US Senate pushes toward aid, public broadcasting cuts sought by Trump
WASHINGTON - The U.S. Senate on Wednesday moved toward approval of President Donald Trump's plan for billions of dollars in cuts to funding for foreign aid and public broadcasting, which would hand Trump another victory as he exerts control over Congress.
The Senate was due to debate amendments to the rescissions package, Trump's request to cut spending previously approved by Congress. Vice President JD Vance was needed to break 50-50 ties over two procedural hurdles on Tuesday, when three Republicans joined all Democrats in voting against the measure.
More Republicans had objected to Trump's plan to slash life-saving global health programs. But they moved into the "yes" column after Russell Vought, director of the Office of Management and Budget, said on Tuesday that PEPFAR, a global program to fight HIV/AIDS launched in 2003 by then-President George W. Bush, was being exempted.
The change brought the size of the package of cuts to $9 billion from $9.4 billion.
Congress has until Friday to pass the rescissions. Otherwise, the request would expire and the White House will be required to adhere to spending plans passed by Congress.
Republican Senators Lisa Murkowski of Alaska, Mitch McConnell of Kentucky and Susan Collins of Maine voted against moving the legislation closer to passage.
"You don't need to gut the entire Corporation for Public Broadcasting," Murkowski said in a Senate speech.
She said the Trump administration also had not provided assurances that battles against diseases such as malaria and polio worldwide would be maintained. Most of all, Murkowski said, Congress must assert its role in deciding how federal funds were spent.
Republican Senate Majority Leader John Thune of South Dakota, called Trump's request a "small, but important step toward fiscal sanity."
The PEPFAR change in the Senate version of the legislation means it must go back to the House of Representatives for a vote before it can be sent to the White House for Trump's signature.
DOGE CUTS
The amounts at stake are extremely small in the context of the $6.8 trillion federal budget. They also represent only a tiny portion of all of the funds approved by Congress that the Trump administration has held up as it has pursued sweeping cuts, including those ordered by billionaire Elon Musk's Department of Government Efficiency, or DOGE.
As of mid-June, Trump was blocking $425 billion, according to Democratic lawmakers tracking frozen funding.
"Today, Senate Republicans turn this chamber into a subservient rubberstamp for the executive, at the behest of Donald Trump," Senate Democratic Leader Chuck Schumer of New York said.
"Republicans embrace the credo of cut, cut, cut now, and ask questions later," Schumer said.
The foreign aid initiatives in Trump's request for cuts included lifesaving support for women and children's health and vaccination programs that have long had strong bipartisan support. PEPFAR alone is credited with saving 26 million lives.
The package also cuts funds supporting public broadcasting, which can be the main source of emergency information in rural areas. Senator Mike Rounds, a South Dakota Republican, was concerned about funding cuts to Native American radio stations, but said he would support the rescissions after the administration promised to fund some tribal broadcasters separately.
Standalone rescissions packages have not passed in decades, with lawmakers reluctant to cede their constitutionally mandated control of spending. But Trump's Republicans, who hold narrow majorities in the Senate and House, have backed all of his policies since he began his second term in January.
The House passed the rescissions legislation without altering Trump's request by 214-212 last month. Four Republicans joined 208 Democrats in voting no. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
an hour ago
- Straits Times
Trump wants lower rates. Firing Powell could push them higher.
WASHINGTON - President Donald Trump wants the Federal Reserve to lower interest rates. Firing Mr Jerome Powell, the Fed chair, could have precisely the opposite effect, pushing up costs for homebuyers, businesses and other borrowers. Mr Trump in recent days has intensified his long-running attacks on Mr Powell, whom he has criticised for holding interest rates at a relatively high level even as inflation has cooled and economic growth has slowed. On July 15, the president asked a group of House Republicans whether he should fire Mr Powell, and showed off a draft of a letter that would do so. Asked on July 16 whether he intended to fire Mr Powell, Mr Trump said he had no immediate plans for a removal, though he refused to rule it out. If he took such a step, it is unclear whether he would succeed. Mr Powell has indicated his intention to serve out his term as chair, and many legal experts say the law is on his side. Even if Mr Trump did manage to oust Mr Powell, the move might prove counterproductive. A new chair might be able to persuade enough other Fed officials to lower the short-term interest rates that the central bank directly controls. But the rates that matter to most borrowers are long-term rates, particularly those on 10-year and 30-year federal government bonds, which are the basis for what borrowers pay for mortgages, auto loans and lines of credit for most businesses. The Fed's decisions influence those rates, but it is investors, through their buying and selling of government bonds, who set them directly. Firing the Fed chair – and, in so doing, undermining the central bank's long-standing independence – could send them soaring, economists warn. 'If my sole objective were lowering borrowing costs, this would not be the way I would go about it,' said Mr Glenn Hubbard, a Columbia University economist who served as an adviser to President George W. Bush. 'It's not going to work.' Sure enough, yields on federal bonds – which reflect the interest rates that investors demand to lend the government money – rose sharply on July 18 after news about Mr Trump's threats broke. They moderated after the president suggested a decision wasn't imminent. Top stories Swipe. Select. Stay informed. Singapore Priority for singles, higher quota for second-timer families to kick in from HDB's July BTO exercise Singapore Witness stand not arena for humiliation in sex offence cases, judge reminds lawyers Asia Japan PM's future in doubt after election debacle Business Bigger, quieter, greener: High-volume low-speed fans see rising demand in warming Singapore Singapore New home owners in Singapore find kampung spirit on BTO Telegram groups Singapore What would it take for S'pore to shed the dirty image of its blue recycling bins? Business DBS hits record high above $47; CDL up after director Philip Yeo announces resignation World Gaza civil defence says Israeli fire kills 93 aid seekers Firing Mr Powell could push up long-term interest rates for two reasons. The first is inflation: If Mr Trump moves to take more direct control of the Fed's policy decisions, bond investors may expect more inflation in the years ahead and, as a result, demand higher interest rates. The Fed, like central banks in most advanced economies, is meant to be insulated from political influence in order to give policymakers the freedom to fight inflation even if doing so is painful in the short term. That is what Mr Powell did during the Biden administration as prices spiked. The Fed raised interest rates to their highest level in decades in order to bring inflation under control, even as forecasters predicted – wrongly, it turned out – that doing so would cause a recession. 'The Fed's credibility and independence was critical in getting Covid-19 inflation back down quickly,' said Mr Joseph E. Gagnon, a former Fed economist who is now at the Peterson Institute for International Economics. If Mr Trump undermines that independence, investors may lose confidence in the Fed's willingness to take unpopular positions – like keeping interest rates high to stamp out price gains. That could lead investors to expect inflation to be higher on average than it has been in recent decades. The second reason that firing Mr Powell could backfire has to do with the US government's debt. Mr Trump has said in recent weeks that, by keeping rates high, Fed policymakers are costing taxpayers 'trillions of dollars in interest cost.' That's because the central bank influences – albeit indirectly – how much interest the government owes on its nearly US$30 trillion in debt. Such comments imply that Mr Trump sees it as the Fed's job to help the government pay its debts, rather than as the job of Congress and the president to set tax and spending policy in a responsible manner. That could encourage even more borrowing when most economists already believe the United States is on an unsustainable fiscal path, in part because of the enormous tax-and-spending bill that Mr Trump signed into law this month. 'Lowering interest rates so there's less debt and more ability to do things like tax cuts is an extremely dangerous and scary goal for a central bank to have,' said Mr Jason Furman, a Harvard economist and former adviser to President Barack Obama. 'Every central bank that has embarked on that path, it's ended very, very badly.' If investors lose faith in the government's ability to make good on its obligations, they could demand a higher rate of return to compensate them for that risk, said Ms Tara Sinclair, an economist at George Washington University who studies the Fed. 'This idea that debt service is going to be somehow lowered by a more politically intervened Fed is exactly wrong,' she said. She noted that, even before last week, bond yields had been rising in ways that suggested mounting concerns from investors. Mr Powell's term as chair expires in May, so Mr Trump will soon have an opportunity to appoint a new top policymaker even if he does not follow through on his recent threats. The president, who has indicated in recent weeks that he will select someone who promises to cut interest rates, is sure to apply pressure to ensure his pick follows through. NYTIMES
Straits Times
an hour ago
- Straits Times
Trump threatens Washington stadium deal unless NFL team re-adopt Redskins name
A view of the defunct Robert F. Kennedy Stadium in Washington, DC, on April 28. The Washington Commanders NFL team and the city announced an agreement to build a new stadium at the site where the team formerly played from 1961 to 1996. The team currently play at Northwest Stadium in Landover, Maryland. US President Donald Trump on July 20 threatened to interfere with a deal to build a new football stadium in Washington, DC, unless the local National Football League team, now known as the Commanders, changes their name back to Redskins. The American football team dropped the name Redskins in 2020 after decades of criticism that it was a racial slur with links to the US genocide of the indigenous population. Mr Trump had called for a return to the name Redskins - and for the Cleveland Guardians baseball team to once again adopt the name Indians - on other occasions, but on July 20, he added that he may take official action. 'I may put a restriction on them that if they don't change the name back to the original 'Washington Redskins,' and get rid of the ridiculous moniker, 'Washington Commanders,' I won't make a deal for them to build a Stadium in Washington,' he said in a post on his Truth Social platform. The team moved from Washington to suburban Landover, Maryland, in 1997, but earlier this year reached an agreement with the local District of Columbia (DC) government to return to the city with a new stadium expected to open in 2030. Mr Trump has limited authority to intervene under the current home-rule law governing federal oversight of the District of Columbia, but he has raised the prospect of taking more control, telling reporters in February, 'I think we should take over Washington, DC'. Representatives of the Commanders did not immediately respond to a request for comment. Top stories Swipe. Select. Stay informed. Singapore Priority for singles, higher quota for second-timer families to kick in from HDB's July BTO exercise Singapore Witness stand not arena for humiliation in sex offence cases, judge reminds lawyers Asia Japan PM's future in doubt after election debacle Business Bigger, quieter, greener: High-volume low-speed fans see rising demand in warming Singapore Singapore New home owners in Singapore find kampung spirit on BTO Telegram groups Singapore What would it take for S'pore to shed the dirty image of its blue recycling bins? Business DBS hits record high above $47; CDL up after director Philip Yeo announces resignation World Gaza civil defence says Israeli fire kills 93 aid seekers Some fans have advocated readopting the name Redskins out of tradition, but leading indigenous rights organisations have opposed the name, including the National Congress of American Indians, the Association on American Indian Affairs, and Cultural Survival. At least one group, the Native American Guardian's Association, has supported the name Redskins and the 'respectful use of Native American names and imagery in sports, education and public life'. REUTERS
Business Times
an hour ago
- Business Times
Polls show falling US support for Trump's deportations
[WASHINGTON] Polls released on Sunday showed falling support among Americans for Donald Trump's hardline measures against illegal immigration, as the Republican president celebrated six months back in power. Trump won last year's election in part with promises to launch a historic deportation drive, riling up his base with exaggerated claims of mass violence committed by undocumented migrants, whom he referred to as 'savages' and 'animals.' Polls from both CNN and CBS show that Trump has lost majority support for his deportation approach. Fifty-five per cent of respondents feel the raids - frequently seen online in viral videos of masked, unidentified agents seizing people off the street - have gone too far, CNN said. This was up 10 per cent from a similar poll in February, shortly after Trump took office. A majority - 57 per cent - said they oppose plans for construction of mass detention facilities, with only 26 per cent supporting the idea, CNN said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up A CBS News poll found that 56 per cent of Americans believe Trump's administration is targeting migrants who do not represent a threat to public safety, up from 47 per cent last month. According to the poll, only 49 per cent of Americans approve of Trump's immigration policies, down from 54 per cent last month and 59 per cent in February. Support remains nearly universal among Republicans, however, with 91 per cent in favor of the deportations. Opposition among independents is nonetheless at 59 per cent and among Democrats at 86 per cent. Trump marked the six-month mark of his second presidency by heading out to his golf club in Virginia, near Washington, and posting on social media that the period was 'being hailed as one of the most consequential periods of any President.' 'Six months is not a long time to have totally revived a major Country,' he wrote on Truth Social. 'One year ago our Country was DEAD, with almost no hope of revival,' he said, adding that now the United States was the 'most respected Country anywhere in the World.' In keeping with other surveys, the CBS News poll found Trump's overall approval rating is underwater. Currently only 42 per cent of Americans approve of his job, compared to 53 per cent in February. AFP
