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Fallout rises from McCarthy handshake deal with White House on December 11, 2023 at 11:00 am Business News | The Hill
Lawmakers in both parties are growing increasingly concerned about where a handshake deal between the White House and former Speaker Kevin McCarthy (R-Calif.) on spending stands as they negotiate how the government should be funded next year.
The Biden administration and House GOP leadership worked to pass legislation known as the Fiscal Responsibility Act (FRA) in late spring as part of a larger deal to suspend the debt ceiling and set budget caps for Congress to work from when it hashes out its full-year funding bills months later.
But now that Congress is trying to ramp up its annual appropriations work, critical components of that months-old deal that were not reflected in the law are in question as ultraconservatives, in pursuit of steeper cuts amid climbing debt, say Speaker Mike Johnson (R-La.) is not beholden to what Democrats say is the full commitment made by McCarthy.
“A deal is a deal is a deal,” Sen. Brian Schatz (D-Hawaii), who serves on the Senate Appropriations Committee, said this week. “I think there’s no way we’re going to get to an appropriations deal if people can’t hold to their commitments.”
In a letter to Republicans this week, Johnson said the FRA remains “the law of the land” that “provides the framework” for spending talks as both chambers work to reach a top-line agreement for fiscal 2024 funding.
On paper, lawmakers agreed to a base discretionary spending cap of $1.59 trillion, or about $886 billion for defense spending and almost $704 billion for nondefense spending, for fiscal 2024. However, the White House at the time detailed other changes to pad funding on the nondefense side, including rescinding billions of dollars in IRS funding with the purpose of reinvesting it in nondefense programs.
The IRS got $80 billion in additional funding last year, to be spent over the subsequent decade, in the Biden administration’s Inflation Reduction Act (IRA), much to the consternation of Republicans. As part of debt ceiling negotiations, the sides agreed that a quarter of the money could be repurposed in annual appropriations.
Ten billion dollars would be taken away from the IRS for fiscal 2024 and another $10 billion for fiscal 2025, to be added to nondefense discretionary funds, White House officials said earlier this year.
“We didn’t get into the individual line items in this bill,” Office of Management and Budget (OMB) Director Shalanda Young said in May. But she said lawmakers would “use IRS rescissions from the IRA on the mandatory side.”
“Again, we don’t dictate how,” she said, “but they will rescind $10 billion both years, and they will then use that to be reinvested into non-defense discretionary.”
The total $80 billion would have generated $200 billion in revenue over the 10-year budget window for a net deficit reduction of $120 billion, according to the Congressional Budget Office. Back-of-the-envelope math suggests the repurposed $20 billion will add $30 billion to the deficit, provided it’s not spent in revenue-generating programs.
White House officials also noted plans to repurpose other rescissions from clawed-back coronavirus relief dollars, which they acknowledged are pulled back in the law.
But as funding talks pick up between leadership in both chambers, the House Freedom Caucus is dialing up the heat on Johnson to hold the line, demanding in a Friday letter that any deal on a top-line level for government funding for fiscal 2024 “significantly reduce total programmatic spending year-over-year.”
The group also called on lawmakers to reject “side deals, gimmicks, or any other mechanism designed to hide the true number.”
“I think it’s very important that we hold to [$1.59 trillion], which was what the FRA agreed to,” Rep. Andrew Clyde (R-Ga.), a member of the House Freedom Caucus who is also an appropriator, said this week. “I mean, everybody voted for it. If we don’t do that, then I think that’s a problem.”
But Democrats and advocates are sounding alarm over the push.
Rep. Pramila Jayapal (D-Wash.), head of the Progressive Caucus, told The Hill this week that she’s “very” concerned about the potential cuts. “It has to be the whole deal.”
Sen. Jeanne Shaheen (D-N.H.) — whose subcommittee crafts the annual funding bill for the departments of Commerce, Justice and other agencies — also accused Republicans of “reneging,” adding the potential funding changes on the nondefense side make a difference for her subcommittee.
With the side deal included, Michael Linden, a former OMB official who was part of Biden’s negotiating team that hashed out the debt ceiling deal, argued the overall agreement would provide a “small increase” on the defense side and “flat-fund non-defense spending — which is a real cut, because costs go up every year.”
“That itself was a concession — a big concession — made in the service of avoiding exactly this kind of ridiculous back-and-forth, this procedural rigamarole, and just having Congress pass normal appropriations bills, which is what Republicans said they wanted,” he said in a Thursday interview.
Joel Friedman, senior vice president of federal fiscal policy at the Center on Budget and Policy Priorities, said the handshake agreement could fetch negotiators north of $60 billion in extra funding that could be redirected to the nondefense side.
“The only way you can get a freeze for nondefense is with the $69 billion in side deals,” he argued. “If you didn’t have that, it would have been a 9 percent in nondefense programs.”
“If it were a 9 percent cut, the White House wouldn’t have signed on. Senate Democrats and House Democrats wouldn’t have signed onto the deal. They wouldn’t have been able to reach agreement,” he said.
House, Appropriations, Business, News, Senate, Fiscal Responsibility Act, House Democrats, House GOP Lawmakers in both parties are growing increasingly concerned about where a handshake deal between the White House and former Speaker Kevin McCarthy (R-Calif.) on spending stands as they negotiate how the government should be funded next year. The Biden administration and House GOP leadership worked to pass legislation known as the Fiscal Responsibility Act (FRA)…
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The Cities Bracing for Trump’s Immigration Crackdown
In the wake of Donald Trump’s recent election victory and his promise of “the largest deportation operation in American history,” several major U.S. cities are bracing for potentially seismic shifts in their economic and social landscapes. As the nation grapples with the implications of this proposed policy, urban centers that have long been havens for immigrant communities find themselves at the epicenter of a looming storm.
Los Angeles, often dubbed the “City of Angels,” stands to lose more than its celestial nickname suggests. As a primary gateway for immigrants, the city’s vibrant tapestry of cultures and its economic engine could face significant disruption. From the bustling streets of Koreatown to the sun-drenched orchards of the Central Valley, the absence of undocumented workers could leave gaping holes in the city’s workforce and cultural identity.
Across the country, New York City, with its iconic skyline and melting pot reputation, faces its own reckoning. The Big Apple’s 5.9 million immigrants, many of whom are undocumented, form the backbone of industries ranging from construction to healthcare. The potential exodus could transform neighborhoods like Jackson Heights and Flushing, altering the very essence of what makes New York a global city.In the Sunshine State, Miami’s tropical allure belies the turbulent times ahead. Home to 2.5 million immigrants, the city’s economy relies heavily on sectors like tourism and hospitality – industries where undocumented workers often fill crucial roles. The potential deportation of these workers could send shockwaves through Miami’s economic ecosystem, from South Beach’s glitzy hotels to the agricultural heartlands of South Florida.
Chicago, the “City of Big Shoulders,” may find those shoulders significantly weakened. With 1.7 million immigrants in its metropolitan area, the Windy City’s diverse neighborhoods and industries face an uncertain future. From the meatpacking plants to the tech startups, Chicago’s economic resilience could be tested like never before.
In the Lone Star State, Houston and Dallas stand as twin testaments to the complexities of immigration policy. These Texas titans, each home to large immigrant populations, could see their booming economies stumble. The construction sites that dot their ever-expanding skylines and the service industries that keep these cities humming could face unprecedented labor shortages.
Out West, the San Francisco Bay Area’s reputation as a bastion of innovation and progress could be challenged. The region’s tech industry, often reliant on immigrant talent, might find itself grappling with a new reality. From Silicon Valley’s coding campuses to the agricultural expanses of the Central Valley, California’s economic powerhouse could face a reckoning. Phoenix, rising from the Sonoran Desert, could see its growth trajectory altered. As Arizona’s urban center, it stands at the forefront of the immigration debate, potentially facing not just economic impacts but social and political upheaval as well.
These cities, along with others like San Diego and Las Vegas, are not just facing potential economic disruptions. They are staring down the barrel of profound social change. Family separations, community fragmentation, and the erosion of cultural enclaves built over generations are all possible consequences of mass deportations. Moreover, the fiscal implications are staggering. Undocumented immigrants contribute billions in taxes annually, often without receiving the full benefits of their contributions. Their sudden absence could leave gaping holes in city budgets, potentially affecting public services and infrastructure projects.
As these urban centers brace for impact, the debate rages on. Supporters of stricter immigration policies argue for the need to enforce laws and protect American jobs. Critics warn of economic devastation and the unraveling of America’s urban fabric. What’s clear is that America’s cities stand at a crossroads. The coming months and years will likely reshape urban landscapes in ways both visible and invisible. From the foods we eat to the services we rely on, from the neighborhoods we call home to the very character of our cities, the impacts of this proposed immigration crackdown could be far-reaching and long-lasting. As the nation watches and waits, these cities – vibrant, diverse, and economically vital – find themselves on the front lines of a policy that could redefine what it means to be an American city in the 21st century.
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How Trump’s Deportation Plans Could Reshape Major Cities
In the wake of Donald Trump’s recent election victory, his ambitious plans for mass deportations have thrust America’s urban centers into the spotlight. As the nation grapples with the potential implications of what Trump calls “the largest deportation operation in American history,” cities across the country are bracing for significant changes that could reshape their economic, social, and cultural landscapes.
The stakes are particularly high for metropolitan areas like New York, Los Angeles, Houston, Dallas, and Miami, which host the largest populations of unauthorized immigrants. These cities, along with other major urban hubs such as Chicago, Washington D.C., and San Francisco, stand at the forefront of a looming transformation that could reverberate throughout the nation.
Economic Tremors
Economists warn that the proposed deportations could send shockwaves through urban economies. Mark Zandi, chief economist at Moody’s, cautions that businesses would face “significant challenges” if a substantial number of immigrants were removed. Industries such as construction, hospitality, and healthcare—pillars of urban economies—could face severe labor shortages.
Joe Brusuelas, chief economist at RSM, emphasizes the potential ripple effects: “The native-born workforce cannot meet current labor demands.” This labor gap could lead to increased wages, potentially rekindling inflation—a concern that looms large over city planners and policymakers alike.
Community Fabric Under Strain
Beyond economic considerations, the social fabric of cities hangs in the balance. Elena, a Nicaraguan immigrant in Houston, voices a fear echoed in immigrant communities across the nation: “I’m scared… This is my home.” The threat of family separations, particularly in mixed-status households, casts a long shadow over urban neighborhoods.
Immigrant advocacy groups like FIEL are mobilizing, advising clients to prepare for “anything that can happen.” This atmosphere of uncertainty could lead to decreased community engagement and cooperation with local authorities, potentially impacting public safety and community cohesion.
Cities at a Crossroads
As the debate intensifies, cities find themselves at a crossroads. Some, like New York and Los Angeles, have historically positioned themselves as “sanctuary cities,” often at odds with federal immigration enforcement. The impending clash between federal policy and local governance promises to be a defining feature of this new political landscape.
Meanwhile, the logistical challenges of implementing such a massive deportation operation remain daunting. Questions abound regarding detention facilities, transportation networks, and the sheer manpower required to carry out Trump’s vision.
Looking Ahead
As America’s urban centers brace for potential change, the full impact of Trump’s deportation plans remains to be seen. Legal challenges are all but certain, and the resilience of America’s cities will be put to the test.
What is clear is that the coming months and years will be pivotal for urban America. As Jason Miller, a senior Trump adviser, puts it, the plan is to “immediately reinstate” immigration policies from Trump’s first term. For America’s cities, this could mean a period of unprecedented change, challenge, and, potentially, transformation.
As the nation watches and waits, the story of America’s cities in the face of this ambitious deportation plan is just beginning to unfold. The outcome will undoubtedly shape the future of urban life in America for years to come.
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Donald Trump Wins 2024 USA Election
Based on the election results, Donald Trump has indeed won the 2024 U.S. presidential election, defeating Vice President Kamala Harris. Here’s an analysis of the key statistics and implications:
Electoral College Victory
Donald Trump has secured the presidency by winning crucial battleground states and flipping some key states that were previously held by Democrats. The final Electoral College tally is still being determined, but Trump has surpassed the 270 electoral votes needed to win.
Battleground State Performance
Trump’s victory was largely secured by winning several critical swing states:
- Wisconsin: Trump’s win here was pivotal in securing his path to victory.
- Pennsylvania: This state flipped back to Republican control.
- Georgia: Another key state that Trump managed to win back.
- Michigan: Trump successfully flipped this traditionally Democratic stronghold.
Popular Vote and Voter Priorities
While the final popular vote tally is still being calculated, exit polls provide insight into voter priorities:
- Economy and democracy were top concerns for voters.
- Abortion and immigration also played significant roles in voter decision-making.
Congressional Control
The election results extend beyond the presidency:
- Republicans are set to take back the Senate majority, securing at least 51 seats.
- Control of the House of Representatives remains undetermined.
Media Implications
The outcome of this election could be seen as a challenge to mainstream media narratives for several reasons:
- Polling Discrepancies: Many pre-election polls suggested a tight race or even a slight Harris advantage in key states. Trump’s victory, particularly in battleground states, may indicate that polls underestimated his support.
- Narrative Shifts: Throughout the campaign, much of the mainstream media focused on Trump’s legal challenges and controversies. His victory suggests that these issues may not have resonated with voters as much as economic and policy concerns.
- Voter Priorities: The emphasis on issues like the economy and immigration in voter decision-making may indicate a disconnect between media focus and voter concerns.
- Electoral Predictions: Many mainstream outlets were cautious about predicting a Trump victory, even as results began to favor him. This hesitancy could be seen as a reflection of broader media skepticism about Trump’s chances.
- Underestimation of Trump’s Base: The results suggest that Trump’s core support remained strong and potentially grew, despite negative coverage in much of the mainstream media.
It’s important to note that while the election outcome may challenge some media narratives, it doesn’t necessarily invalidate all mainstream reporting. The complex factors influencing voter behavior and the challenges of accurate political forecasting remain subjects of ongoing analysis and debate.
As the dust settles on this historic election, both the media and political analysts will likely engage in extensive reflection on the factors that led to Trump’s victory and the implications for future political coverage and analysis.
Bolanle Media is excited to announce our partnership with The Newbie Film Academy to offer comprehensive courses designed specifically for aspiring screenwriters. Whether you’re just starting out or looking to enhance your skills, our resources will provide you with the tools and knowledge needed to succeed in the competitive world of screenwriting. Join us today to unlock your creative potential and take your first steps toward crafting compelling stories that resonate with audiences. Let’s turn your ideas into impactful scripts together!
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