
Ahead of shutdown deadline, Democrats face a dilemma on spending
A guide through the most important stories of the morning, delivered Monday through Friday.
Enter Email
Sign Up
Republicans pushed through legislation this month
Advertisement
'It is no secret the path to advancing more of our bills is going to be harder because of the unprecedented, partisan rescissions bill that Republicans just passed,' said Sen. Patty Murray of Washington, the top Democrat on the Appropriations Committee. 'It is extremely frustrating to see so many of the colleagues that have worked with us to pass funding bills turn around and vote to rip away the funding that we all agreed on.'
Advertisement
Russell Vought, the director of the Office of Management and Budget, told reporters recently that the appropriations process 'has to be less bipartisan,' infuriating Democrats who said the comment poisoned the well as they worked with Republicans to put together spending bills.
Because those bills must pass to keep the government running, spending deals have historically been bipartisan products that can draw enough support to clear a Senate filibuster, forcing lawmakers in both parties to set aside their most incendiary proposals and broker a compromise.
In a blowout 90-8 vote this week, most Senate Democrats voted to open floor debate on the chamber's first spending bill of the year, a typically less contentious measure covering military construction projects and veterans programs. Some other less divisive bills could potentially be added to the package.
But Democrats are keeping a close eye on Republicans and the White House. In a sign of their wariness about the coming funding fight, House and Senate Democratic leaders and senior Democratic members of the Appropriations Committee from both chambers met privately in Schumer's office this week to plot and make sure they were on the same page.
For now, Democrats appear ready to let the process play out.
Murray called some of the initial spending bills advancing through the Senate 'solid, compromise bills that reject the truly draconian cuts proposed by President Trump and House Republicans.'
'No one wants a shutdown, and the way we avoid that shutdown is by working together,' she said.
Advertisement
A major priority for Democrats is winning assurances from Senate Republicans that they will not again agree to allow the Trump administration to cancel spending after Congress approves the bills. Without some commitment in place, Democrats say it is uncertain whether they can back the spending measures.
'It is not clear to me there is a way to get over that hurdle,' said Sen. Chris Van Hollen, D-Md., a member of the Appropriations Committee.
At the same time, House Republicans are advancing funding bills setting drastically lower spending levels than their counterparts in the Senate. Republicans on the Appropriations Committee in that chamber this week approved a spending bill that would slash the budget for foreign aid and the State Department by 22%.
Still, some conservatives in the House have complained the spending bills they are advancing do not do enough to cut spending. The foreign aid bill provided billions more for some international programs than the president had requested, and rejected his calls to gut global broadcasting initiatives.
'I like the president's budget; I think he did a good job with it,' said Rep. Andrew Clyde of Georgia, a Republican on the appropriations panel. 'I think we should hold to those levels.'
House Republicans on the committee also voted to strip out a provision they had included in the measure that would have made it more difficult for the White House to cancel spending in the future.
With a potential funding impasse coming this fall, Sen. John Thune, R-S.D., the majority leader, has already begun the political effort to pin the blame on Democrats if the government shuts down. Thune, who has pledged to bring spending bills to the floor after Democrats refused to do so in recent years, shrugged off Democratic worries over the administration cuts.
Advertisement
'The Democrats have indicated, because they're so upset over the rescissions bill last week -- which, by the way, cut one-tenth of 1% of all federal spending -- that somehow they can use that as an excuse to shut down the appropriations process and therefore shut down the government,' he said. 'We think that would be a big mistake, and hopefully they will think better of it and work with us.'
This article originally appeared in
.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
4 minutes ago
- Yahoo
FTSE 100 LIVE: Markets higher as EU agrees 15% tariff in US trade deal
The FTSE 100 (^FTSE) and European stocks marched higher on Monday morning as investors cheered a trade deal struck over the weekend between the EU and US. The deal comes ahead of the 1 August deadline set by US president Donald Trump and brings more certainty about the future of commerce between the bloc and the US for investors. The pair agreed on a 15% tax on all EU goods — half of the 30% previously threatened by Trump. They also agreed to zero tariffs on certain products. Although the deal brings more certainty to trade relations, Trump could still change its terms as it is just a "high-level" agreement at this point. It also brings higher tariffs than have historically been implemented. In addition, the US set out an agreement with Japan and is set to meet with Chinese officials on Monday to hammer out new terms for import and export levies. Stocks: Create your watchlist and portfolio Sunday's deal was announced after private talks between Trump and European Commission president Ursula von der Leyen at his Turnberry golf course in South Ayrshire. London's premier index rose 0.4% after the opening bell. Martin Sorrell's WPP (WPP.L) and asset manager ICG (ICG.L) were among the top risers in the index. The DAX (^GDAXI) in Germany jumped 0.7%. The CAC 40 (^FCHI) in Paris rose more than 1.1%. The pan-European STOXX 600 (^STOXX) gained 0.8%. The euro (GBPEUR=X) fell slightly against the pound. Coming up this week: heavyweight earnings and central bank decisions Investor eyes are now turning to a jam-packed week on Wall Street. Heavyweight earnings highlight the most intense stretch of the season, with more than 150 S&P 500 companies set to report. Meta Platforms (META) and Microsoft (MSFT) lead off Wednesday, followed by Amazon (AMZN) and Apple (AAPL) on Thursday. HSBC (HSBA.L) also reports on Wednesday, while Shell (SHEL.L) is up on Thursday. Beyond earnings, the Federal Reserve takes centre stage. The central bank kicks off a two-day meeting Tuesday, with a decision expected Wednesday afternoon. While rates are widely expected to remain in the 4.25%-4.50% range, traders will be listening closely for any signs that policymakers are warming to a possible rate cut in September. All this is occurring alongside legal battles to open up the Fed's meetings to investor eyes, as well as Trump's general pressure on the central bank and Chair Jerome Powell. Here's the US stock futures chart US stock futures jump on EU-US deal US stock futures edged higher on Monday morning as investors braced for a packed week featuring earnings from Big Tech heavyweights, a Federal Reserve meeting, inflation data, and President Trump's Aug. 1 deadline to lock in key trade deals. Futures tied to the Dow Jones Industrial Average (YM=F) were up about 0.4%, while S&P 500 futures (ES=F) gained 0.5%. Nasdaq 100 futures (NQ=F) rose 0.6%. The rally follows a strong week on Wall Street. All three major indexes posted gains Friday, with the S&P 500 closing at an all-time high for a fifth straight session. Market sentiment got a boost Sunday night after the US and European Union reached a deal to reduce tariffs to 15% on EU goods, easing tensions with one of America's largest trading partners. Trump had previously been threatening imposing 30% tariffs from Friday. Read more on Yahoo Finance Good morning! Hello from London. Lucy Harley-McKeown here, gearing up to bring you the news after a very eventful weekend. The EU and US finally agreed a trade deal over the weekend ahead of the fast-approaching 1 August deadline set by president Trump. Coming up, first-half results from: Essilor Luxottica ( Heineken ( and Porsche ( Let's get to up this week: heavyweight earnings and central bank decisions Investor eyes are now turning to a jam-packed week on Wall Street. Heavyweight earnings highlight the most intense stretch of the season, with more than 150 S&P 500 companies set to report. Meta Platforms (META) and Microsoft (MSFT) lead off Wednesday, followed by Amazon (AMZN) and Apple (AAPL) on Thursday. HSBC (HSBA.L) also reports on Wednesday, while Shell (SHEL.L) is up on Thursday. Beyond earnings, the Federal Reserve takes centre stage. The central bank kicks off a two-day meeting Tuesday, with a decision expected Wednesday afternoon. While rates are widely expected to remain in the 4.25%-4.50% range, traders will be listening closely for any signs that policymakers are warming to a possible rate cut in September. All this is occurring alongside legal battles to open up the Fed's meetings to investor eyes, as well as Trump's general pressure on the central bank and Chair Jerome Powell. Investor eyes are now turning to a jam-packed week on Wall Street. Heavyweight earnings highlight the most intense stretch of the season, with more than 150 S&P 500 companies set to report. Meta Platforms (META) and Microsoft (MSFT) lead off Wednesday, followed by Amazon (AMZN) and Apple (AAPL) on Thursday. HSBC (HSBA.L) also reports on Wednesday, while Shell (SHEL.L) is up on Thursday. Beyond earnings, the Federal Reserve takes centre stage. The central bank kicks off a two-day meeting Tuesday, with a decision expected Wednesday afternoon. While rates are widely expected to remain in the 4.25%-4.50% range, traders will be listening closely for any signs that policymakers are warming to a possible rate cut in September. All this is occurring alongside legal battles to open up the Fed's meetings to investor eyes, as well as Trump's general pressure on the central bank and Chair Jerome Powell. Here's the US stock futures chart US stock futures jump on EU-US deal US stock futures edged higher on Monday morning as investors braced for a packed week featuring earnings from Big Tech heavyweights, a Federal Reserve meeting, inflation data, and President Trump's Aug. 1 deadline to lock in key trade deals. Futures tied to the Dow Jones Industrial Average (YM=F) were up about 0.4%, while S&P 500 futures (ES=F) gained 0.5%. Nasdaq 100 futures (NQ=F) rose 0.6%. The rally follows a strong week on Wall Street. All three major indexes posted gains Friday, with the S&P 500 closing at an all-time high for a fifth straight session. Market sentiment got a boost Sunday night after the US and European Union reached a deal to reduce tariffs to 15% on EU goods, easing tensions with one of America's largest trading partners. Trump had previously been threatening imposing 30% tariffs from Friday. Read more on Yahoo Finance US stock futures edged higher on Monday morning as investors braced for a packed week featuring earnings from Big Tech heavyweights, a Federal Reserve meeting, inflation data, and President Trump's Aug. 1 deadline to lock in key trade deals. Futures tied to the Dow Jones Industrial Average (YM=F) were up about 0.4%, while S&P 500 futures (ES=F) gained 0.5%. Nasdaq 100 futures (NQ=F) rose 0.6%. The rally follows a strong week on Wall Street. All three major indexes posted gains Friday, with the S&P 500 closing at an all-time high for a fifth straight session. Market sentiment got a boost Sunday night after the US and European Union reached a deal to reduce tariffs to 15% on EU goods, easing tensions with one of America's largest trading partners. Trump had previously been threatening imposing 30% tariffs from Friday. Read more on Yahoo Finance Good morning! Hello from London. Lucy Harley-McKeown here, gearing up to bring you the news after a very eventful weekend. The EU and US finally agreed a trade deal over the weekend ahead of the fast-approaching 1 August deadline set by president Trump. Coming up, first-half results from: Essilor Luxottica ( Heineken ( and Porsche ( Let's get to it. Hello from London. Lucy Harley-McKeown here, gearing up to bring you the news after a very eventful weekend. The EU and US finally agreed a trade deal over the weekend ahead of the fast-approaching 1 August deadline set by president Trump. Coming up, first-half results from: Essilor Luxottica ( Heineken ( and Porsche ( Let's get to it. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Business Insider
5 minutes ago
- Business Insider
China says it wants the world to work together to govern AI. The US, not so much.
At this weekend's World Artificial Intelligence Conference in Shanghai, boxing robots thrilled the crowd. But the real heavyweight bout is between the US and China over the future of AI. The theme of the Shanghai conference, which was organized in part by the Chinese government and lasts until Monday, is "global solidarity in the AI era." In his keynote address, Chinese Premier Li Qiang called for a new global organization to coordinate responses to AI advancements. "Overall, global AI governance is still fragmented. Countries have great differences, particularly in terms of areas such as regulatory concepts, institutional rules," he said, speaking in Chinese. "We should strengthen coordination to form a global AI governance framework that has broad consensus as soon as possible." Li's pitch contrasted with comments made by US President Donald Trump earlier in the week. On Wednesday, the US president released his " AI Action Plan" and signed three executive orders. All of them, Trump said, were designed to free AI companies from regulatory burdens. "From this day forward, it'll be a policy of the United States to do whatever it takes to lead the world in artificial intelligence," he said before signing his executive orders. Trump's doctrine will likely benefit American AI companies. Many of them, like OpenAI, Meta, and Google DeepMind, submitted recommendations to the president and praised the new policies. However, it's an open question whether forgoing stricter regulations in the United States will benefit humanity. AI industry leaders have long warned about the threats AI could pose — everything from disinformation and economic inequality to total loss of all human control. In 2023, a group of prominent AI scientists, including OpenAI CEO Sam Altman, Google DeepMind CEO Demis Hassabis, and Anthropic CEO Dario Amodei, signed a one-sentence statement calling for AI regulation. "Mitigating the risk of extinction from AI should be a global priority alongside other societal-scale risks such as pandemics and nuclear war," it said. Altman said last year that AI could have a "negative impact way beyond the realm of one country." He said the tech should be regulated by an "international agency looking at the most powerful systems and ensuring reasonable safety testing." One way to do that is through an agreed-upon global framework similar to the Nuclear Nonproliferation Treaty, which is enforced by the United Nations and which all but four countries have signed. The UN tech chief, Doreen Bogdan-Martin, told the AFP on Saturday that the world urgently needed a global deal to regulate AI. "We have the EU approach. We have the Chinese approach. Now we're seeing the US approach. I think what's needed is for those approaches to dialogue," she said. The Trump administration, however, is likely to hinder any such international agreement. Beyond its own effort to loosen restrictions at home, it has largely dismissed other global collaborations in favor of its America First policy. At the Shanghai conference, Geoffrey Hinton, a computer scientist known as the Godfather of AI, said international cooperation on AI would be difficult. He said few countries agree on basics like how misinformation should be policed. He said there was one subject, however, on which the whole world seems aligned: Humans should not let AI supersede their control. "So on that particular issue, it should be easy to get international collaboration," he said at the conference, adding, however, that it "may be difficult with the current US administration." "But rational countries will collaborate on that," he said.
Yahoo
12 minutes ago
- Yahoo
Trump deal with Europe underlines new standard of (at least) 15% tariffs
One thing was clear about a vague trade deal announced Sunday by President Trump and European Commission President Ursula von der Leyen: a headline tariff rate of 15% on European goods. It's the latest example of a new tariff floor for Trump that has been backed by other recent deals and letters, including one with Japan this past week that also saw a 15% rate. "We'll have a straight simple tariff of anywhere between 15% and 50%," Trump asserted. Both Trump and von der Leyen highlighted the 15% rate Sunday after their meeting in Scotland. Trump claimed a 'straight-across tariff of 15%' for 'automobiles and everything else,' adding that US exports to Europe would face a 0% rate. Von der Leyen confirmed the 15% tariffs 'across the board and inclusive," adding that it would bring stability and predictability to US-Europe relations. Comments later in the day from the European Commission President suggested that it might be a little more complex and that the deal also included "zero for zero tariffs on a number of strategic products" including aircraft components and other products like some minerals. Trump added that the deal includes hundreds of billions of dollars in new EU purchases of U.S. energy as well as military equipment. The 15% rate may get a mixed reaction in Europe after negotiators had previously pushed for free trade (or more recently a 10% rate), but it's a halving from the 30% tariffs Trump promised in a letter earlier this month. Sunday's agreement with the European Union — America's largest trading partner — comes following agreements with Vietnam, the Philippines, and Indonesia with saw tariff rates of between 19% and 20%. Only one negotiation has seen Trump agree to a tariff below 15% — a pact with the UK in May — with Treasury Secretary Scott Bessent writing earlier this month that "usually the first person who makes a deal makes the best deal." Some details unclear Trump also said Sunday that many of the remaining countries facing a deadline of Aug. 1 would face a letter dictating rates, saying they would be be 'very universal for most' and that the European deal is 'the big one.' The president said three to four additional countries could be in for deals in the coming days while most nations would simply get letters. In any case, the 15% baseline is a shift — even from recent weeks. Trump earlier this month said that many countries would see a rate of 'probably 10% or 15%, we haven't decided yet.' Even last Sunday, Commerce Secretary Howard Lutnick told CBS: "You should assume that the small countries... will have a baseline tariff of 10%." This new standard is also notable fulfillment of an oft-made campaign trail promise that saw the then-candidate pledge to create a "ring around the collar" of the US economy with a blanket rate of between 10% and 20%. Fulfilling that pledge — which was often dismissed as unrealistic at the time — has now become not only accepted but even a plus for markets after six months of Trump's second term have seen threats of higher duties that have reordered world trade actions. The recent announcement of the deal with Japan with a 15% tariff on goods like autos was welcomed by traders and helped fuel rises in US markets as well as the Japanese Nikkei 225, which immediately surged on the news. Japanese automakers in particular saw a jump after that deal as those companies celebrated a lowering of auto tariffs from 25% to 15%. European automakers now find themselves in a similar position. Trump, meanwhile, says he has no plans to amended his other sector specific tariffs as part of the European Union deal — even as Von der Leyen suggested they would largely be covered by the deal. There are 50% tariffs currently levied on steel and aluminum (with planned duties at the same rate on copper), and Trump said Sunday that those tariffs are a "worldwide thing that stays the way it is." Trump also reiterated his promises of sectoral tariffs on semiconductors and pharmaceuticals to be rolled out, which could be much higher than 15% — unless Europe gets a carveout. And Von der Leyen suggested the 15% rate would apply in comments later Sunday when she said the 15% rate would apply to "the vast majority of EU cars, semiconductors, pharmaceuticals" as she called the rate "a clear ceiling." Also on Sunday, Commerce Secretary Howard Lutnick said that a new semiconductor tariffs are nearly ready and would be unveiled in about "two weeks time." This story has been updated with additional developments. Ben Werschkul is a Washington correspondent for Yahoo Finance. Click here for political news related to business and money policies that will shape tomorrow's stock prices