Quantcast
Connect with us

Shutdown bites economy, US Coast Guard, as talks to end impasse stall

Published

on

The U.S. economy is taking a larger-than-expected hit from the partial government shutdown, White House estimates showed on Tuesday, as contractors and even the Coast Guard go without pay and talks to end the impasse seemed stalled.

The longest such shutdown in U.S. history dragged into its 25th day with neither President Donald Trump nor Democratic congressional leaders showing signs of bending on the topic that triggered it – funding for a wall Trump promised to build along the border with Mexico.

Trump insists Congress shell out $5.7 billion for wall funding this year, as about 800,000 federal workers go unpaid during the partial shutdown. He has refused to support legislation providing money for a range of agencies to operate until he gets the wall funds.

With the shutdown dragging on, federal courts will run out of operating funds on Jan. 25 and face “serious disruptions” if the shutdown continues, according to a court statement.

To try to take some of the sting out of the shutdown, Trump planned to sign on Wednesday the “Government Employee Fair Treatment Act of 2019,” which is legislation that would ensure that those federal workers furloughed will receive backpay once the shutdown is over.

ADVERTISEMENT

The Internal Revenue Service said it planned to bring more than 46,000 furloughed workers back to their jobs as the agency enters its peak season of processing tax returns and refunds.

Trump invited a bipartisan group of lawmakers for lunch to discuss the standoff, but the White House said Democrats turned down the invitation. Nine House of Representatives Republicans, none of whom are involved in party leadership, attended.

One attendee, John Katko, told CNN that Trump “wanted to continue to engage in negotiations.” He did not mention any new proposals Trump might pursue.

ADVERTISEMENT

House Democratic leaders said they did not tell members to boycott Trump’s lunch but had pressed those invited to consider whether the talks would be merely a photo-op for Trump.

Separately, a bipartisan group of senators explored solutions. Senator Lisa Murkowski, a Republican participant, told reporters in a Capitol hallway that the group had “momentum,” but gave no details.

Senator Joe Manchin, a Democratic participant, said: “Anything can be part of the negotiations.”

ADVERTISEMENT

Lawmakers were supposed to be in their districts and states next week after Monday’s Martin Luther King Jr. holiday, but the House and Senate planned to cancel the recess if the shutdown persists.

While the shutdown hit about one-quarter of federal operations, a Reuters/Ipsos poll released on Tuesday found that nearly four in 10 U.S. adults said they were either affected by the impasse or know someone who is. Fifty-one percent of those polled blamed Trump for the shutdown.

SEEKING COAST GUARD FUNDING
Homeland Security Secretary Kirstjen Nielsen said she was working with the White House and Congress to pass legislation to fund the Coast Guard. While the Pentagon is not affected by the shutdown, the Coast Guard budget is part of Nielsen’s department.

ADVERTISEMENT

“Like the other branches of the U.S. military, active duty @USCG should be paid for their service and sacrifice to this nation,” Nielsen wrote on Twitter.

The Trump administration had initially estimated the shutdown would cost the economy 0.1 percentage point in growth every two weeks that employees were without pay.

But on Tuesday, there was an updated figure: 0.13 percentage point every week because of the impact of work left undone by 380,000 furloughed employees as well as work left aside by federal contractors, a White House official said.

ADVERTISEMENT

The economic risk prompted hawkish Federal Reserve officials to call for the central bank to pause interest rate hikes.

The shutdown’s effects have begun to reverberate across the country.

Longer lines have formed at some airports as more security screeners fail to show up for work.

ADVERTISEMENT

Speaking on CNBC, Delta Air Lines Inc Chief Executive Officer Ed Bastian said the partial shutdown would cost the airline $25 million in lost revenue in January because fewer government contractors are traveling.

Food and drug inspections have been curtailed but about 400 U.S. Food and Drug Administration staffers returned to work, Commissioner Scott Gottlieb said. They focus on high-risk medical devices, drugs and food.

Democrats, who took over the House this month, have rejected the border wall but back $1.3 billion in other border security measures this year. They have insisted the government be fully open before negotiations occur.

ADVERTISEMENT

House Democrats have passed a number of bills to end the shutdown, but Senate Majority Leader Mitch McConnell, a Republican, has said the chamber will not consider anything Trump would not sign into law.

Reporting by Steve Holland and David Morgan; Additional reporting by Susan Cornwell, Ginger Gibson, David Morgan, Makini Brice, Susan Heavey, Alexandra Alper, Lisa Lambert and Eric Beech; Writing by Roberta Rampton and Richard Cowan; Editing by Bill Trott and Peter Cooney


Report typos and corrections to: [email protected]. Send news tips to: [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

Breaking Banner

Trump asked right-wing conspiracy theorist congressman to help him pick his next Director of National Intelligence

Published

on

On Monday, Politico reported that President Donald Trump is consulting with Rep. Devin Nunes (R-CA) about who he should consider to replace Director of National Intelligence Dan Coats.

Nunes has led the Republican side of the House Intelligence Committee since 2015 and chaired the committee for four years, despite having no professional qualifications of any kind for that role. Since 2017, he has been known for his stunts and conspiracy theories intended to discredit the Russia investigation and throw suspicion on anyone who looks into Trump's conduct.

Continue Reading

Breaking Banner

Conservative newspaper hilariously trolls Trump about his failure to build any new border wall

Published

on

Donald Trump on the US-Mexico Border

The conservative Washington Examiner trolled President Donald Trump for his failure to construct any new border barricade during his 30 months in office.

On Monday, Trump lashed out at the media on Twitter for not giving him positive coverage for his wall, which he erroneously claimed would be paid for by Mexico.

The Examiner replied to Trump on Twitter, posting an article headlined, "Trump has not built a single mile of new border fence after 30 months in office."

Continue Reading
 

Breaking Banner

Here’s how a new study implies the Supreme Court has killed 16,000 people since 2012

Published

on

A new paper published by the National Bureau of Economic Research looked into the effects of the Affordable Care Act's Medicaid expansion to people below 138 percent of the poverty line, which has seen nearly 15 million people enrolled in participating states. The results were encouraging: the mortality rate for near-elderly adults has dropped over 9 percent in the four years for which data is available.

But while this is cause for celebration, The Atlantic staff writer Annie Lowrey offered a darker take on the implications of these numbers:

Continue Reading
 
 
 

Copyright © 2019 Raw Story Media, Inc. PO Box 21050, Washington, D.C. 20009 | Masthead | Privacy Policy | For corrections or concerns, please email [email protected]

Join Me. Try Raw Story Investigates for $1. Invest in Journalism. Escape Ads.
close-image