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      Trump’s tariffs will be paid by the poor – while his tax cuts help the rich | Robert Reich

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      Donald Trump apparently believes his tariffs will bring so much money to the US treasury that the US will be able to afford another giant Trump tax cut.But Trump’s tariffs – and the retaliatory tariffs already being imposed on American exports by the nation’s trading partners – will be paid largely by the American working class and poor.And the people who will benefit most from another giant Trump tax cut are America’s wealthy.It will be a giant upward transfer of wealth.Trump has made astronomical estimates about how much money tariffs can raise.“We will take in trillions and trillions of dollars and create jobs like we have never seen before,” he said during his recent joint address to Congress. “Tariffs are about making America rich again and making America great again.”Last Sunday on Air Force One, Trump was even more ebullient. “We’re going to become so rich you’re not going to know where to spend all that money,” he said.The Committee for a Responsible Federal Budget estimates that if Trump’s already-announced tariffs on China, Mexico and Canada went into effect, they would bring about $120bn a year into the US treasury, and $1.3tn over the course of 10 years.Among Trump’s first actions at the outset of his second term was to order the treasury to establish an “External Revenue Service” to collect tariff revenue that would enable the US to pay down its debt and reduce taxes.Howard Lutnick, Trump’s secretary of commerce, said on Fox News in late February that the goal of the External Revenue Service “is very simple: to abolish the Internal Revenue Service and let all the outsiders pay”.In other words: the US will raise so much money from Trump’s tariffs that Americans will no longer need to pay income taxes.The first problem with this is mathematical. America raises about $3tn each year from income taxes. The nation also imports about $3tn worth of goods each year.So to replace income taxes, tariffs would have to be at least 100% on all imported goods. Also, Americans would have to continue to import $3tn worth of goods every year. Neither of these is remotely plausible.The second problem is who pays.Trump keeps saying other countries pay for tariffs. That’s not how they work.Tariffs are in effect taxes on imported products. They’re paid by Americans.Say there’s a 60% tariff on Chinese imports. When Walmart imports Mr Coffee machines from China (where they’re made), China doesn’t pay the 60% tariff to the US government. Walmart does.If Walmart had bought the coffee machine for $20 before the tariff, the 60% tariff requires Walmart to pay an extra $12 – bringing the total cost of each coffee machine to $32.Walmart doesn’t want that extra $12 to cut into its profit margin, so it will try not to absorb that cost. Instead, it will pass the extra $12 on to its customers.Walmart’s CEO has already said it expects to raise prices in response to Trump’s tariffs in order to protect its profits.Now, targeted tariffs can be used to protect industries critical to national security.This is what the Biden administration did when it levied tariffs on Chinese electric vehicles, solar panels, computer chips and batteries after making massive domestic investments in these technologies.But Trump has proposed across-the-board tariffs on almost all imports – particularly from America’s largest trading partners.While Americans will pay more for imported goods due to tariffs, countries that export the products to America are also harmed because Americans presumably will buy fewer of their coffee makers and anything else they sell in the United States that now costs more. These countries are retaliating by raising tariffs on American exports.On Monday, China began imposing tariffs on a range of American farm products, including a 15% levy on chicken, wheat and corn.These retaliatory tariffs will hurt America’s farm belt – mostly Republican states and Trump voters.On Wednesday, after Trump imposed a 25% tariff on all aluminum and steel imports coming into the United States from the rest of the world, the European Union announced retaliatory tariffs on about $28bn worth of American exports, including beef and whiskey.Not incidentally, Europe’s retaliatory tariffs are on goods mostly produced by Republican states (think Kentucky bourbon). Europe is also slapping tariffs on Harley-Davidson motorcycles, made in America’s rust belt.On Thursday, in response to Europe’s tariffs, Trump threatened a 200% tariff on all alcoholic products from EU member states. If he follows through, Trump voters will be paying more for much of the alcohol they consume.Canada also announced new tariffs on about $21bn worth of US products.This is called a trade war. There are no winners in such a war.One of the biggest global trade wars started with the Smoot-Hawley Tariff Act in 1930. After the 1929 stock market crash, President Herbert Hoover and Republicans thought sweeping tariffs would help the economy.They didn’t. Import prices surged, and exports plummeted because of other nations’ retaliatory tariffs. Global trade fell by 66%, worsening the Great Depression.Smoot-Hawley seemed to prove that across-the-board tariffs don’t work. Then came Trump’s first term and his sweeping tariffs, largely on China.Higher prices from Trump’s first-term tariffs on thousands of Chinese imports are estimated to have cost American families close to $80bn.This cost took a larger chunk out of the incomes of poorer families than richer ones.If you make $50,000 a year, the cost of a coffee maker that rises due to tariffs affects you more than it does someone making $1m a year who can better afford the price increase.To put it another way, tariffs are a highly regressive tax.Following Trump’s first-term tariffs on China, Beijing retaliated with its own tariffs on American exports. This led China to import less from America.In the US agriculture industry alone, the result was a $27bn loss in exports from mid-2018 to the end of 2019. Even though the government increased aid to affected farmers, farm bankruptcies shot up 20%.Another consequence of Trump’s first-term trade war was that American manufacturing shrank, as demand for exports slumped and as raw materials used in manufacturing became more expensive.One study estimates that Trump’s first-term trade war cost nearly 300,000 American jobs.Instead of learning a lesson from this fiasco, Trump is now promising even bigger tariffs – more tariff hikes on China and, starting on 2 April, 25% tariffs on imports from Canada and Mexico.These new tariffs would cost the typical American household an additional $1,200 this year. If Trump makes good on previous pledges to slap more tariffs on imports from around the world in addition to aluminum and steel, American families can expect to spend as much as $4,000 more.Trump says he’ll use the revenue from tariffs to “offset” more of his big pending tax cut.That tax cut will disproportionately benefit wealthy Americans and big corporations, as did Trump’s first-term tax cut. But revenue raised from tariffs will be coming disproportionately from average working people.Hence, it will be a massive transfer of wealth from most Americans to the super wealthy and giant corporations.Will most Americans know that the higher prices they’ll pay for groceries, gas, housing and all sorts of other things will be going into the pockets of the wealthy? Will they know whom to blame?Trump was able to fool most Americans during his first term into believing he had created a marvelous economy for them and that they benefited from his tariffs and tax cuts.It was a lie, of course. But he tells lots of lies that many Americans believe. Will he be able to do it again, on a much larger scale?

      Robert Reich, a former US secretary of labor, is a professor of public policy emeritus at the University of California, Berkeley. He is a Guardian US columnist. His newsletter is at robertreich.substack.com More

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      Notable Tesla investor says he hopes Musk’s government role is ‘short-lived’

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      A devoted investor in Elon Musk’s Tesla – and once a close childhood friend of the US president’s eldest son and namesake – says he hopes the world’s richest man’s role in cutting federal spending for Donald Trump’s administration is “short-lived” and that he returns to managing his businesses.Investment manager Christopher Tsai, whose firm has tens of millions of dollars tied up in Tesla, said the stock market had demonstrated clear signs of displeasure with Musk’s activities at the so-called department of government efficiency. And, in an interview with the Guardian, Tsai said: “I hope his involvement with [Doge] is short-lived so he can spend even more time on his businesses.”The chief investment officer and president of Tsai Capital, which reportedly manages a portfolio of about $137m, made it a point to say that his stated hope does not constitute a loss of faith in Musk or his company’s earning potential, despite opinion polls establishing the Tesla boss’s unpopularity with the American public and his net worth evidently tumbling about $23bn in recent days.Tsai said the stock markets also reacted negatively when Musk bought Twitter, the social media platform now known as X, in 2022 for $44bn. Yet he said Tsai Capital – which holds about 75,000 shares in Tesla as of its most recent quarterly filings – had made more than six times its money since first investing in the company in February 2020, even with the downturn in performance of late.Tsai recently told his investors in a letter that his firm considers Tesla to be more of a creator of advanced electronics and software that it attaches to cars rather than a traditional automotive manufacturer and he insisted that the EV maker remained “on a path to become one of the most valuable companies on the planet”.Nonetheless, he said “the market … reacting unfavorably to Elon Musk’s recent involvement in politics” was real. And though he said he thought Musk’s self-professed belief that government reforms are needed is genuine, Tsai expressed a hope that the Tesla boss’s role in Doge ultimately proved to be like other temporary commitments he had previously taken on.Tsai’s comments on what is his firm’s largest holding come at a time when Musk – who prominently supported Trump’s successful run for a second presidency – has advised the White House on the widespread firings of government employees and the dismantling of various services. Those services include US humanitarian aid and development work, with experts warning that their elimination could have life-threatening consequences.If a CNN poll conducted by the research firm SSRS is any indication, such measures have not gone over well with the public. The survey showed 53% of Americans disapproved of Musk, and 35% approved – leaving him about 18 points underwater.Those results were released on Wednesday, two days after Tesla’s stock fell more than 15% amid public protests against the company and vandalism reported at some of the brand’s dealerships.Tsai’s descent from a lineage of legendary investors sets his voice apart from some of the others who have weighed in on Musk, Doge and Tesla at the two-month mark of the second Trump presidency.His paternal grandmother was Ruth Tsai, who became the first woman to trade on the floor of the stock exchange in Shanghai, China, in 1939 during the second world war. Her earnings helped her send her son – Tsai’s late father, Gerald – to college in the US, where he ultimately settled and made a name for himself as a financier and fund manager.Gerald Tsai Jr also eventually became the chief executive officer of the financial services giant Primerica, which – along with its subsidiary Commercial Credit Group – helped build Citigroup, as the New York Times has reported.A notable aspect of Tsai’s trajectory was his father’s acquaintance with Trump when the latter was primarily a real estate mogul in Manhattan. The families were close enough that, in his youth, Tsai considered Donald Trump Jr his best friend, vacationing with him and once going to a baseball game with his siblings, their mother and their father.Tsai said the younger Trump was one of the first people to whom he came out as a gay man, doing so before he did to Gerald. “That’s cool,” Tsai recalled Trump Jr telling him, while he said Gerald took a longer time to accept it.A registered Democrat, Tsai said he had not had “a meaningful conversation with any member of” the president’s family since a lunch with Donald Jr in January 2014 – more than two years before Trump Sr clinched the Republican White House nomination and won his first presidency. Tsai said they just “went in different directions” as the Trumps moved into politics, and their family patriarch aligned himself closely with Musk as he clinched the White House a second time in November’s election.Meanwhile, the elder Tsai, who married and divorced four times and once survived crashing in a helicopter into New York’s Hudson River before his death in 2008, did not pass on much of his larger-than-life personality to Christopher.The younger Tsai for instance has been married to his spouse – with whom he is raising teenaged twins – since 2005.But, as Christopher put it, Gerald Tsai Jr did teach him to learn about – and love – trading stocks in his childhood. He began investing at 12 and started his capital firm in 1997 at age 22.Tsai said some of the principles to which he adheres – whether as a philanthropic donor to artistic as well as environmental causes – were inherited from the first Chinese American to be CEO of a Dow Jones Industrial company.“My father would say you have to do deep work in order to figure out where value is and to uncover great situations,” Tsai said. “Our job as investors is to figure out what’s real, what’s not real, what that’s worth, what’s priced into the stock and where the company’s valuation is going.” More

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      Republican Russophilia: how Trump Putin-ised a party of cold war hawks

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      In speech that ran for 100 minutes there was one moment when Donald Trump drew more applause from Democrats than Republicans. As the president told Congress last week how the US had sent billions of dollars in military aid to Ukraine, his political opponents clapped and unfurled a Ukrainian flag – while his own party sat in stony silence.It was a telling insight into Republicans’ transformation, in the space of a generation, from a party of cold war hawks to one of “America first” isolationists. Where Trump has led, many Republicans have obediently followed, all the way into the embrace of the Russian president, Vladimir Putin – with huge implications for the global democratic order.“The reversal is dramatic and the willingness of the Republican party to go along with it continues to be breathtaking,” said Charlie Sykes, a political commentator and author of How the Right Lost Its Mind. “At least for a while it appeared that Republicans were still going to be supportive of Ukraine. But now that Trump has completely reversed our foreign policy there seems to be very little pushback.”Last month, Trump set up a peace process that began with the US and Russia’s top diplomats meeting in Saudi Arabia – with no seat at the table for Ukrainian officials. He branded Ukraine’s president, Volodymyr Zelenskyy, a “dictator”, a term he has never applied to the authoritarian Putin.Along with Vice-President JD Vance, he berated Zelenskyy in the Oval Office, a spectacle that prompted the Democratic senator Elissa Slotkin to observe that Ronald Reagan, a Republican president who was an inveterate foe of Soviet aggression, “must be rolling over in his grave”. Trump suspended offensive cyber operations against Russia and paused military aid and intelligence sharing with Ukraine until it agreed to a 30-day ceasefire.The Oval Office shakedown shocked the world but there was strikingly little criticism from Republicans. The secretary of state, Marco Rubio, sank into a couch and said nothing as the shouting raged around him. Senator Lindsey Graham of South Carolina, who had previously been supportive of Zelenskyy, even suggested that the Ukrainian president should resign.Speaking at a Center for American Progress thinktank event in Washington this week, Patrick Gaspard, a former Obama administration official, said: “What you fundamentally believe matters little if you’re acting against those beliefs.“It was astonishing to see Republican leaders who on a Monday were praising Zelenskyy and by the Tuesday were removing any reference to him from their websites. It’s an extraordinary thing to see people who used to be pretty serious on this issue, like Lindsey Graham, suddenly saying the things.”Meanwhile, other Russia hawks such as the former vice-president Mike Pence, Liz Cheney and Adam Kinzinger have been sidelined. Republicans who were not shy about countering Trump’s foreign policy ideas during his first term are now standing by him – in public at least.Max Boot, a senior fellow at the Council on Foreign Relations thinktank and author of Reagan: His Life and Legend, said: “Absent Trump, I don’t think you would see this reorientation of the Republican party. Even with Trump a lot of Republicans, especially on Capitol Hill, are very uneasy about it and don’t like what Trump is doing but they’re afraid to speak out.”View image in fullscreenOthers suggest that loyalty to or fear of Trump may not be the only explanation. Younger Republicans are questioning the legitimacy of institutions such as Nato and the United Nations and following far-right influencers such as Tucker Carlson, who interviewed Putin in Russia last year and claimed that Moscow was “so much nicer than any city in my country”.Critics say Trump, Carlson and the “Make America great again” movement see in Russia an idealised version of white Christian nationalism, in contrast to the “woke” values of western Europe. Putin has mocked the US embassy for flying a rainbow flag and suggested that transgenderism is “on the verge of a crime against humanity”.From this perspective, the struggle is no longer capitalism against communism but rather woke against unwoke. In various speeches Putin has railed against the west’s “obsessive emphasis on race”, “modern cancel culture” and “reverse racism”. He said of the west: “They invented five or six genders: transformers, trans – you see, I do not even understand what it is.”All are familiar talking points from the Maga playbook. Indeed, last year, on the rightwing strategist Steven Bannon’s War Room podcast, the Republican congresswoman Marjorie Taylor Greene said: “Let’s talk about what this really is, Steve: this is a war against Christianity. The Ukrainian government is attacking Christians; the Ukrainian government is executing priests. Russia is not doing that; they’re not attacking Christianity. As a matter of fact, they seem to be protecting it.”Bannon has made no secret of his desire to bring down the European Union and “globalist” forces. Joel Rubin, a former deputy assistant secretary of state under Barack Obama, draws a comparison with conservative “red” states and liberal “blue” states within the US. “Let’s make it real American tangible,” he said. “Russia is a red state and France and England and Nato – they’re blue states.”During the cold war, it was hardline anti-communism that was core to the Republican brand. Reagan branded the Soviet Union as the “evil empire” and stepped up US military spending. But when Mikhail Gorbachev came to power in the Soviet Union in 1985, relations improved.Reagan and Gorbachev held several summits that led to key arms control agreements. Reagan’s successor, George HW Bush, worked closely with Gorbachev and, later, Boris Yeltsin as the Soviet Union dissolved in 1991, encouraging a transition to democracy and capitalism.View image in fullscreenEarly in Republican George W Bush’s presidency, he had a relatively positive relationship with Putin, memorably saying he had “looked into Putin’s soul” and found him trustworthy. The two cooperated on counter-terrorism following the 9/11 attacks but tensions grew over the Iraq war and US support for Georgia and Ukraine.By 2008, when Russia invaded Georgia, relations had significantly deteriorated. Obama, a Democrat, initially pursued a “reset” policy with Russia, aiming to improve relations, but tensions resurfaced after Russia annexed Crimea in 2014 and supported separatists in eastern Ukraine. In response, Obama imposed sanctions on Russia and expelled diplomats.Russia launched an aggressive effort to interfere in the 2016 presidential election on Trump’s behalf, according to a later Senate intelligence committee report, which found extensive evidence of contacts between the Trump campaign advisers and Kremlin officials and other Russians.Trump vehemently denied collusion even as his administration imposed sanctions on Russia. At a joint press conference in Helsinki in 2018, Trump sided with the Russian president over his own intelligence agencies. He has remained unwilling to criticise Putin, even after Russia invaded Ukraine and after the opposition activist Alexei Navalny died in prison.The Putin-isation of the Republican party should perhaps not be overstated. Older senators such as Mitch McConnell, who is retiring at the next election, Thom Tillis and Roger Wicker remain staunchly supportive of Ukraine.Henry Olsen, a senior fellow at the Ethics and Public Policy Center thinktank in Washington, said: “I push back against the idea that Republicans have become entranced with Putin because there’s not evidence for that. There is evidence that Republicans have become tired of the fight in Ukraine. These things are not the same.”However, the balance appears to be shifting as the cold war fades into memory. About 41% of Republicans view Russia as either “friendly” or an “ally”, according to a CBS News/YouGov poll released earlier this month. And just 27% of Republicans agree with the statement that Trump is too close to Moscow, according to a Reuters/Ipsos survey.View image in fullscreenAdam Smith, the top Democrat on the House of Representatives’ armed services committee, told the Guardian of the “Make American great again” movement: “They have definitely shown a sympathy for Vladimir Putin’s autocratic, ‘traditional’ values, which are very troubling if you care about the problems of bigotry and discrimination. There is growing sympathy and the wing of the Republican party that’s against that is getting weaker while the other wing is getting stronger.”He added: “They believe that they’re going to promote ‘traditional values’ and they see Putin as an ideological ally in that. I still think it is a minority within the Republican party but Trump’s the president. He’s the leader of that party and they’re adhering to him. Trump has an enormous amount of sympathy for that worldview and more and more of them are drifting in that direction.”Bill Galston, a former policy adviser to Bill Clinton, said: “The Republican party during the cold war was anti-communist and from their standpoint, once communism disappeared, their major motive for opposing Russia did as well.“The fact that Russia is a rightwing autocracy doesn’t particularly trouble them. To the extent that Putin has refashioned himself as a traditionalist culture warrior, he’s actually making an affirmative appeal to what the Republican party has become.” More

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      Trump administration briefing: Democrats divided as funding bill passes; president rails against justice department

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      The US Senate averted a government shutdown just hours before a Friday night deadline after 10 Senate Democrats joined nearly all Republicans to clear a key hurdle that advanced the six-month stopgap bill.The vote deeply dismayed Democratic activists and House Democrats who had urged their Senate counterparts to block the bill, which they fear would embolden Donald Trump and Elon Musk’s overhaul of the US government.Meanwhile, the US president used a speech at the Department of Justice – billed as a policy address for the administration to tout its focus on combating illegal immigration and drug trafficking – to focus on his personal grievances with that department.Here’s more on the key US politics news of the day:Senate averts shutdown but Democrats dismayedThe US Senate on Friday approved a Republican bill to fund federal agencies through September, averting a government shutdown hours before the midnight deadline after Democrats relented.The bill passed the Senate in a 54-46 vote, overcoming steep Democratic opposition. It next goes to Donald Trump to be signed into law.Read the full storyTrump vents fury about criminal cases in DoJ ‘victory lap’Taking over the justice department headquarters for what amounted to a political event, Donald Trump railed against the criminal cases he defeated by virtue of returning to the presidency in an extraordinary victory lap the department has perhaps never before seen.Read the full storyPutin praises Trump, likely raising alarm bells in Ukraine and Europe Vladimir Putin has praised Donald Trump for “doing everything” to improve relations between Moscow and Washington, after Trump said the US has had “very good and productive discussions” with Putin in recent days.The exchange of warm words between Trump and Putin is likely to cause further alarm in Kyiv and European capitals, already spooked by signs of the new US administration cosying up to Moscow while exerting pressure on Ukraine.Read the full storyVance booed at classical concertJD Vance, the US vice-president, was booed by the audience as he took his seat at a National Symphony Orchestra concert at Washington’s Kennedy Center on Thursday evening.Exclusive Guardian footage shows the vice-presidential party filing into the box tier. Booing and jeering erupted in the hall as Vance and his wife, Usha, took their seats.Read the full storyNewsom under fire for Bannon podcastGavin Newsom, the governor of California, was criticised for welcoming far-right provocateur Steve Bannon on to his podcast.Fellow potential future Democratic presidential candidate Andy Beshear, the governor of Kentucky, said “Bannon espouses hatred” and added “I don’t think we should give him oxygen on any platform, ever, anywhere”.Read the full storyMark Carney says Canada will never be part of USMark Carney has said Canada will never be part of the US, after being sworn in as the country’s 24th prime minister in a sudden rise to power.“We will never, in any shape or form, be part of the US,” the former governor of the Bank of Canada and the Bank of England told a crowd outside Rideau Hall in Ottawa, rejecting Donald Trump’s annexation threats. “We are very fundamentally a different country.”Read the full storyPro-Israel group touts US ‘deportation list’ of ‘thousands’ of namesA far-right group that claimed credit for the arrest of a Palestinian activist and permanent US resident who the Trump administration is seeking to deport claims it has submitted “thousands of names” for similar treatment.Mahmoud Khalil, an activist who recently completed his graduate studies at New York’s Columbia University, was detained this week and Donald Trump has said his arrest was the “first of many”. Betar US quickly claimed credit on social media for providing Khalil’s name to the government, adding that it had “been working on deportations and will continue to do so”.Read the full storyDemocratic senator ditches his Tesla over Musk cutsThe Arizona Democratic senator Mark Kelly announced he was ditching his Tesla car, because of brand owner Elon Musk’s role in slashing federal budgets and staffing and attendant threats to social benefits programs.“Every time I get in this car in the last 60 days or so, it reminds me of just how much damage Elon Musk and Donald Trump is doing to our country,” the former navy pilot said, in video posted to X.Read the full story60% of US voters disapprove of Musk cost-cuttingDonald Trump and Elon Musk face increasing headwinds in their attempt to slash federal budgets and staffing, after two judges ruled against the firing of probationary employees and public polling revealed strong disapproval of the Tesla billionaire’s work. A new Quinnipiac University poll found 60% of voters disapprove of how Musk and his so-called department of government efficiency are dealing with federal workers, while 35% approve.Read the full storyWhat else happened today:

      Marco Rubio told reporters that more visas of anti-war protesters who are on temporary status in the US will be revoked, Reuters reported.

      Former Democratic House speaker Nancy Pelosi released a statement in response to the government funding bill, calling it a “devastating assault on the wellbeing of working-class families”.

      Elon Musk’s Tesla has warned that Trump’s trade war could expose the electric carmaker to retaliatory tariffs that would also affect other automotive manufacturers in the US. The company said it “supports fair trade” but that the US administration should ensure it did not “inadvertently harm US companies”.
      Catching up? Here’s the roundup from 13 March. More

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      Democrats help advance Republican funding bill to avoid US shutdown

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      A handful of Senate Democrats on Friday helped pave the way to approve a Republican-drafted bill that would fund the government and avert a shutdown ahead of the midnight deadline.In a 62-38 vote, 10 Senate Democrats joined nearly all Republicans to break the filibuster and move the seven-month funding bill to a final vote. As part of a deal to secure the Democratic votes, the parties agreed to allow a series of amendments on the measure.The result will deeply disappoint Democratic activists and House Democrats who had urged their Senate counterparts to block the bill that they fear would embolden Donald Trump and Elon Musk’s overhaul of the US government.The California Democratic representative and former House speaker Nancy Pelosi came out against the continuing resolution (CR) on Friday after the Senate minority leader, Chuck Schumer, announced on Thursday he would urge Senate Democrats to advance the bill. Schumer argued that allowing a government shutdown would be “a far worse option” than passing the “deeply partisan” Republican legislation, but Pelosi called the bill a “devastating assault on the wellbeing of working-class families”.“Democratic senators should listen to the women,” she said in a statement. “Appropriations leaders Rosa DeLauro and Patty Murray have eloquently presented the case that we must have a better choice: a four-week funding extension to keep government open and negotiate a bipartisan agreement. America has experienced a Trump shutdown before – but this damaging legislation only makes matters worse.”Alexandria Ocasio-Cortez also condemned Schumer for caving to Republican demands on a government funding bill, saying the move had created a “deep sense of outrage and betrayal” among Democrats.Speaking to reporters in Leesburg, Virginia, where House Democrats were gathered for their annual policy retreat, Ocasio-Cortez said she was mobilizing Democratic supporters to push Schumer to oppose what she characterized as an “acquiesce” to the GOP bill.“We have time to correct course on this decision. Senate Democrats can vote no,” the New York Democrat said.The rift has reportedly sparked such anger among House Democrats that some are encouraging Ocasio-Cortez to challenge Schumer in a primary election, according to CNN. When asked about these suggestions, she declined to comment.On Thursday, Schumer said on the Senate floor: “The Republican bill is a terrible option. But I believe allowing Donald Trump to take even much more power via a government shutdown is a far worse option.”Trump praised Schumer on Truth Social, writing: “Congratulations to Chuck Schumer for doing the right thing – Took ‘guts’ and courage!”Schumer reiterated his support for the spending bill on the Senate floor on Friday, warning that a government shutdown would mean that Trump, Elon Musk and the so-called “department of government efficiency” (Doge) would be free to make even more disruptive cuts to federal agencies.“If government were to shut down, Doge has a plan in place to exploit the crisis for maximum destruction,” Schumer said. “A shutdown will allow Doge to shift into overdrive. It would give Donald Trump and Doge the keys to the city, state and country. Donald Trump and Elon Musk would be free to destroy vital government services at a much faster rate than they can right now and over a much broader field of destruction that they would render.”But the Federal Unionists Network, a group of federal employees that opposes the administration’s campaign to dramatically downsize government, disagreed, saying the funding bill under consideration would make the situation worse.“Once again, Congress is failing in its responsibility to the American people,” spokesperson Chris Dols said in a statement. “If passed, this CR will give Trump and Musk the power to complete their assault on federal workers.”skip past newsletter promotionafter newsletter promotionThe Senate majority leader, John Thune, a Republican, told reporters on Friday that he may allow some amendment votes on the spending bill, which could potentially offer a way to assuage Democrats’ concerns.The funding bill represents the first major leverage point in Trump’s second term, with House Democrats urging the Senate to instead consider a 30-day funding stopgap to allow more time for negotiations.Unlike the House vote, where all but one Democrat voted against the government funding bill, the response in the Senate is fractured. Republicans hold a 53-47 majority, and the Kentucky senator Rand Paul is expected to vote against the bill. If that is the case, eight Democratic votes will be needed to send the bill to Trump’s desk.While facing intense pressure from within their party to resist Trump and his billionaire ally Musk, the Senate Democrats who are leaning yes are worried about the impacts of a government shutdown, and what bill they could get passed from their minority position anyway.The yes crowd includes the Pennsylvania senator John Fetterman, who told MSNBC on Tuesday: “We don’t agree with what’s been sent to us but, you know, if we withhold our votes, that is going to shut the government down.”Still, Ocasio-Cortez particularly criticized Senate Democrats for even considering withdrawing support from a vote that nearly all battleground House Democrats were willing to take.“There are members of Congress who have won Trump-held districts in some of the most difficult territory in the United States who walked the plank and took innumerable risks in order to defend the American people,” she said. “Just to see Senate Democrats even consider acquiescing to Elon Musk, I think, is a huge slap in the face.” More