logo
The House is poised to OK Trump's $9 billion cut to public broadcasting and foreign aid

The House is poised to OK Trump's $9 billion cut to public broadcasting and foreign aid

Boston Globe18-07-2025
Get Starting Point
A guide through the most important stories of the morning, delivered Monday through Friday.
Enter Email
Sign Up
The House has already approved a previous version of the bill. But it now needs to take up the version that passed the Senate before it can be sent to Trump's desk for his signature.
Advertisement
'We need to get back to fiscal sanity and this is an important step,' House Speaker Mike Johnson, R-La., told reporters shortly after the chamber opened.
The package cancels about $1.1 billion for the Corporation for Public Broadcasting and nearly $8 billion for a variety of foreign aid programs, many designed to help countries where drought, disease and political unrest endure.
The effort to claw back a sliver of federal spending comes just weeks after Republicans also muscled through Trump's tax and spending cut bill without any Democratic support. The Congressional Budget Office has projected that measure will increase the U.S. debt by about $3.3 trillion over the coming decade.
Advertisement
A heavy blow to the Corporation for Public Broadcasting
The cancellation of $1.1 billion for the CPR represents the full amount it is due to receive during the next two budget years.
The White House says the public media system is politically biased and an unnecessary expense.
The corporation distributes more than two-thirds of the money to more than 1,500 locally operated public television and radio stations, with much of the remainder assigned to National Public Radio and the Public Broadcasting Service to support national programming.
Democrats were unsuccessful in restoring the cut in the Senate.
Lawmakers with large rural constituencies have voiced particular concern about what the cuts to public broadcasting could mean for some local public stations in their state.
Sen. Lisa Murkowski, R-Alaska, said the stations are 'not just your news — it is your tsunami alert, it is your landslide alert, it is your volcano alert.'
Later in the day Tuesday, as the Senate debated the bill, a 7.3 magnitude earthquake struck off the remote Alaska Peninsula, triggering tsunami warnings on local public broadcasting stations that advised people to get to higher ground.
Sen. Mike Rounds, R-S.D., said he secured a deal from the White House that some money administered by the Interior Department would be repurposed to subsidize Native American public radio stations in about a dozen states.
But Kate Riley, president and CEO of America's Public Television Stations, a network of locally owned and operated stations, said that deal was 'at best a short-term, half-measure that will still result in cuts and reduced service at the stations it purports to save.'
Advertisement
Inside the cuts to foreign aid
Among the foreign aid cuts are $800 million for a program that provides emergency shelter, water and family reunification for refugees and $496 million to provide food, water and health care for countries hit by natural disasters and conflicts. There also is a $4.15 billion cut for programs that aim to boost economies and democratic institutions in developing nations.
Democrats argued that the Republican administration's animus toward foreign aid programs would hurt America's standing in the world and create a vacuum for China to fill.
'When we retreat from the world diplomatically and through our assistance to vulnerable people, America will be alone, without allies, in a less stable world,' said Rep. Rosa DeLauro, D-Conn. 'And you know who will come out ahead? China. Russia. Iran.'
The White House argued that many of the cuts would incentivize other nations to step up and do more to respond to humanitarian crises and that the rescissions best served the American taxpayer.
'The money that we're clawing back in this rescissions package is the people's money. We ought not to forget that,' said Rep. Virginia Foxx, R-N.C., chair of the House Rules Committee.
After objections from several Republicans, Senate GOP leaders took out a $400 million cut to PEPFAR, a politically popular program to combat HIV/AIDS that is credited with saving millions of lives since its creation under Republican President George W. Bush.
Looking ahead to future spending fights
Democrats say the bill upends a legislative process that typically requires lawmakers from both parties to work together to fund the nation's priorities.
Triggered by the official rescissions request from the White House, the legislation only needs a simple majority vote to advance instead of the 60 votes usually required to break a filibuster. That meant Republicans could use their 53-47 majority to pass it along party lines.
Advertisement
In the end, two Republican senators, Murkowski and Sen. Susan Collins of Maine, joined with Democrats in voting against the bill, though a few other Republicans also raised concerns about the process.
'Let's not make a habit of this,' said Senate Armed Services Committee Chairman Roger Wicker of Mississippi, who voted for the bill but said he was wary that the White House wasn't providing enough information on what exactly will be cut.
Russ Vought, the director of the Office of Management and Budget, said the imminent successful passage of the rescissions shows 'enthusiasm' for getting the nation's fiscal situation under control.
'We're happy to go to great lengths to get this thing done,' he said during a breakfast with reporters hosted by the Christian Science Monitor.
In response to questions about the relatively small size of the cuts -- $9 billion -- Vought said that was because 'I knew it would be hard' to pass in Congress. Vought said another rescissions package is 'likely to come soon.'
Associated Press writers Becky Bohrer in Juneau, Alaska, and Seung Min Kim contributed to this report.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

After a blown deadline, what next for US-Canada trade?
After a blown deadline, what next for US-Canada trade?

Yahoo

time23 minutes ago

  • Yahoo

After a blown deadline, what next for US-Canada trade?

A self-imposed deadline for a new US-Canada trade deal came and went on Friday. So what happens next for these two deeply entwined neighbours? Canada and the US have been locked in a tariff war for six months and, despite talk of "intense" negotiations in recent weeks, a trade agreement remains elusive. Both President Donald Trump and Prime Minister Mark Carney have poured cold water on the idea they will reach a quick, and tariff-free, deal. And Trump's open criticism of Canada's move to recognise a Palestinian state dashed hopes for a last-minute agreement earlier this week. The pessimism marks a shift in tone from as recently as June's G7 meeting, when the two leaders set themselves the summer deadline. Canadian negotiators have come to the conclusion that "it's not the end of the world" if a quick deal isn't reached and "that quality over speed and a rushed agreement matters a lot", said Fen Hampson, a professor of international affairs at Carleton University in Ottawa. Carney - who has been tight-lipped about the negotiation details - has said as much himself, repeating that just "any deal" won't do. Still, there are pressures on both sides to give businesses a reprieve. Conservative leader Pierre Poilievre said on Friday he shares "Canadians' disappointment" that a deal was not reached by the deadline. He urged Carney's Liberals to do more to "take back control of our economic future". Canada is now facing a 35% tariff rate, though there is a carve out for goods compliant under a current free trade deal. American global tariffs on steel, aluminium, autos and auto parts are hurting, as the US is a top market for those sectors. On Sunday, Canada's minister for US-Canada trade Dominic LeBlanc told the BBC's US partner CBS News that trade talks will continue, and that negotiations so far have been "informative, constructive and cordial." LeBlanc added he expects Carney and Trump to speak again in the coming days. "We think there is an option of striking a deal that will bring down some of these tariffs, and provide greater certainty to investment," he said. The Trump administration has justified those tariffs by claiming a lack of co-operation on stemming the flow of illicit drugs like fentanyl. Canada denies that, noting about 1% of US fentanyl imports originate in Canada. It has also brought in new border protections and a "fentanyl czar" in recent months in an effort to address Trump's concerns. Threatened tariffs on copper and the expected end of a global tariff exemption used by shoppers of goods under $800 could also pinch. Canada has responded with C$60bn ($43.3bn; £32.3bn) in counter tariffs on various American goods - the only country along with China to directly retaliate against Trump. "It comes as no surprise that businesses are craving certainty after months and months of tumultuous announcements," said Catherine Fortin-Lefaivre, vice-president of international policy and global partnership at the Canadian Chamber of Commerce. "But at the same time, they're not craving certainty at the expense of a really bad deal." A few factors give Canada some breathing room. On paper, it looks like the country is facing a severe tariff rate from the US, but trade is currently more free than the levies suggest at first glance. In March, Trump announced a tariffs reprieve on goods compliant with the Canada–United States–Mexico Agreement, known in Canada as CUSMA and the US as the USMCA. That deal - negotiated during Trump's first term in office - came into force five years ago. Almost 90% of Canadian exports to the US are ultimately able to cross the border duty free, if firms file out necessary paperwork, under that agreement. "That has given us a buffer, no question about it, that other countries don't have right now," said Prof Hampson. It means Canada is overall paying a much lower tariff rate than many of the deals already inked with the US, like the EU, South Korea and Japan at 15%, or Indonesia and the Philippines at 19%. Ottawa has also brought in some relief programmes for affected industries and has also collected about C$1.5bn more in import duties than in the same period last year, due to the counter tariffs. Why Trump's global tariffs 'victory' may well come at a high price See the Trump tariffs list by country Five things now pricier in Canada due to tariffs 'In business, indecision is killer' - Canadian firms seek certainty And while in the US consumer confidence is up and prices there have remained contained, it helps Canada's negotiating position if they can wait for Americans to start feeling the pain of tariffs. "It's Americans who are going to squawk," said Prof Hampson. Ms Fortin-Lefaivre predicts US businesses, especially smaller firms that don't have the same resources to withstand them, will be pressuring political leaders. "So that pressure could play to our advantage," she said. Canadians also appear willing to give the new prime minister some leeway. Opinion polls suggest they are generally satisfied with his handling of trade. Carney "understands that doing what's best for the economy right now is actually what's best for him politically", Martha Hall Findlay, director of the University of Calgary's School of Public Policy and a former Liberal MP, told the BBC. Trump has said he is imposing tariffs to boost domestic manufacturing, open overseas markets and raise money for the government. He is also using them to push countries like Canada on a range of non-trade issues, including military spending. In the last few weeks, Ottawa has significantly ramped up its defence spending, boosted security at the shared border and killed a digital tax opposed by American tech firms. Those moves show Canada is "doing what the Americans wanted us to do", said Ms Fortin-Lefaivre. She hopes Canadian negotiators are pushing for tariffs to be as low as possible, as well as working to ensure the two deeply integrated supply chains are able to continue working together. Canada is pressing for relief on the 50% steel and aluminium tariffs, which are squeezing US automakers. And on Thursday, Treasury Secretary Scott Bessent signalled in an interview with CNBC that is an option on the table. Trump meanwhile, has raised a number of longstanding trade irritants besides fentanyl, including Canada's protections around its dairy industry. Ottawa has previously warned of more countermeasures to come if talks collapse, though political appetite for that may be waning. Retaliatory tariffs "haven't seemed to have had the kind of impact that we would hope for", British Columbia Premier David Eby recently told Bloomberg. On retaliation, Prof Hampson said: "The Americans have escalation dominance here. So you want to be smart about it." A spokesperson for Carney declined to say whether more countermeasures remained on the table. Meanwhile, Canadian negotiators have been in Washington most of this week and keep pushing talks forward, with the minister responsible for Canada-US trade saying on Friday an acceptable agreement "was not yet in sight". "We all crave the certainty of a deal," said Ms Fortin-Lefaivre. But research by her business group suggests firms are making contingency plans. Almost 40% of goods exporters have already diversified suppliers outside the US, and 28% have diversified buyers. They are also looking ahead to what may be more challenging talks with CUSMA, which has proven a critical backstop, as it is up for review next year. It is all part of a wider push by the country to diversify trade away from the US, pull down barriers that have hindered trade between provinces, and press forward more quickly on major projects. The economic links between the two countries will stay strong - Canada will still be one of the largest trading partners and economic and security allies of the US. But the irony is that Trump's threats may be "forcing Canada to understand we have to get our own economic house in order," said Ms Hall Findlay. "It's going to take some really tough decisions. And I do think our current government gets this." Error in retrieving data Sign in to access your portfolio Error in retrieving data

Tariffs, Earnings and Other Can't Miss Items this Week
Tariffs, Earnings and Other Can't Miss Items this Week

Yahoo

time23 minutes ago

  • Yahoo

Tariffs, Earnings and Other Can't Miss Items this Week

Markets enter a critical week following Friday's dramatic selloff that delivered the worst one-day loss in months for major indexes, despite the Nasdaq and S&P 500 ($SPX) (SPY) hitting record highs Thursday. The market rally's sudden reversal came amid a disappointing July jobs report that revived Fed rate cut hopes while simultaneously raising concerns about economic momentum, compounded by rising core inflation readings. President Trump's implementation of new tariff rates for dozens of countries effective August 7 adds another layer of uncertainty, while his controversial firing of the Bureau of Labor Statistics head following the jobs report has raised questions about the integrity of future economic data. This week's economic calendar centers on Tuesday's ISM Services index, which economists expect to rise to 52.2 from 50.8, potentially signaling accelerating expansion in the economy's largest sector. Key earnings from Advanced Micro Devices (AMD), Disney (DIS), and other major companies will test whether corporate fundamentals can support recent market highs amid growing macro uncertainties. Here are 5 things to watch this week in the Market. More News from Barchart 3 Highly Shorted Stocks That Could Be the Next Wall Street Sensations The Saturday Spread: How to Use Descriptive Math to Play the Hand, Not the Dealer This Dividend King Just Issued a Tariff Warning. Is Its Reliable Yield Enough to Soften the Blow? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Services Sector Economic Pulse Tuesday's ISM Non-Manufacturing PMI at 10am takes center stage as the week's most important economic release, with economists forecasting a rise to 52.2 from June's 50.8 reading. This report will provide insights into the services sector, which comprises the largest portion of the U.S. economy, particularly important after Friday's weak jobs data raised questions about economic momentum. The services PMI's employment component will be closely watched for confirmation or contradiction of the disappointing payrolls report, while the prices paid index could offer additional inflation signals. Tuesday's earlier Services PMI reading at 9:45am will provide a preliminary gauge before the comprehensive ISM report. Given recent concerns about economic growth and the Fed's policy outlook, any significant deviation from expectations could trigger substantial market volatility. A strong reading might alleviate recession fears while potentially tempering rate cut expectations, whereas weakness could reinforce concerns about economic deceleration. Technology Earnings Under Pressure The semiconductor sector faces scrutiny with Advanced Micro Devices (AMD) reporting Tuesday amid ongoing questions about AI chip demand sustainability and data center spending patterns. AMD's results will be particularly important given recent volatility in chip stocks and investor concerns about inventory levels and demand visibility. The report comes as markets assess whether the AI infrastructure buildout can justify current valuations in the semiconductor space. Other notable technology earnings include Arista Networks (ANET) Tuesday, providing insights into networking equipment demand, and Airbnb (ABNB) Wednesday, offering perspective on travel and leisure spending trends. Palantir (PLTR) Monday will provide insights into enterprise software and government contract trends. Given the recent market selloff and concerns about stretched valuations in technology, these earnings results could significantly influence sector sentiment and broader market direction. Consumer and Industrial Bellwethers Wednesday delivers a trio of major consumer-facing earnings with Disney (DIS), McDonald's (MCD), and Uber (UBER) reporting results that will provide comprehensive insights into consumer spending patterns. Disney's results will offer perspective on streaming growth, theme park attendance, and content spending amid intensifying competition in entertainment. McDonald's will provide insights into quick-service restaurant trends and consumer price sensitivity, particularly important given ongoing inflation concerns. Uber's earnings will shed light on ride-sharing demand and food delivery trends, offering another angle on consumer behavior. Tuesday's Caterpillar (CAT) earnings will provide crucial insights into global industrial activity and infrastructure spending, while Pfizer (PFE) will offer perspective on pharmaceutical trends and healthcare spending. Tariff Implementation and Market Impact President Trump's implementation of new tariff rates for dozens of countries effective Wednesday, August 7, creates a significant market catalyst that could influence trading patterns throughout the week. The timing coincides with key earnings releases and economic data, potentially amplifying market reactions as investors assess the combined impact of trade policy changes and corporate fundamentals. Companies with significant international exposure, complex supply chains, or import dependencies could face renewed scrutiny during earnings calls as management teams address potential cost impacts and mitigation strategies. The tariff implementation follows Friday's market selloff, creating additional headwinds for risk assets and potentially influencing Fed policy considerations if trade restrictions contribute to inflation pressures. Sectors particularly vulnerable include retail, technology hardware, automotive, and industrial companies with global operations. Bond Market and Data Reliability Concerns Wednesday and Thursday's Treasury auctions—10-year notes Wednesday at 1pm and 30-year bonds Thursday at 1pm—will test investor appetite for government debt amid ongoing concerns about fiscal policy and inflation trends. The auctions come as markets grapple with mixed signals from recent economic data and uncertainty about Fed policy direction following Friday's disappointing jobs report. Thursday's initial jobless claims at 8:30am will provide another employment data point, though President Trump's firing of the Bureau of Labor Statistics head raises questions about data integrity and potential political interference in economic reporting. This controversy could influence how markets interpret future economic releases and complicate Fed policy decision-making. The bond auctions will be closely watched for signs of foreign demand and domestic investor appetite, particularly given ongoing concerns about government spending and debt levels. Best of luck this week and don't forget to check out my daily options article. On the date of publication, Gavin McMaster had a position in: SPY. All information and data in this article is solely for informational purposes. This article was originally published on Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data

Top Trump aide accuses India of financing Russia's war in Ukraine
Top Trump aide accuses India of financing Russia's war in Ukraine

USA Today

time24 minutes ago

  • USA Today

Top Trump aide accuses India of financing Russia's war in Ukraine

Stephen Miller on Fox News: Trump said, 'It is not acceptable for India to continue financing this war by purchasing the oil from Russia.' WASHINGTON – A top aide to President Donald Trump accused India of effectively financing Russia's war in Ukraine by purchasing oil from Moscow, after the U.S. leader escalated pressure on New Delhi to stop buying Russian oil, in a Fox News interview that aired on Aug. 3. More: President Trump announces 25% tariff on imports from India "What he (Trump) said very clearly is that it is not acceptable for India to continue financing this war by purchasing the oil from Russia," said Stephen Miller, deputy chief of staff at the White House and one of Trump's most influential aides. More: Russia does not care about Trump's 'theatrical ultimatum', senior official says Miller's criticism was among the strongest yet by the Trump administration about one of the United States' major partners in the Indo-Pacific. "People will be shocked to learn that India is basically tied with China in purchasing Russian oil. That's an astonishing fact," Miller said on Fox News' "Sunday Morning Futures." The Indian Embassy in Washington did not immediately respond to a request for comment. Indian government sources told Reuters on Aug. 2 that New Delhi will keep purchasing oil from Moscow despite U.S. threats. More: Trump says he ordered 2 nuclear subs to 'appropriate regions' after Russia nuclear threats A 25% tariff on Indian products went into effect on Aug. 1 as a result of its purchase of military equipment and energy from Russia. Trump has also threatened 100% tariffs on U.S. imports from countries that buy Russian oil unless Moscow reaches a major peace deal with Ukraine. Miller tempered his criticism by noting Trump's relationship with Indian Prime Minister Narendra Modi, which he described as "tremendous."

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store