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Trump Orders Stimulus Package Negotiations to Stop Until After Election

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  • In a series of tweets Tuesday, President Trump said he is halting all negotiations on the coronavirus stimulus package until after the election, adding, “immediately after I win, we will pass a major Stimulus Bill.”
  • He also said he instructed Senate Majority Leader Mitch McConnell to focus on approving his Supreme Court nominee, Amy Coney Barrett.
  • The move prompted outrage from many Democrats who argued that Trump was acting in his own self-interest, not America’s, by holding the stimulus package hostage and bribing people to vote for him. 
  • Some Republicans also condemned the move, but others defended it, saying Democrats had only provided unworkable proposals and refused to negotiate.
  • Hours later, Trump appeared to backtrack and urged Congress to immediately approve another round of stimulus checks as well as billions of dollars for both airline payroll support and the Paycheck Protection Program for small businesses.

Trump Ends Stimulus Talks

President Donald Trump announced Tuesday that he was ending all negotiations on another coronavirus relief stimulus package until after the election. 

Trump declared the decision in a series of tweets where he accused House Speaker Nancy Pelosi (D-Ca.) of “not negotiating in good faith” and said he was rejecting her requests. 

“I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business,” he wrote.

The president went on to say that he asked Senate Majority Leader Mitch McConnell instead to “focus full time on approving my outstanding nominee to the United States Supreme Court, Amy Coney Barrett.”

“Our Economy is doing very well,” he added. “The Stock Market is at record levels, JOBS and unemployment also coming back in record numbers. We are leading the World in Economic Recovery, and THE BEST IS YET TO COME!”

Backlash 

Following that announcement, many people took to Twitter to condemn the president, arguing he was holding the stimulus package hostage and that he was essentially bribing Americans to vote for him.

Many politicians also echoed the claim that Trump was simply doing this to benefit himself, including Pelosi, who has been one of the main politicians leading the stimulus negotiations.

“Today, once again, President Trump showed his true colors: putting himself first at the expense of the country, with the full complicity of the GOP Members of Congress,” she said in a statement. “He refuses to put money in workers’ pockets, unless his name is printed on the check.”

Democratic nominee Joe Biden also hit on similar points in a statement on his campaign page.

“Make no mistake: if you are out of work, if your business is closed, if your child’s school is shut down, if you are seeing layoffs in your community, Donald Trump decided today that none of that — none of it — matters to him,” the former vice president said before going on to condemn Trump for ending the negotiations so the Senate could focus on jamming through his Supreme Court nominee. 

The president telling the Senate to focus on the controversial near-election nomination rather than providing Americans with much-needed assistance also sparked anger among many.

“In the middle of the worst pandemic in a century, Trump won’t help people get the relief they need – but he will ram through an illegitimate Supreme Court nominee to rip away Americans’ health care,” Sen. Elizabeth Warren (D-Ma.) tweeted. “So much for the art of the deal. This is despicable.”

Questionable Strategy and Republican Response

Politics divisions aside, many people also wondered what strategic purpose Trump’s announcement served, and why the president would see any benefit in refusing to give American’s economic support less than a month before the election. 

“Wait, so Trump not only rejects stimulus funds that would probably have helped his re-election chances, but *also* does so in a way to make sure that he personally will take blame for it?” pollster and FiveThirtyEight founder Nate Silver said in a tweet.

“The timing of Trump’s sudden move perplexed Republicans since there was little downside politically to allowing the talks to continue to play out,” CNN senior congressional correspondent Manu Raju tweeted. “Now, they fear, that Trump’s decision will make it easier for Democrats to pit the blame squarely on the WH.”

To that point, a small handful of Republicans have spoken out against Trump for ending negotiations. In a statement, Sen. Susan Collins (R-Me.) called the move “a huge mistake.” Rep. John Katko (R-Ny.) also explicitly tweeted that he disagreed with the president.

“With lives at stake, we cannot afford to stop negotiations on a relief package,” he continued. “The Problem Solvers Caucus has a proposal that both sides agreed on and can bring negotiators back to the table. I strongly urge the President to rethink this move.” 

Sen. Lindsey Graham (R-Sc.), a staunch ally of the president, also chimed in. While he did not directly criticize Trump, he did reiterate Katko’s remarks encouraging his Republican colleagues and the president to look at that same bipartisan package.

“Time to come together to help America deal with COVID as we move toward a vaccine,” he added.

Of course, on the other side, there were also plenty of Republicans who defended the move, including key leaders, like McConnell, who said he agreed with Trump’s decision when asked by reporters Tuesday.

“I think his view was that they were not going to produce a result and we needed to concentrate on what’s achievable,” he added.

Other Republicans also echoed Trump’s remarks, arguing that Pelosi’s deal was unworkable.

“Just look at Pelosi’s last offer to see how unserious she is,” House Minority Whip Steve Scalise said in a tweet, calling the proposal “a leftist wish list.”

Trump Reverses Course

However, following the backlash — as well as a significant stock market dip — Trump appeared to reverse course. Just hours after saying he was ending all stimulus talks, he called on Congress to pass key elements of the package.

“The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Business,” he tweeted. “Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign now!” 

“If I am sent a Stand Alone Bill for Stimulus Checks ($1,200), they will go out to our great people IMMEDIATELY,” he said in another tweet shortly after. “I am ready to sign right now. Are you listening, Nancy?”

Those late-night proclamations confused many. In an attempt to clear up the discourse, Wednesday morning, Trump’s Chief of Staff Mark Meadows went on Fox News. There, he explained that the negotiations on a stimulus package were indeed dead but also added that he and Treasury Secretary Steve Mnuchin were in talks about smaller bills.

“The secretary and I have been talking about what we could do with stand-alone bills to help airlines, small businesses and the American people, with stimulus checks,” he said. “So, hopefully, we can convince Speaker Pelosi to do something on a stand-alone basis.”

However, while speaking to reporters, a spokesperson for Pelosi said that Mnuchin asked about a standalone airline bill in a call with the Speaker this morning. In that call, Pelosi reminded the secretary that Democrats had tried to push through an airline payroll bill on the House floor via unanimous consent last week, but Republicans blocked it.

As for the other measures Trump mentioned in his tweets, while Pelosi and Democrats have supported them, it seems unlikely that they will agree to this. In general, they have rejected piecemeal stimulus legislation in pieces because they believe smaller bills will not do enough to help the pandemic economy. 

Economic Concerns

Regardless of the uncertain path forward, Trump’s push to pass certain parts of the package did seem to revive the stock market, which quickly rebounded Wednesday morning. However, the stock market’s optimism is not something that is shared by everyone.

In fact, just hours before Trump tweeted that he was ending negotiations and asserted that the economy was doing well, Federal Reserve Chairman Jerome Powell painted a grim picture of where the economy is headed in incredibly unusual remarks

In his comments, Powell urged Congress and the White House to approve more stimulus packages and warned hem that failure to do so could result in dire consequences.

“Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses,” he said. “Over time, household insolvencies and business bankruptcies would rise, harming the productive capacity of the economy and holding back wage growth. By contrast, the risks of overdoing it seem, for now, to be smaller.”

Despite that dire warning, Trump still claimed that the stimulus package was not needed because the economy was doing well, and the stock market and jobs were coming back at record levels.

But many experts — including some of Trump’s own advisors — have said the economy is not doing well and unless more money is injected into it, the economy is at risk of stalling or even backsliding.

Even beyond that, it is simply false that the stock market — which does not reflect the health of the economy — is at record levels. Similarly, regarding Trump’s job claims, while unemployment has gone down since its peak in April, it is still at 7.9%, and the country has recovered barely half of the jobs lost in March and April.

At the same time, many are worried that the job losses the country has seen are permanent and that given the predictions from experts about coronavirus spikes this fall and winter, Americans can expect more closures and slowdowns.

With the election edging nearer and nearer, Trump and his allies have firmly centered the economy as a key issue, now more than ever. The question now is will it come back to bite him?

According to a New York Times-Siena College poll from last month, 72% of voters supported a stimulus. That includes a majority of Republicans, but as for how Americans struggling in the pandemic economy will respond on Election Day, that is yet to be seen.

See what others are saying: (The New York Times) (Politico) (The Washington Post)

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Jan. 6 Rally Organizers Say They Met With Members of Congress and White House Officials Ahead of Insurrection

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Two sources told Rolling Stone that they participated in “dozens” of meetings with “multiple members of Congress” and top White House aides to plan the rallies that proceeded the Jan. 6 insurrection.


Rolling Stone Report

Members of Congress and White House Staffers under former President Donald Trump allegedly helped plan the Jan. 6 protests that took place outside the U.S. Capitol ahead of the insurrection, according to two sources who spoke to Rolling Stone.

According to a report the outlet published Sunday, the two people, identified only as “a rally organizer” and “a planner,” have both “begun communicating with congressional investigators.”

The two told Rolling Stone that they participated in “dozens” of planning briefings ahead of the protests and said that “multiple members of Congress were intimately involved in planning both Trump’s efforts to overturn his election loss and the Jan. 6 events that turned violent.”

“I remember Marjorie Taylor Greene specifically,” the person identified as a rally organizer said. “I remember talking to probably close to a dozen other members at one point or another or their staffs.”

The two also told Rolling Stone that a number of other Congress members were either personally involved in the conversations or had staffers join, including Representatives Paul Gosar (R-Az.), Lauren Boebert (R-Co.), Mo Brooks (R-Al.), Madison Cawthorn (R-N.C.), Andy Biggs (R-Az.), and Louie Gohmert (R-Tx.).

The outlet added that it “separately obtained documentary evidence that both sources were in contact with Gosar and Boebert on Jan. 6,” though it did not go into further detail. 

A spokesperson for Greene has denied involvement with planning the protests, but so far, no other members have responded to the report. 

Previous Allegations Against Congressmembers Named

This is not the first time allegations have surfaced concerning the involvement of some of the aforementioned congress members regarding rallies that took place ahead of the riot.

As Rolling Stone noted, Gosar, Greene, and Boebert were all listed as speakers at the “Wild Protest” at the Capitol on Jan. 6, which was arranged by “Stop the Steal” organizer Ali Alexander.

Additionally, Alexander said during a now-deleted live stream in January that he personally planned the rally with the help of Gosar, Biggs, and Brooks.

Biggs and Brooks previously denied any involvement in planning the event, though Brooks did speak at a pro-Trump protest on Jan. 6.

Gosar, for his part, has remained quiet for months but tagged Alexander in numerous tweets involving Stop the Steal events leading up to Jan. 6, including one post that appears to be taken at a rally at the Capitol hours before the insurrection.

Notably, the organizer and the planner also told Rolling Stone that Gosar “dangled the possibility of a ‘blanket pardon’ in an unrelated ongoing investigation to encourage them to plan the protests.”

Alleged White House Involvement

Beyond members of Congress, the outlet reported that the sources “also claim they interacted with members of Trump’s team, including former White House Chief of Staff Mark Meadows, who they describe as having had an opportunity to prevent the violence.”

Both reportedly described Meadows “as someone who played a major role in the conversations surrounding the protests.”

The two additionally said Katrina Pierson, who worked for the Trump campaign in both 2016 and 2020, was a key liaison between the organizers of the demonstrations and the White House.

“Katrina was like our go-to girl,” the organizer told the outlet. “She was like our primary advocate.”

According to Rolling Stone, the sources have so far only had informal talks with the House committee investigating the insurrection but are expecting to testify publicly. Both reportedly said they would share “new details about the members’ specific roles” in planning the rallies with congressional investigators.

See what others are saying: (Rolling Stone) (Business Insider) (Forbes)

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Jan. 6 Committee Prepares Criminal Charges Against Steve Bannon for Ignoring Subpoena

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The move comes after former President Trump told several of his previous aides not to cooperate with the committee’s investigation into the insurrection.


Bannon Refuses to Comply With Subpoena

The House committee investigating the Jan. 6 insurrection announced Thursday that it is seeking to hold former White House advisor Steve Bannon in criminal contempt for refusing to comply with a subpoena.

The decision marks a significant escalation in the panel’s efforts to force officials under former President Donald Trump’s administration to comply with its probe amid Trump’s growing efforts to obstruct the inquiry.

In recent weeks, the former president has launched a number of attempts to block the panel from getting key documents, testimonies, and other evidence requested by the committee that he claims are protected by executive privilege.

Notably, some of those assertions have been shut down. On Friday, President Joe Biden rejected Trump’s effort to withhold documents relating to the insurrection.

Still, Trump has also directed former officials in his administration not to comply with subpoenas or cooperate with the committee. 

That demand came after the panel issued subpoenas ordering depositions from Bannon and three other former officials: Chief of Staff Mark Meadows, Deputy Chief of Staff Dan Scavino, and Pentagon Chief of Staff Kash Patel.

After Trump issued his demand, Bannon’s lawyer announced that he would not obey the subpoena until the panel reached an agreement with Trump or a court ruled on the executive privilege matter.

Many legal experts have questioned whether Bannon, who left the White House in 2017, can claim executive privilege for something that happened when he was not working for the executive.

Panel Intensifies Compliance Efforts

The Thursday decision from the committee is significant because it will likely set up a legal battle and test how much authority the committee can and will exercise in requiring compliance.

It also sets an important precedent for those who have been subpoenaed. While Bannon is the first former official to openly defy the committee, there have been reports that others plan to do the same. 

The panel previously said Patel and Meadows were “engaging” with investigators, but on Thursday, several outlets reported that the two — who were supposed to appear before the body on Thursday and Friday respectively —  are now expected to be given an extension or continuance.

Sources told reporters that Scavino, who was also asked to testify Friday, has had his deposition postponed because service of his subpoena was delayed.

As far as what happens next for Bannon, the committee will vote to adopt the contempt report next week. Once that is complete, the matter will go before the House for a full vote.  

Assuming the Democratic-held House approves the contempt charge, it will then get referred to the U.S. Attorney for the District of Columbia to bring the matter before a grand jury.

See what others are saying: (CNN) (The Washington Post) (Bloomberg)

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Senate Votes To Extend Debt Ceiling Until December

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The move adds another deadline to Dec. 3, which is also when the federal government is set to shut down unless Congress approves new spending.


Debt Ceiling Raised Temporarily

The Senate voted on Thursday to extend the debt ceiling until December, temporarily averting a fiscal catastrophe.

The move, which followed weeks of stalemate due to Republican objections, came after Senate Minority Leader Mitch McConnell (R-Ky.) partially backed down from his blockade and offered a short-term proposal.

After much whipping of votes, 11 Republicans joined Democrats to break the legislative filibuster and move to final approval of the measure. The bill ultimately passed in a vote of 50-48 without any Republican support.

The legislation will now head to the House, where Majority Leader Steny Hoyer (D-Md.) said members would be called back from their current recess for a vote on Tuesday. 

The White House said President Joe Biden would sign the measure, but urged Congress to pass a longer extension.

“We cannot allow partisan politics to hold our economy hostage, and we can’t allow the routine process of paying our bills to turn into a confidence-shaking political showdown every two years or every two months,’’ White House Press Secretary Jen Psaki said in a statement.

Under the current bill, the nation’s borrowing limit will be increased by $480 billion, which the Treasury Department said will cover federal borrowing until around Dec. 3.

The agency had previously warned that it would run out of money by Oct. 18 if Congress failed to act. Such a move would have a chilling impact on the economy, forcing the U.S. to default on its debts and potentially plunging the country into a recession. 

Major Hurdles Remain

While the legislation extending the ceiling will certainly offer temporary relief, it sets up another perilous deadline for the first Friday in December, when government funding is also set to expire if Congress does not approve another spending bill.

Regardless of the new deadline, many of the same hurdles lawmakers faced the first time around remain. 

Democrats are still struggling to hammer out the final details of Biden’s $3.5 trillion spending agenda, which Republicans have strongly opposed.

Notably, Democratic leaders previously said they could pass the bill through budget reconciliation, which would allow them to approve the measure with 50 votes and no Republican support.

Such a move would require all 50 Senators, but intraparty disputes remain over objections brought by Joe Manchin (D-W.V.) and Kyrsten Sinema (D-Az.), who have been stalling the process for months.

Although disagreements over reconciliation are ongoing among Democrats, McConnell has insisted the party use the obscure procedural process to raise the debt limit. Democrats, however, have balked at the idea, arguing that tying the debt ceiling to reconciliation would set a dangerous precedent.

Despite Republican efforts to connect the limit to Biden’s economic agenda, raising the ceiling is not the same as adopting new spending. Rather, the limit is increased to pay off spending that has already been authorized by previous sessions of Congress and past administrations.

In fact, much of the current debt stems from policies passed by Republicans during the Trump administration, including the 2017 tax overhaul. 

As a result, while Democrats have signaled they may make concessions to Manchin and Sinema, they strongly believe that Republicans must join them to increase the debt ceiling to fund projects their party supported. 

It is currently unclear when or how the ongoing stalemate will be resolved, or how either party will overcome their fervent objections.

See what others are saying: (The New York Times) (NPR) (The Washington Post)

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