How White House and GOP leaders are working to sell the budget deal

Published

2 years ago

May 29, 2023

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After President Biden and Speaker Kevin McCarthy (R-Calif.) signed off on a final budget agreement and a raise of the debt ceiling, the two sides moved onto a difficult task: selling the legislation to their respective parties to get it passed through Congress.

Conservative Republicans and progressive Democrats have been quick to voice concerns with certain aspects of the deal, with each side expressing worry that their leadership gained too little or conceded too much in negotiations.

White House officials and McCarthy’s team spent much of Sunday working to spin the deal as a victory for their own side and assure members that it was the other party that ultimately caved on certain priorities.

“Right now the Democrats are very upset,” McCarthy said on “Fox News Sunday,” asserting that House Minority Leader Hakeem Jeffires (D-N.Y.) told him “there’s not one thing in the bill for Democrats.”

In remarks Sunday evening, Biden said the final agreement “protects key priorities and accomplishments and values that congressional Democrats and I have fought long and hard for.”

Asked what he would say to members who believe Biden made too many concessions, the president responded, “They’ll find I didn’t.”

The White House has focused on reassuring Democrats about the bill largely by pointing to ways that it is significantly watered down from the Republican legislation that passed the House in late April, dubbed the Limit, Save, Grow Act.

While the 99-page bill does include changes to work requirements for government assistance programs, White House officials argued the agreed upon language would have “much less severe consequences” than the House GOP legislation.

The White House has also argued that the overall spending agreements are ultimately a win for Democrats. A White House source argued the deal would help avert “enormous cuts to key programs and investments.”

And officials were also quick to point to key priorities that were left untouched in the final legislation, including that there are no changes to Medicare work requirements and that veterans medical care will be fully funded.

Perhaps the broadest argument the White House will make to persuade Democrats to back the agreement is that passing the bill would mean raising the debt ceiling and averting a default that experts warned could have triggered a recession and sunk the economy that will be central to any reelection campaign for Biden.

While some conservatives had pushed for the debt ceiling to be pushed into 2024, making it an issue in next year’s election, the agreed upon bill would suspend the debt ceiling into 2025.

“We think taking the threat of default off the table into 2025 is a significant upside for the economy, a significant accomplishment,” a White House official said.

Republicans have painted a similarly rosy picture of how the agreed upon text amounts to a victory for their side.

Some in the GOP argued the fact that Republicans pulled the White House to the negotiating table over the budget in order to pass a debt ceiling increase was a win in itself, because it allowed the party to extract some concessions in the process.

“We have something, right? We negotiated,” Rep. Lisa McClain (R-Mich.), House GOP conference secretary, told reporters. “Is it what we wanted or what I wanted? No. I wish we would’ve gotten more. It’s clearly better than a clean debt ceiling, that’s for sure.”

But there are also specific policies in the bill that Republican leadership has been keen to highlight to members.

The agreement includes changes to work requirements for food stamps and the Temporary Assistance for Needy Families (TANF) program.

A document distributed to Republican offices about the agreement highlights a rollback of non-defense discretionary spending to fiscal year 2022 levels, while limiting topline federal spending to 1 percent annual growth for six years.

The same document highlighted an agreement to cut a fiscal year 2023 funding request for new IRS agents and a deal to claw back billions of dollars in unspent COVID-19 relief funds, two priorities for Republicans.

In a nod to the GOP’s conservative wing, the deal includes a measure to cap continuing resolution to fund the government at 99 percent of current levels until Congress passes all 12 appropriations bills, an idea that has been backed by Rep. Thomas Massie (R-Ky.).

“The American people elected House Republicans to stop the out-of-control inflationary spending that has broken family budgets,” members of House Republican leadership said in a joint statement on Sunday night. “Today, we secured a historic series of wins worthy of the American people.”

Ultimately, both the White House and Republican leaders only need to convince enough of their respective parties to back the budget agreement so that it gets a majority in the House and 60 votes in the Senate.

The rhetoric from Biden and McCarthy on Sunday simultaneously reflected two leaders seeking to portray themselves as having gotten the better side of negotiations, while acknowledging that working in a divided government often means settling for a final product that doesn’t contain every single priority. The Memo: Trump and his primary rivals get set for fight over Ukraine Companies and individuals without AI expertise will be left behind: tech CEO

“Maybe it doesn’t do everything for everyone, but this is a step in the right direction that no one thought that we would be able to today,” McCarthy told “Fox News Sunday.”

Speaking Sunday evening at the White House, Biden said the deal “represents a compromise, which means no one got everything they want. But that’s the responsibility of governing.”

–Mychael Schnell contributed

US

Trump trade war expands globally as 25% tariffs on aluminium and steel take effect

Published

26 mins ago

March 12, 2025

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Trump trade war expands globally as 25% tariffs on aluminium and steel take effect

Donald Trump’s trade war has expanded to cover the world, with 25% tariffs on all steel and aluminium imports to the US in effect from today.

The duties were announced in mid-February as stock market investors cheered President Trump‘s ‘America first’ agenda which saw only Mexico, Canada and China come under initial pressure.

While two rounds of tariffs on China have been enacted, 25% duties on some Canadian and most Mexican cross-border trade have been withdrawn until 2 April at the earliest.

The tariffs beginning today are designed to protect US manufacturing and bolster jobs by making foreign-made products less attractive.

They threaten to make the cost of things like cars to soft drink cans – and therefore some drinks – more expensive.

Canada is the biggest exporter of both steel and aluminium to America. However, the White House on Tuesday rowed back on a threat to double the country’s tariff to 50%.

The EU is to retaliate with €26bn of counter tariffs on US goods starting from 1 April, the European Commission said on Wednesday morning.

Commission president Ursula von der Leyen said she remained open to “meaningful dialogue” with the US.

During Mr Trump’s first term, the bloc countered with charges on products such as bourbon and jeans.

The American tariffs are also a threat to UK steel exports – worth north of £350m annually – with the bulk of that coming from stainless steel.

The business secretary Jonathan Reynolds confirmed on Wednesday morning that while he was disappointed, there would be no immediate retaliation by the UK government as negotiations continue over a wider trade deal with the US.

“I will continue to engage closely and productively with the US to press the case for UK business interests,” he said.

Any fall in demand among US customers will leave producers scrambling for new markets, though some could be directed to domestic projects within the UK.

That steel could prove attractive as China, the world’s largest producer of steel, has threatened to limit its exports in response to the Trump tariffs.

President Trump is under growing pressure to row back, particularly in his planned battle with nearest neighbours Mexico and Canada.

Markets have turned on the tariff regime, with jitters about the effects of higher import prices souring the US economy first being seen through the currency and bond markets.

The dollar has lost around five cents against both the pound and a resurgent euro alone in the past few weeks.

Stock markets have joined in, with the combined market value of the broad S&P 500’s constituent companies down by more than $4trn on the peak seen just last month.

The big fear is that the protectionism will push the world’s largest economy into recession – a scenario Mr Trump did not deny was possible during a weekend interview.

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US firms, already also grappling the complexities associated with an expanding tariff regime, are also letting it be known that they expect damage to their own businesses.

Delta Airlines lowered its first quarter growth forecast on the back of the turmoil this week while US firms are increasingly facing product boycotts.

Travel bodies have also reported a big drop in the number of Canadians crossing the US border, with road trips down by almost a quarter last month compared to February 2023 according to Statistics Canada.

US

Zelenskyy ready to accept ceasefire deal – as US to resume intelligence sharing and military aid with Ukraine

Published

26 mins ago

March 12, 2025

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Zelenskyy ready to accept ceasefire deal - as US to resume intelligence sharing and military aid with Ukraine

Volodymyr Zelenskyy is ready to accept a ceasefire deal – as the US says it has immediately resumed intelligence sharing and military aid with Ukraine.

In a post on Telegram after US and Ukrainian officials met in Saudi Arabia, Mr Zelenskyy said “the American side understands our arguments” and “accepts our proposals” – and that Kyiv “accepts” the US proposal of a full 30-day ceasefire with Russia.

Ukraine war latest: Ball now in Russia’s court, US says

“I want to thank President Trump for the constructiveness of the conversation between our teams,” he said.

“Today, in the conversation, the American side proposed to take the first step immediately and try to establish a full ceasefire for 30 days, not only concerning rockets, drones, and bombs, not only in the Black Sea, but also along the entire front line.

“Ukraine accepts this proposal, we consider it positive, and we are ready to take this step.”

‘Ukraine is ready for peace’

The Ukrainian president then said the US “must convince Russia to do this” and that “if the Russians agree – that’s when the silence will work”.

He added: “An important element of today’s conversation is America’s readiness to restore defensive assistance to Ukraine, as well as intelligence support.

“Ukraine is ready for peace. Russia must show whether it is ready to stop the war or continue it.

“The time has come for the full truth. I thank everyone who helps Ukraine.”

Meanwhile, in a joint statement with Kyiv following nine-hour-long talks in Jeddah, the US State Department said it will immediately lift the pause on intelligence-sharing and military aid.

A Ukrainian source told Sky News earlier this month that the US had stopped sharing all intelligence with Kyiv.

‘Ball is now in Russia’s court’

Marco Rubio, US secretary of state, also told reporters that “the ball is now in Russia’s court” after meeting with the Ukrainian delegation.

After the positive talks, Mr Rubio said “we’re going to take the offer” to Russia, adding: “We’re going to tell them this is what’s on the table, Ukraine is ready to stop shooting and start talking, and now it’ll be up to them to say yes or no.

“I hope they’re going to say yes, and if they do then I think we made great progress.”

He then said that while no deadline has been set, he hopes a deal can be reached “as soon as possible” and that “this is serious stuff, this is not Mean Girls, this is not some episode of some television show”.

“The number one goodwill gesture we could see from the Russians is to see the Ukrainian offer and reciprocate it with a yes,” Mr Rubio added.

National security adviser Mike Waltz also added it is “very clear” that Kyiv shares Donald Trump’s vision for peace and that “they share his determination to end the fighting”.

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Over in the US, Mr Trump said that officials will meet with Russia either today or tomorrow and confirmed he would invite Mr Zelenskyy back to the White House.

“We want to get the Ukraine war over with,” the US president said, before saying he hopes to have a total ceasefire in the coming days.

He also told reporters he thinks he will talk to Russian President Vladimir Putin this week – but warned “it takes two to tango”.

Last month, Mr Trump accused Mr Zelenskyy of “gambling with World War Three” in an Oval Office meeting.

US vice president JD Vance told the Ukrainian president “you should be thanking” Mr Trump “for trying to bring an end to this conflict,” sparking a tense 10-minute back-and-forth.

A press conference with the two leaders and the signing of an agreement was then cancelled.

US

What’s in the US-proposed Russia and Ukraine ceasefire deal?

Published

26 mins ago

March 12, 2025

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What's in the US-proposed Russia and Ukraine ceasefire deal?

Volodymyr Zelenskyy has said he is ready to agree to a ceasefire with Russia after successful talks with the US today.

The Ukrainian president said on Telegram that “we are ready to take this step” and said the US “must convince Russia to do this”.

Ukraine war latest: Trump warns Putin ‘it takes two to tango’

Following a meeting with Kyiv officials in Saudi Arabia, US secretary of state Marco Rubio told reporters “the ball is now in Russia’s court” and the next step is for Moscow to agree to terms.

US President Donald Trump said “we want to get the Ukraine war over with” and hopes to have a total ceasefire in the coming days.

But what has been agreed by the US and Ukraine? Here’s what we know so far…

Straight after the nine-hour talks in Jeddah, the US State Department said Washington would immediately lift the pause on intelligence sharing and military aid to Ukraine.

Mr Zelenskyy confirmed in his post that an “important element of today’s conversation is America’s readiness to restore defensive assistance to Ukraine, as well as intelligence support”.

As part of their plan, the US said both sides should agree to an immediate 30-day ceasefire which could then be mutually extended.

A joint statement from the US and Ukraine added that Washington “will communicate to Russia that Russian reciprocity is the key to achieving peace”.

The Ukrainian president added that the proposal was “not only concerning rockets, drones, and bombs, not only in the Black Sea, but also along the entire front line” – although the official statement does not mention this.

The statement also makes no mention of territory – despite Ukraine previously calling for Russia to return occupied lands, and the US saying Kyiv might have to concede territory – or the foreign deployment of soldiers in Ukraine for peacekeeping.

The joint statement does say officials discussed aid efforts as part of the peace process, including “the exchange of prisoners of war, the release of civilian detainees, and the return of forcibly transferred Ukrainian children”.

Ukraine also reiterated that European partners would be involved in the peace process, and both countries agreed a deal on Kyiv’s minerals and rare earths should “conclude as soon as possible”.

What has Ukraine said?

Mr Zelenskyy said Ukraine agrees to the terms, adding that “the American side understands our arguments” and “accepts our proposals”.

He then said he wanted “to thank President Trump for the constructiveness of the conversation between our teams,” before adding: “Ukraine is ready for peace.

“Russia must show whether it is ready to stop the war or continue it. The time has come for the full truth.”

Ukraine’s foreign minister Andrii Sybiha – who was in Jeddah for the talks – called the meeting a step forward “both on the path to peace and in developing the strategic Ukraine-US partnership” on social media.

And speaking to Sky News’ Mark Austin, Ukrainian MP Lesia Vasylenko added that “we will have to wait and see what comes of it” but that “clearly it’s good news”.

“On first glance it’s amazing,” she said. “If we can get the Russians to agree to a ceasefire for 30 days, then our soldiers on the frontline will have a break…”

However, she said: “In previous years [Russia has] shown an absolute inability to understand what a ceasefire is and to stick to the basic rules of a ceasefire – which means not firing any weapons.”

What has the US said?

Mr Rubio said the next step is “going to take the offer” to Russia, adding: “We’re going to tell them this is what’s on the table, Ukraine is ready to stop shooting and start talking, and now it’ll be up to them to say yes or no.

“I hope they’re going to say yes, and if they do then I think we made great progress.”

Mr Trump echoed this outside the White House, saying Ukraine has agreed to the “total ceasefire” and that “hopefully Russia will agree to it”.

He added that he will speak to Vladimir Putin in the coming days, warning the Russian president that “it takes two to tango”.

How has Russia reacted?

So far, there’s been no official reaction to the proposal other than to acknowledge Mr Trump’s comments about talks within the next week.

But ahead of the breakthrough talks in Jeddah, Russian foreign minister Sergei Lavrov said Mr Zelenskyy does not want peace.

According to state news agency TASS, Mr Lavrov added: “Mr Zelenskyy publicly declares that he does not want any ceasefire unless the Americans provide him with assurances that they will launch a nuclear strike on Russia if necessary.

“He frames the issue in much the same manner. For now, [a peace talk] is not serious.”

Mr Zelenskyy has not called for the US to strike Russia with nuclear weapons, but did say last month that Ukraine should be given them if talks on joining NATO are protracted for years.