Justice Department is also investigating the Batistas for violating the Foreign Corrupt Practices Act, according to court records obtained by The Hill.
GOOD TO KNOW
- The top Democrat on the Senate Finance Committee on Thursday threatened to block nominees to the Treasury Department until the Trump administration answers questions about the handling of a Democratic request for the president’s tax returns.
- The Bureau of Economic Analysis on Thursday revised first-quarter gross domestic product (GDP) growth down to 3.1 percent from the advance estimate of 3.2 percent.
- A federal judge on Thursday rejected the Trump administration’s request to pause an order blocking the White House from using some diverted military funds to start building a wall at the southern border.
- Tariffs are taking a toll on Pacific Northwest grain exports, according to The Columbian.
- JPMorgan Chase will pay $5 million to resolve allegations its parental leave policy discriminated against men, according to HuffPost.
ODDS AND ENDS
- National security adviser John BoltonJohn Robert BoltonOvernight Defense: Pentagon intel chief believes Russia cheating on nuke treaty | Shanahan breaks with Trump over North Korean missile tests | Top general explains Iranian threats Top general: Recent Iran threats were different because they were ‘more of a campaign’ Shanahan breaks with Trump on North Korea missile tests MORE said Thursday that British officials may still be undecided on whether to move forward with giving Chinese telecom giant Huawei access to parts of the country’s 5G network.
- Health care costs are the top financial issue facing most American families, according to a new Gallup poll released Thursday.