Tag Archives: public finance

Mustang Mach-E: Ford drops the price of its Tesla competitor



CNN
 — 

Ford is boosting production of its popular Mustang Mach-E electric SUV and dropping its sticker price weeks after Tesla dropped prices of its vehicles. The move represents a substantial roll-back of price hikes Ford announced last summer on the 2023 models – but buyers may still be paying somewhat more than before the increases.

The Mustang Mach-E, a midsize electric family SUV, was the first serious electric effort for the Dearborn, Michigan-based automaker. Priced and aimed squarely at the Tesla Model Y, which has its own starting price of $53,490, the Mach-E is Ford’s bet to get new car buyers to dip their toes into the battery-powered future. it has since been joined in the electric Ford lineup by the workhorse Ford F-150 Lightning. But the company still considers the Mach-E a crucial step for the company’s electric-powered growth.

Late last year, Darren Palmer, Ford’s vice president of electric vehicle programs, told CNN Business that the Mach-E was completely sold out and the automaker was holding off on launching it in more global markets in order to catch up with US demand.

“We could sell it out at least two or three times over,” he said a the time.

The price cuts Ford announced Monday were biggest on the most expensive versions of the SUV, just as the increases had been biggest on those models. The base sticker of the Mustang Mach-E GT Extended Range, a high-performance version of the SUV, dropped to about $64,000 from $69,900 before, a decrease of $5,900. But that model had been about $62,000 before price increases last August.

When it announced those price bumps, Ford also said it was putting more standard features into the vehicles, including advanced driver assistance features.

The price of the least expensive Mach-E, the rear-wheel-drive standard range model, was cut $900, going from about $46,900 down to $46,000. The price of the extended range battery pack option, by itself, dropped from $8,600 down $7,000.

Tesla announced price cuts of as much as 20% on its electric vehicles earlier this month, after raising prices in 2022.

When Ford announced the price increases last summer, citing supply chain issues, the automakers indicated it would continue monitoring market conditions throughout the upcoming model year.

Ford announced last summer that it was increasing production of the Mach-E as it added capacity for more battery production. The automaker also announced in late August that it was reopening order banks for the Mach-E which had been closed as the company worked to meet existing orders.

Customers who complete the transaction for their Mach-E after today’s announcement will pay the new lower price, Ford said. Ford will reach out directly to Mach-E customers with a sale date after January 1, 2023 who already have their vehicles, the automaker said.

At least some versions of both models are currently eligible for federal electric vehicle tax credits, according to the Internal Revenue Service, but both are treated as cars, not SUVs, under the tax rules, unless equipped with a third row of seats.

That means that tax credits are available for the two-row only Mach-E and two-row Model Y only if the sticker price is below $55,000. For versions of the Model Y with a third row of seats, a $4,000 option, buyers may get tax credits with a sticker price up to $80,000. For the Mustang Mach-E, a third row of seats isn’t offered.

The final amount of the tax credit may depend on when the vehicle is actually delivered to the customer and, also, whether the customers themselves meet annual income requirements.

Read original article here

Wagner group: US introduces new sanctions targeting Russian mercenary group



CNN
 — 

The US Treasury Department on Thursday designated the Wagner Group, a Russian private mercenary organization heavily involved in the war in Ukraine, as a significant transnational criminal organization, and imposed a slew of sanctions on a transnational network that supports it.

The US Department of State concurrently announced a number of sanctions meant to “target a range of Wagner’s key infrastructure – including an aviation firm used by Wagner, a Wagner propaganda organization, and Wagner front companies,” according to US Secretary of State Antony Blinken.

“As Russia’s military has struggled on the battlefield, Putin has resorted to relying on the Wagner Group to continue his war of choice. The Wagner Group has also meddled and destabilized countries in Africa, committing widespread human rights abuses and extorting natural resources from their people,” the Treasury Department said in a press release.

In addition to the measures targeting the Wagner Group – which were previewed by the White House last week – both agencies announced sanctions against a wide group of individuals and companies tied to Russia’s war in Ukraine. They are the latest US punitive measures against the Kremlin and its proxies as Russian President Vladimir Putin’s war approaches its second year with no signs of abating.

“This action supports our goal to degrade Moscow’s capacity to wage war against Ukraine, to promote accountability for those responsible for Russia’s war of aggression and associated abuses, and to place further pressure on Russia’s defense sector,” Blinken said in a statement.

The Treasury Department announced sanctions on a number of individuals and companies tied to Moscow’s defense industrial complex, as well as Putin allies and their family members, and two people involved with Russia’s attempts to annex parts of Ukraine.

The State Department also announced sanctions on “three individuals for their roles as heads of the Russian Federal Penitentiary Service, which has been reported to facilitate the recruitment of Russian prisoners into the Wagner Group,” a Deputy Prime Minister who also serves as the Minister of Industry and Trade,” “the Chairman of the Election Commission of the Rostov Region,” a network tied to an already-sanctioned Russian oligarch, and a financier to Putin, according to Blinken.

In addition, the State Department announced it will take steps to impose visa restrictions “on 531 members of the Russian Federation military for actions that threaten or violate the sovereignty, territorial integrity, or political independence of Ukraine.”

National Security Council Coordinator for Strategic Communications John Kirby last week previewed the significant transnational criminal organization designation and forthcoming sanctions against the Wagner group, telling reporters Friday, “These actions recognize the transcontinental threat that Wagner poses, including through its ongoing pattern of serious criminal activity.”

Among the companies sanctioned by the Treasury Department for their ties to the Wagner Group and its leader, Yevgeniy Prigozhin, are Joint Stock Company Terra Tech, a “Russia-based technology firm that supplies space imagery acquired by commercially active satellites, as well as aerial images acquired by unmanned systems,” and a China-based entity “that has provided Terra Tech synthetic aperture radar satellite imagery orders over locations in Ukraine.”

“These images were gathered in order to enable Wagner combat operations in Ukraine,” the Treasury Department said.

In addition to sanctions related to the Wagner Group’s significant involvement in the war in Ukraine, the Treasury Department imposed sanctions for its illicit activities in the Central African Republic. The group was re-designated “for being responsible for or complicit in, or having engaged in, the targeting of women, children, or any civilians through the commission of acts of violence, or abduction, forced displacement, or attacks on schools, hospitals, religious sites, or locations where civilians are seeking refuge, or through conduct that would constitute a serious abuse or violation of human rights or a violation of international humanitarian law in relation to the CAR.”

Read original article here

Yellen warns of ‘global financial crisis’ if US debt limit agreement isn’t reached



CNN
 — 

Treasury Secretary Janet Yellen on Friday warned of the widespread global effects that could be felt if the federal government exhausts extraordinary measures and fails to raise the debt ceiling, telling CNN’s Christiane Amanpour about the ways everyday Americans could face stark consequences.

Yellen’s warning comes after the United States on Thursday hit its $31.4 trillion debt limit set by Congress, forcing the Treasury Department to start taking extraordinary measures to keep the government paying its bills.

While those newly deployed extraordinary measures are largely behind-the-scenes accounting maneuvers, Yellen told Amanpour that “the actual date at which we would no longer be able to use these measures is quite uncertain, but it could conceivably come as early as early June.”

Speaking exclusively to CNN from Senegal, Yellen said that after the measures are exhausted, the US could experience at a minimum downgrading of its debt as a result of Congress failing to raise the debt ceiling. The effects of the federal government failing to make payments, she argued, could be as broad as a “global financial crisis.”

“If that happened, our borrowing costs would increase and every American would see that their borrowing costs would increase as well,” Yellen said. “On top of that, a failure to make payments that are due, whether it’s the bondholders or to Social Security recipients or to our military, would undoubtedly cause a recession in the US economy and could cause a global financial crisis.”

“It would certainly undermine the role of the dollar as a reserve currency that is used in transactions all over the world. And Americans – many people would lose their jobs and certainly their borrowing costs would rise,” she continued.

Yellen wrote a letter to House Speaker Kevin McCarthy on Thursday explaining the measures being taken, escalating pressure on Capitol Hill to avoid a catastrophic default.

Hardline Republicans have demanded that lifting the borrowing cap be tied to spending reductions. The White House has countered by saying that it will not offer any concessions or negotiate on raising the debt ceiling. And so far, Yellen’s warnings have failed to spark bipartisan discussion, with both Republicans and Democrats reaffirming their rigid positions over the past week.

As part of the debt issuance suspension period using extraordinary measures, the agency intends to sell existing investments and suspend reinvestments of the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund. Also, it will suspend the reinvestment of a government securities fund of the Federal Employees Retirement System Thrift Savings Plan.

No federal retirees or employees will be affected, and the funds will be made whole once the impasse ends, Yellen said in the letter.

“I respectfully urge Congress to act promptly to protect the full faith and credit of the United States,” she wrote.

Read original article here

Debt ceiling: Here’s what you should know as threat of default looms



CNN
 — 

The clock is now ticking to prevent a financial crisis.

The US hit its debt ceiling Thursday, triggering the Treasury Department to start taking extraordinary measures to prevent a default.

While Treasury Secretary Janet Yellen doesn’t expect the US to default on its debt before early June, Congress has to get serious about negotiating a solution, which is not expected to be easy.

Here’s what the situation is all about.

Established by Congress, the debt ceiling is the maximum amount the federal government is able to borrow to finance obligations that lawmakers and presidents have already approved – since the government runs budget deficits and the revenue it collects is not sufficient. Increasing the cap does not authorize new spending commitments.

The debt ceiling, which currently stands at $31.4 trillion, was created more than a century ago and has been modified more than 100 times since World War II.

Though it was originally designed to make it easier for the federal government to borrow, the limit has become a way for Congress to restrict the growth of borrowing – turning it into a political football in recent decades.

Still, fears of a default have prompted lawmakers to pass legislation to raise or suspend the ceiling every time, most recently in December 2021.

It is unlikely that the government will exhaust its cash and the extraordinary measures before early June, though there is “considerable uncertainty” around that forecast, Yellen wrote in a letter to House Speaker Kevin McCarthy last week. It depends in part on how much 2022 tax revenue the government collects this spring.

If the government is no longer able to borrow, it would not have enough money to pay all its bills in full and on time – including interest on the national debt. So it would likely have to temporarily delay payments or default on some of its commitments, potentially affecting Social Security payments, veterans’ benefits and federal employees’ salaries, among others.

But no one knows exactly how Treasury would handle the situation since it has never happened.

A default would also wreak havoc on the US economy and the global financial markets, as well as raise borrowing costs. Even the threat of one in 2011 caused the only credit rating downgrade in the nation’s history.

These moves are mainly behind-the-scenes accounting maneuvers. Treasury secretaries are authorized by Congress to take several types of extraordinary measures to prevent a default, giving lawmakers more time to increase or suspend the limit. Secretaries in both Democratic and Republican administrations have taken such steps.

This time, Yellen anticipates selling existing investments and suspending reinvestments of the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund. Also, she is suspending the reinvestment of a government securities fund of the Federal Employees Retirement System Thrift Savings Plan.

These funds are invested in special-issue Treasury securities, which count against the debt limit. Yellen’s actions would reduce the amount of outstanding debt subject to the limit and temporarily provide the agency with additional capacity to continue financing the federal government’s operations.

No retirees will be affected, and the funds will be made whole once the impasse ends.

Recent contention in the House speaker election has raised concerns about whether McCarthy will be able to corral Republican hardliners – who see a potential default as a way to force the government to cut back spending – and negotiate a deal with Democrats, who oppose any reductions.
McCarthy said on Fox on Sunday that now is a good time to “look at the places that we can change our behavior” because “what we’re going to do is bankrupt this country.”

But the White House last week said that it would not offer any concessions or negotiate on raising the debt ceiling.

Meanwhile, House Republicans are preparing contingency plans that would tell the Treasury Department which payments to prioritize if lawmakers can’t agree to address the debt ceiling.

While the two are often confused, a government shutdown happens when Congress doesn’t pass a federal funding bill, while a debt ceiling crisis would occur if lawmakers don’t approve legislation to lift the debt limit.

Congress passed a $1.7 trillion federal spending bill last month, avoiding a government shutdown that could have caused nonessential operations to cease and could have left many federal employees without pay. The legislation will fund government operations until the end of the fiscal year on September 30.

This story and headline have been updated with additional developments.

Read original article here

Trump Org. fined $1.6 million after conviction for 17 felonies, including tax fraud


New York
CNN
 — 

The Trump Organization was fined $1.6 million – the maximum possible penalty – by a New York judge Friday for running a decade-long tax fraud scheme, a symbolic moment because it is the only judgment for a criminal conviction that has come close to former President Donald Trump.

Two Trump entities, The Trump Corp. and Trump Payroll Corp., were convicted last month of 17 felonies, including tax fraud and falsifying business records.

Under New York law, the most the companies can be fined is about $1.6 million, a penalty the Trump Organization can easily afford.

Prosecutor Joshua Steinglass asked Judge Juan Merchan to make the Trump Org. pay the maximum fine, though he admitted that it will have a “minimal impact” on a multibillion-dollar company.

“We all know that these corporations cannot go to jail as Allen Weisselberg has,” Steinglass said Friday, referring to the Trump Organization’s long-time chief financial officer who was sentenced to five months in jail earlier this week as part of a deal he reached with prosecutors. “The only way to effectively deter such conduct is to make it as expensive as possible.”

New York District Attorney Alvin Bragg, a Democrat, told CNN that the fine against the Trump Org. is important but he also wants lawmakers to raise the fines for companies that break the law.

“It’s important regardless of who the defendant is, because it’s cheating and greed and cheating the taxpayers,” Bragg said. “It obviously becomes more consequential given that it involved the former president’s corporation and CFO. It sends a message – I hope it sends a message to New Yorkers that you know we’re one system of justice and that this kind of conduct, regardless of who you are, won’t be countenanced in Manhattan.”

But, Bragg said, the fine isn’t enough of a penalty.

“It isn’t sufficient. Plain and simple,” Bragg said, saying the law should “reflect what I think many of us see, particularly those who sat through the trial and saw the 13 year you know pattern of deep greed and misconduct laid bare, we should have stiffer penalties for conduct like that.”

The Trump Org. entities have 14 days to pay the fine.

The real estate business is not at risk of being dismantled because there is no mechanism under the law to dissolve the company. No individual will go to jail based on the jury’s verdict. However, a felony conviction could impact the Trump Organization’s reputation and ability to do business or obtain loans or contracts.

Trump and his family were not charged in this case, but the former president was mentioned repeatedly during the trial by prosecutors about his connection to the un-taxed benefits doled out to certain executives, including company-funded apartments, car leases and personal expenses. One prosecutor said Trump “explicitly sanctioned” tax fraud.

One of the jurors told CNN that the jury saw a “culture of fraud,” at the Trump Organization, but referred to Trump as a nondescript “Bob Smith” at times when talking about the company owner’s awareness of the crimes in relation to the charges.

Weisselberg last year pleaded guilty to 15 felonies related to the tax fraud scheme and agreed to testify truthfully against the company at trial.

He remained on paid leave at the Trump Organization, where he was compensated a little more than $1 million a year, until Tuesday when he was sentenced. Weisselberg received a severance package that one person familiar with the deal called “generous.”

Merchan, who sentenced Weisselberg, said at the time that but for the deal he would have given Weisselberg more time in jail after listening to the evidence at trial.

Merchan said he found most “offensive” a $6,000 payroll check Weisselberg had made out to his wife, who never worked for Trump, so she could become eligible for Social Security benefits.

A Trump Org. spokesperson said that Weisselberg “is a victim,” as is the company and former president.

“New York has become the crime and murder capital of the world, yet these politically motivated prosecutors will stop at nothing to get President Trump and continue the never ending witch-hunt which began the day he announced his presidency,” the spokesperson said. “We did nothing wrong and we will appeal this verdict.”

The Manhattan district attorney’s office continues to investigate the company’s business practices.

Prosecutors are conducting a wide-ranging investigation and in recent months their focus has returned to the company’s involvement in hush-money payments made to silence adult film star Stormy Daniels from going public with an affair with Trump just before the 2016 election, people familiar with the matter said. Trump has denied the affair.

Prosecutors are also looking into potential insurance fraud after new material came to light from the New York attorney general’s civil investigation into the accuracy of the Trump Organization’s financial statements, the people said.

The biggest threat currently facing the company could be New York Attorney General Letitia James’ $250 million civil lawsuit, which has alleged Trump, his three eldest children, Weisselberg and others defrauded lenders, insurers and tax authorities by inflating the value of multiple Trump Org. properties for more than a decade.

In addition to money, James, a Democrat, is seeking to permanently bar Trump and the children named in the lawsuit from serving as a director of a business registered in New York state. She is also seeking to cancel the Trump Organization’s corporate certificate, which if granted by a judge, could effectively force the company to cease operations in New York state.

The judge overseeing the lawsuit put an independent monitor in place to review the Trump Organization’s financial statements and business decisions. He recently denied motions to dismiss the case and said he considered sanctioning Trump’s attorneys. The trial is set for October.

Trump has denied wrongdoing and said the lawsuit is politically motivated.

This story has been updated with additional details.

Read original article here

Unanswered questions about Trump’s tax returns


New York
CNN
 — 

After years of legal battles, pontificating and theorizing, former President Donald Trump’s tax returns from 2015 to 2020 are now part of the public record. Many critics and political opponents have theorized that Trump fought the public disclosure of his tax returns because they potentially provided evidence of illegal or politically damaging behavior.

It’s not immediately clear that they do either.

However, Trump’s tax returns raise numerous questions about the former president’s finances, his business activities, foreign ties and his charitable donations, among other issues.

Trump broke with decades of tradition in becoming the first elected president since Nixon to refuse to disclose his tax returns to the public When Democratic lawmakers demanded them, Trump fought for years to keep them private, taking the battle to the Supreme Court – a legal fight he ultimately lost.

He frequently claimed during his 2016 presidential candidacy that he couldn’t release his taxes because they were being audited, a claim that was debunked last week when the House Ways and Means Committee disclosed that Trump’s 2015 and 2016 taxes weren’t audited until 2019.

For now, the thousands of pages of documents offer only more questions about what Trump’s finances, and may offer potential avenues for new investigations.

Trump reported having foreign bank accounts, including a bank account in China between 2015 and 2017, his tax returns show.

The tax returns do not show what the bank account was used for or how much money passed through it or to whom. The New York Times first reported about Trump’s Chinese account in 2020, and Trump Organization lawyer Alan Garten told the Times that the account was used to pay taxes on the Trump International Hotels Management’s business push in the country.

Trump did not report the Chinese bank account in personal financial disclosures when he was president, likely because it was listed under his businesses. Yet he may have still been required to report accounts to the Financial Crimes Enforcement Network (FinCEN).

Trump’s companies and business interests span the globe. On his tax return, Trump listed business income, taxes, expenses or other notable financial items from or in Azerbaijan, Panama, Canada, India, Qatar, South Korea, the United Kingdom, China, the Dominican Republic, United Arab Emirates, the Philippines, Grenada, US territory Puerto Rico, Georgia, Israel, Brazil, St. Maarten, Mexico, Indonesia, Ireland, Turkey and St. Vincent.

But the tax returns don’t explain what business ties he had in those countries and with whom he might have been working while he was president.

Unlike previous presidents, Trump declined to divest his business interests while he was in office. Critics said his many foreign holdings compromised his ability to act independently as a politician.

During his presidency, Trump pledged he would donate the entirety of his $400,000 salary to charity each year. He frequently boasted about donating parts of his quarterly paycheck to various government agencies.

If he donated his 2020 salary, he didn’t claim it on his taxes. Among the six years of tax returns the House Ways and Means Committee released, 2020 was the sole year in which Trump listed no donations to charity.

That doesn’t mean his salary wasn’t donated, but it’s unclear if he made good on his promise in 2020.

In each year of Trump’s presidency, Trump claimed that he had loaned three of his adult children – Ivanka, Donald Jr. and Eric – undisclosed sums of money on which he collected interest.

The tax returns don’t say how much he lent them or why he gave them loans in the first place.

Between 2017 and 2020, Trump claimed he received exactly $18,000 in interest on a loan he gave his daughter Ivanka Trump and $8,715 in interest from his son Donald Trump, Jr.. In 2017 to 2019, Trump said he received exactly $24,000 from his son Eric Trump, and Eric paid him $19,605 in interest in 2020.

The bipartisan Joint Committee on Taxation said the loans and the amounts of claimed interest could indicate Trump was disguising gifts to his children. If the interest Trump claims to have charged his children was not at market rate, for example, it could be considered a gift for tax purposes, requiring him to pay a higher tax rate on the money.

Trump entered the US presidency with a vast web of business holdings, including hundreds of limited liability companies, corporations and partnerships with operations both domestically and overseas.

The massiveness and intricacy of his business operations – including companies nested within each other like Matryoshka dolls – brought a level of complexity not seen before in the US presidency and spurred concern about potential conflicts of interest, especially with foreign entities.

Friday’s public release of Trump’s 2015 to 2020 personal and business tax filings may shed some additional light as to how those operations evolved during and shortly after his time in office. But they don’t spell out where money was going and to whom.

Since 1977, the Internal Revenue Service has had a policy of auditing every president’s personal tax returns while they are in office. But the IRS didn’t do any examination of Trump’s tax returns until the Ways and Means Committee requested an audit in April of 2019.

When the committee asked Treasury Department representatives about the apparent lapse, they declined to provide information about the actual operations of the mandatory audit program, according to the committee’s report.

It remains unclear whether Trump received special treatment or, as the committee noted, the IRS was hamstrung by an acute lack of resources.

The lack of an audit looks especially suspect after representatives for Trump’s predecessor and successor said they had been subjected to annual audits by the IRS. A Biden White House spokesman told the AP that the IRS audited Biden in both 2020 and 2021. Representatives for former President Barack Obama told the New York Times that the IRS audited him each year he was in office.

Read original article here

Biden signs $1.7 trillion government spending bill into law



CNN
 — 

President Joe Biden on Thursday signed a $1.7 trillion federal spending bill that includes a number of administration priorities and officially avoids a government shutdown, ending what he called a “year of historic progress.”

“It’ll invest in medical research, safety, veteran health care, disaster recovery, (Violence Against Women Act) funding – and gets crucial assistance to Ukraine,” Biden wrote in a tweet.

He added: “Looking forward to more in 2023.”

Biden signed the bill while vacationing on St. Croix in the US Virgin Islands. The bill was flown to him for signing, the White House said.

“The White House received the bill from Congress late afternoon on Wednesday. The bill was delivered to the President for his signature by White House staff on a regularly scheduled commercial flight,” a White House official told pool reporters.

It’s at least the second time this year that an important bill has been flown to Biden for his signature. While on a trip to Asia in May, a bill authorizing about $40 billion in aid to Ukraine was carried by a staffer who was already scheduled to travel to the region. Biden signed the bill while overseas.

The spending bill represents the final opportunity for Biden and Democrats to put their imprint on government spending before Republicans assume the majority in the House next week. It caps a remarkably productive two years legislatively for Biden, including a Covid-19 relief package, infrastructure bill and a China competitiveness measure.

The legislation includes $772.5 billion for nondefense discretionary programs and $858 billion in defense funding, according to a bill summary from Democratic Sen. Patrick Leahy, chair of the Senate Committee on Appropriations. That represents an increase in spending in both areas for fiscal year 2023.

The sweeping package includes roughly $45 billion in emergency assistance to Ukraine and NATO allies, an overhaul of the electoral vote-counting law, protections for pregnant workers, an enhancement to retirement savings rules and a ban on TikTok on federal devices.

It also will provide a boost in spending for disaster aid, college access, child care, mental health and food assistance, more support for the military and veterans and additional funds for the US Capitol Police, according to Leahy’s summary and one from Sen. Richard Shelby of Alabama, the top Republican on the Senate Appropriations Committee. And the legislation contains several major Medicaid provisions, notably one that could disenroll up to 19 million people from the nation’s health insurance program for low-income Americans.

However, the bill, which runs more than 4,000 pages, left out several measures that some lawmakers had fought to include. An expansion of the child tax credit, as well as multiple other corporate and individual tax breaks, did not make it into the final bill. Neither did legislation to allow cannabis companies to bank their cash reserves – known as the Safe Banking Act – or a bill to help Afghan evacuees in the US gain lawful permanent residency. And the spending package did not include a White House request for roughly $10 billion in additional funding for Covid-19 response.

The spending bill, which will keep the government operating through September – the end of the fiscal year, is the product of lengthy negotiations between top congressional Democrats and Republicans.

Congress originally passed a continuing resolution on September 30 to temporarily fund the government in fiscal year 2023, which began October 1.

This story has been updated with additional details.

Read original article here

Senate to vote on stopgap bill to avert shutdown at end of the week



CNN
 — 

The Senate is on track to vote Thursday evening to pass a stopgap bill to avert a government shutdown at the end of this week with funding currently set to expire on Friday at midnight.

The stopgap measure will extend funding for another week – until Friday, December 23 – to give congressional negotiators time to finalize a broader, full-year government funding deal with new topline spending levels.

The House approved the measure on Wednesday. It needs to be passed by the Senate before it can go to President Joe Biden to be signed into law.

In a sign of progress, top negotiators announced Tuesday evening that an agreement had been reached for a framework that puts lawmakers on track to complete a sweeping full-year government funding package.

Senate Appropriations Committee Chairman Patrick Leahy said in a statement that he and ranking Republican member Richard Shelby and House Appropriations Committee Chairwoman Rosa DeLauro had “reached a bipartisan, bicameral framework that should allow us to finish an omnibus appropriations bill that can pass the House and Senate and be signed into law by the President.”

So far, however, negotiators have not provided many specifics about the agreement.

On Wednesday, Shelby said the top line is about $1.7 trillion, but would not elaborate. Shelby said the exact allocations to the different government agencies are still being negotiated.

The announcement that a framework deal had been reached for a broader spending bill represented a major breakthrough in negotiations, but there is still more work to be done now as lawmakers work to finalize the fine print and the specifics of what the sprawling legislation will include.

The expectation on Capitol Hill is that Congress will be able to avoid a shutdown, but congressional leaders have little room for error given the tight timeline they are facing so the pressure is on for lawmakers.

A bipartisan agreement for a full-year government funding deal has proven challenging to secure amid disagreement between the two parties over how much money should be spent on non-defense, domestic priorities.

Republicans are critical of recent domestic spending by Democrats and argue that measures Democrats have passed while they have been in control of both chambers of Congress, like a $1.9 trillion pandemic relief bill and a sweeping health care and climate bill, are wasteful and will worsen inflation.

Democrats counter by saying those measures were necessary to help the country recover from the devastating impact of the pandemic as well as to tackle other critical priorities. Democrats say that money to respond to Covid, health care and climate should not mean there should be less money next year for government operations and non-defense, domestic spending.

Read original article here

Lawmakers should prepare for one-week funding stopgap as negotiations continue, Schumer says



CNN
 — 

The House and Senate are expected to pass a short-term extension to avert a shutdown, which would give negotiators more time to try to secure a broader full-year funding deal.

Senate Majority Leader Chuck Schumer said on Monday that senators should be prepared to take “quick action” on a one-week extension to give lawmakers more time to negotiate.

Schumer said in remarks on the Senate floor that he anticipates “quick action” on a stopgap funding bill known as a continuing resolution, or CR for short, “so we can give appropriators more time to finish a full funding bill before the holidays.”

Budget negotiators must reach an agreement before their deadline or punt the decision to next year, when House Republicans take over. That could complicate the government’s ability to avert a shutdown as it would mean newly empowered House Republicans need to agree with 60 senators and Democratic President Joe Biden.

The other major legislative item lawmakers are working to wrap up before the end of the year is the National Defense Authorization Act, the massive annual must-pass defense policy bill. The NDAA is expected to get a vote in the Senate this week and be approved with bipartisan support.

The House has already approved the measure so once the Senate votes to pass it, the bill can go to President Joe Biden to be signed into law.

The approaching deadline for government funding had members of Congress and their staffers from both parties, as well as Biden administration officials, continuing to slog through negotiations over the weekend to try to get to an agreement on a spending package.

“This is the time of the year when there’s no weekends for folks who work on appropriations,” one administration official closely involved in the talks told CNN.

Over the weekend, both Democrats and Republicans were sharing with one another their “bottom lines” on various fronts, and the White House remained publicly optimistic that an agreement could be reached on an omnibus: “There is absolutely still a path and time for a deal.”

Administration officials continue to maintain that they do not see any real likelihood of a government shutdown.

Congressional aides acknowledged to CNN that the weekend talks went better than days prior, which is why Democrats have announced they will not introduce their own Democratic-only omnibus plan on Monday. Republicans on Capitol Hill had been reading a threat for Democrats to introduce their own bills as a messaging exercise that would only further divide negotiators, and by avoiding that messaging exercise, Republicans see a sign that Democrats are serious about trying to get to yes.

For now, a bipartisan deal on government funding remains elusive. Lawmakers have not yet been able to reach a negotiated agreement for a comprehensive, full-year funding package – known on Capitol Hill as an omnibus – amid a dispute between the two parties over how much money should be spent on non-defense, domestic priorities. Sen. Richard Shelby of Alabama, the ranking Republican member on the Senate Appropriations Committee, has told reporters the two sides are roughly $26 billion apart.

Republicans are critical of recent domestic spending by Democrats and argue that measures Democrats have passed while they have been in control both chambers of Congress, like the $1.9 trillion pandemic relief bill and the sweeping health care and climate bill, are wasteful and will worsen inflation. Democrats counter by saying those measures were necessary to help the country recover from the devastating impact of the pandemic as well as to tackle other critical priorities. And Democrats said that money to respond to Covid, health care and climate should not mean there should be less money next year for government operations and non-defense, domestic spending.

Senate Minority Leader Mitch McConnell said Monday that Democrats must drop their demands for additional spending on domestic programs in order to get a broad government funding bill passed before the holidays or risk passing a short-term bill into early next year after Republicans take control of the House and would be poised to demand even lower funding levels.

“Our Democratic colleagues have already spent two years massively – massively – increasing domestic spending using party line reconciliation bills outside the normal appropriations process,” McConnell said on the floor. “Clearly, our colleagues cannot now demand even more, more domestic spending than President Biden even requested in exchange for funding the United States military.”

“If House and Senate Democratic colleagues can accept these realities in the very near future, we may still have a shot at assembling a full-year funding bill that will give our military commanders the certainty they need to invest, plan and stay competitive with rivals like China. If our Democratic colleagues can’t accept those realities, the option will be a short term bipartisan funding bill into early next year,” McConnell said.

Senate Appropriations Committee Chairman Patrick Leahy, a Vermont Democrat, outlined the argument for his party in his own floor remarks on Thursday. Republicans, Leahy said, are “demanding steep cuts to programs the American people rely on.”

Referring to Democratic-passed legislation that Republicans have criticized, Leahy said, “Those bills were meant to get us out of the pandemic, get the nation healthy, and get our economy back on track, and I believe they are accomplishing that goal. They were not meant to fund the basic functions of the American government in fiscal year 2023.”

While lawmakers continue to negotiate, the federal government has begun the process of preparing for a potential shutdown, participating in the mandatory but standard process of releasing shutdown guidance to agencies ahead of Friday’s funding deadline.

Officials have emphasized that there is no real likelihood of a government shutdown, but the standard procedure laying out the steps toward bringing non-essential government functions to a halt is underway.

“One week prior to the expiration of appropriations bills, regardless of whether the enactment of appropriations appears imminent, OMB will communicate with agency senior officials to remind agencies of their responsibilities to review and update orderly shutdown plans, and will share a draft communication template to notify employees of the status of appropriations,” a document from the Office of Management and Budget stated.

That standard guidance was circulated last Friday, marking seven days before a shutdown could occur absent Congressional action.

Every department and agency has its own set of plans and procedures. Those plans include information on how many employees would get furloughed, what employees are essential and would work without pay (for example, air traffic controllers, Secret Service agents, US Centers for Disease Control and Prevention laboratory staff), how long it would take to wind down operations in the hours before a shutdown, and what activities would come to a halt.

This story has been updated with additional developments.

Read original article here

Georgia Senate candidate Herschel Walker described himself as living in Texas during 2022 campaign speech



CNN
 — 

Georgia Republican Senate candidate Herschel Walker, facing renewed and growing questions about his residency in the final week of the runoff campaign, described himself during a campaign speech in January as living in Texas and said he decided to run for Georgia’s Senate seat while at his Texas “home,” according to a CNN KFile review of his campaign speeches.

Georgia Democrats have called for an investigation by state officials into Walker’s residency after CNN’s KFile reported last week that Walker was getting a tax break in Texas intended for a primary residence, possibly running afoul of Texas tax law and some rules for establishing Georgia residency for voting and running for office.

“I live in Texas,” Walker said in January of this year, when speaking to University of Georgia College Republicans. Walker was criticizing Democrats for not visiting the border when he made the comments. “I went down to the border off and on sometimes,” he said.

Earlier in the speech, Walker said he decided to run for Georgia’s Senate seat while at his Texas home after seeing the country divided.

“Everyone asks me, why did I decide to run for a Senate seat? Because to be honest with you, this is never something I ever, ever, ever thought in my life I’d ever do,” said Walker. “And that’s the honest truth. As I was sitting in my home in Texas, I was sitting in my home in Texas, and I was seeing what was going on in this country. I was seeing what was going on in this country with how they were trying to divide people.”

The Georgia Republican is heading into a runoff election against Democratic Sen. Raphael Warnock on December 6. Walker and his campaign have so far not commented to CNN or others on the reporting of the tax break or questions about his residency.

On Monday, The Atlanta-Journal Constitution reported that Georgia authorities have been urged in a complaint to investigate Walker’s residency. Georgia Democrats in a statement called for an immediate investigation of Walker’s residency, and Congresswoman Nikema Williams, the chairwoman of the Democratic Party of Georgia, also asked authorities to see if Walker lied about living in Georgia.

“The Georgia Bureau of Investigations and the Georgia Attorney General’s office must immediately investigate whether Herschel Walker lied about being a Georgia resident,” Williams said.

A CNN KFile review of some of Walker’s media appearances and events from 2021 and 2022 finds Walker appeared on Fox News and other conservative media from his Texas home at least four times after announcing his candidacy for Georgia’s Senate seat.

The interviews at his Texas home took place twice in September 2021 and in February and March of 2022.

Before announcing, all of Walker’s media appearances on Fox News and on other conservative media, around 20 in total, took place in Texas.

Georgia Gov. Kemp asked if Herschel Walker shares his values. Hear his reply

Read original article here