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      Debt ceiling talks suspended as US lurches towards default deadline

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      Negotiations for a deal to raise the US debt ceiling and thereby avoid a default with potentially catastrophic consequences for the world economy reached a worrying impasse on Friday.“We’re not there,” Garret Graves of Louisiana, the lead negotiator for House Republicans in talks with the Biden White House, told reporters at the Capitol.“We’ve decided to press pause, because it’s just not productive.”The treasury secretary, Janet Yellen, has said that without action the US government will cease to be able to pay its debts on or around 1 June.Joe Biden is away at the G7 summit in Japan. White House officials were leading talks for Democrats.One told the Guardian: “There are real differences between the parties on budget issues and talks will be difficult. The president’s team is working hard towards a reasonable bipartisan solution that can pass the House and the Senate.”For decades after 1917, when the federal debt was capped, raising that limit, or ceiling, was usually a routine procedure, if subject to political grandstanding.In 2006, the Illinois Democratic senator Barack Obama voted against a raise under a Republican president, George W Bush.But Republicans have increasingly and effectively employed threats to refuse to raise the ceiling as a bargaining tool and in 2011, as president, Obama was forced to say he regretted his vote of five years before.In the 2011 standoff, the House GOP extracted trillions of dollars in spending cuts which Obama was forced to sell to his party. Now, under Biden, the same dynamic is in play.With the Republican House speaker, Kevin McCarthy, beholden to far-right members who made him endure 15 votes before gaining the position, the GOP is demanding hefty cuts to spending, on Democratic priorities including healthcare and climate, in return for a debt ceiling raise.Democrats say Republicans should agree a clean raise – meaning without preconditions – as they did repeatedly under Donald Trump. Democrats also demand that Biden does not blink.At the Capitol on Friday, Graves said: “Until people are willing to have reasonable conversations about how you can actually move forward and do the right thing, then we’re not going to sit here and talk to ourselves.”Republican leaders outside the talks sought to apply pressure. Not long before Graves spoke to reporters, Trump said his party should not give ground.Republicans, the presidential frontrunner wrote on his Truth Social platform, “should not make a deal on the debt ceiling unless they get everything they want (including the ‘kitchen sink’). That’s the way the Democrats have always dealt with us. Do not fold!”Mitch McConnell, the Republican leader in the Senate, aimed fire at Biden, accusing the president of “wait[ing] months before agreeing to negotiate with Speaker McCarthy on a spending deal.“They are the only two who can reach an agreement,” McConnell said. “It is past time for the White House to get serious. Time is of the essence.”Chris Murphy, a Democratic senator from Connecticut, countered: “We are in a crisis, for ONE REASON – House Republicans threat to burn down the entire economy if they don’t get their way.”In a recent column for the New York Times, the Harvard law professor Laurence A Tribe, an expert in constitutional law, accused Republicans of playing “chicken or, maybe more accurately, Russian roulette” with the US debt.Tribe went on to outline his theory of how Biden has the authority to raise the ceiling on his own, under the 14th amendment, which says the US national debt “shall not be questioned”.Tribe wrote: “Mr Biden must tell Congress in no uncertain terms – and as soon as possible, before it’s too late to avert a financial crisis – that the United States will pay all its bills as they come due, even if the treasury department must borrow more than Congress has said it can.”Such a step has support from prominent Democrats.In a letter earlier this week, a group of senators including Elizabeth Warren and Bernie Sanders (an independent who caucuses with the party), said: “Using this authority would allow the United States to continue to pay its bills on-time, without delay, preventing a global economic catastrophe.”But Biden has resisted so far.On Friday, an unnamed official told the Washington Post the Biden White House still believed “a path to a reasonable bipartisan budget agreement” was possible, “as long as both sides recognise that they won’t get everything they want and compromise is necessary”.The Post also said the two sides had not agreed when to meet again. More

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      House Republicans sidestep effort to expel George Santos from Congress

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      Republicans successfully sidestepped an effort to force them into a vote to expel George Santos, the New York representative, from Congress, which could have narrowed their already slim four-seat majority.The House voted along party lines, 221-204, to refer a resolution to expel the congressman to the House ethics committee, with Santos himself joining his Republican colleagues in voting to do so.The freshman congressman has been charged with embezzling money from his campaign, falsely receiving unemployment funds and lying to Congress about his finances. He has denied the charges and has pleaded not guilty.Robert Garcia, a California Democratic representative, introduced a resolution in February to expel Santos, something the House has only done twice in recent decades. He sought to force a vote on that resolution under a process that left three options for Republicans: a vote on the resolution, a move to table or a referral to committee.Kevin McCarthy, the House speaker, chose the third option, much to the chagrin of Democrats who described it as a “complete copout”. They noted that the ethics panel is already investigating Santos and that it was time for Republican House members who have called for Santos to resign to back their words with action.“It is simply an effort for the Republicans to avoid having to take an up-or-down vote on whether or not George Santos belongs here,” said Dan Goldman, a New York Democrat.Democrats appealed to Republican lawmakers from New York for support. Many have been highly critical of Santos, and face the prospect of Democrats trying to link them to Santos in next year’s general election.“I say to you, if you vote for this motion to refer it to the ethics committee, you are complicit in George Santos’ fraud and you are voting to make sure that he continues to be a member of Congress,” Goldman said.Anthony D’Esposito, a New York Republican, made the motion to refer the expulsion resolution to the ethics panel. He said he was personally in favor of Santos being expelled, but added that “regrettably”, there were not enough votes to meet the two-thirds threshold necessary.skip past newsletter promotionafter newsletter promotion“I firmly believe this is the quickest way of ridding the House of Representatives of this scourge on government,” D’Esposito said.Republican leaders have said Santos deserves to have his day in court before Congress weighs in. The position Republican leaders have staked out generally follows the precedent that Congress has set in similar criminal cases over the years. The House has expelled just two members in recent decades, and both votes occurred after the lawmaker had been convicted on federal charges.The Department of Justice often asks the ethics panel to pause its investigations when a member of Congress has been indicted, but there has been no announcement of that kind from the committee regarding Santos. More

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      As Trump’s lies and scandals deepen, the GOP responds as usual – with silence

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      One day he was found liable for sexual abuse and defamation. The next he was on prime-time television pushing election lies, defending his own coup attempt and refusing to back Ukraine.To his millions of critics, it was another week that proved Donald Trump is unfit for office and dangerous to democracy. But to the top leaders of Trump’s Republican party, it was another week to keep heads down and say nothing.Kevin McCarthy, the speaker of the House of Representatives; Mitch McConnell, the minority leader in the Senate; leading state governors and even most of Trump’s potential rivals for the Republican presidential nomination in 2024 have made a habit of siding with him or remaining silent as each scandal comes and goes.Critics say their complicity underlines how comprehensively Trump took over the Republican party and shaped it in his own image. Even though McConnell and others privately loathe Trump and wish him gone, they dare not alienate his fervent support base. Rick Wilson, a former Republican consultant and co-founder of the Lincoln Project, an anti-Trump group, sums it up in one word: fear.“They are afraid of the mob, they’re afraid of the horde, they’re afraid of the anger and the craziness and the rage and the threats that come any time a Republican elected official really stands up and opposes Donald Trump,” Wilson said.He added: “None of the major elected officials – McConnell, McCarthy, the big state governors – are going to come out and say what they believe and know: that he is a monstrous figure and he is a dangerous figure.”Trump ran against the Republican establishment in 2016, exciting a grassroots army of supporters and eventually bending the party to his will. His victory over Democrat Hillary Clinton in the presidential election and pursuit of an agenda that fit many Republican priorities, from sweeping tax cuts to rightwing supreme court justices, persuaded many in leadership to overlook his chaotic style.But relations with McConnell soured over time, culminating in the 6 January 2021 insurrection at the US Capitol, for which he said Trump was “practically and morally responsible”. The former president has branded McConnell an “old crow” and repeatedly hurled racist insults at his Taiwanese-born wife, former transportation secretary Elaine Chao.Even so, despite their mutual animosity, the minority leader made clear this week that he will support Trump if he is the Republican nominee in 2024. Asked about the former president’s improving poll numbers, McConnell told CNN: “I’m going to support the nominee of our party for president, no matter who that may be.”Meanwhile Steve Daines, chair of the Senate Republicans’ campaign arm, has endorsed Trump for president in what many see as an attempt to curry favour with him and curb his meddling in next year’s Senate elections. Trump’s backing of extremists in last year’s midterms cost McConnell control of the Senate – an outcome that he is eager to avoid repeating.Wilson, author of Everything Trump Touches Dies, commented: “He can say, ‘See, Mr Trump, I’m loyal to you. I love you. I’m a good person. You should listen to me. Please, please, please don’t tell Tudor Dixon she should run again or don’t tell Kari Lake she should run again.’ These are very transactional and tactical approaches but nonetheless they are approaches that these people are willing to do to survive in a war with Trump.”He added: “There is no Republican party. It’s just Trump. It is only about his desires and his political power, his political goals. If you told the average Republican elected official, you have to cut off your arm to get an endorsement from Trump, they’re going to ask you for a saw and some Band-Aids.”McCarthy, for his part, also seemed shaken by the events of January 6, but later that month he visited Trump’s Mar-a-Lago home in Florida, signalling that all was forgiven. When McCarthy was elected speaker earlier this year after a gruelling series of votes, he paid tribute to Trump for working the phones to help him secure victory.Since then he has swatted aside every legal controversy, including last month when, as Trump became the first former president to face criminal charges, McCarthy tweeted that the Manhattan district attorney, Alvin Bragg, had “weaponized our sacred system of justice against President Donald Trump”.This week, in a civil case, a New York jury determined that Trump sexually abused and defamed the writer E Jean Carroll, awarding her $5m in damages (Trump is appealing the verdict). That alone would be enough to sink most political careers but McCarthy repeatedly dodged the issue when asked to comment by reporters on Capitol Hill.Other Republicans went further in expressing their fealty to Trump. Senator Marco Rubio of Florida told reporters: “That jury’s a joke. The whole case is a joke.” Senator Lindsey Graham of South Carolina added: “When it comes to Donald Trump, the New York legal system is off the rails.” Former vice-president Mike Pence told NBC News: “I would tell you, in my four and a half years serving alongside the president, I never heard or witnessed behaviour of that nature.”The following day, Trump gave an unhinged, falsehood-filled performance in a town hall event broadcast live on the CNN network. He vowed to pardon “a large portion” of the January 6 rioters, suggested that Republicans should let the government default on its debts and refused to call Vladimir Putin a war criminal over the killing of Ukrainian civilians.Strikingly, many in the audience in Manchester, New Hampshire, burst into applause and egged Trump on. When he made fun of Carroll they laughed. It was a glimpse of the “Make America great again” base that keeps party leaders awake at night.Donna Brazile, a former chairperson of the Democratic National Committee, said: “The voters stand by Donald Trump and as long as he has a grip on the Republican party and its voters, the leaders cannot step out ahead of where the voters are.“People should not condemn these voters, these voters who need to be educated, listened to and respected. After all, over 70 million Americans supported Donald Trump in the last election. That’s nothing to sneeze at. That’s voters who know what he stands for, know what he represents and still they’re with him.”She added: “As long as they’re sticking with Trump, I do believe that the leaders of the Republican party will also stand by Trump. Regardless of what they say behind his back, they’ll stick with Trump.”Even in the Trump era, the Republican party is not a monolith. The sexual abuse verdict prompted criticism from senators including John Cornyn, Mitt Romney, Mike Rounds and John Thune. In an interview with Punchbowl News, Bill Cassidy asked: “What if it was your sister? How could it not create concern?”After the chaotic CNN town hall, Chris Christie, a former governor of New Jersey, described Trump as “Putin’s puppet” and there was condemnation from Chris Sununu, the governor of New Hampshire, and Asa Hutchinson, a former governor of Arkansas running for president. But these are exceptions that prove the rule. Other confirmed or likely primary candidates steered clear in what is now a familiar pattern.After all, the Trump era is littered with the political corpses of Republicans who tried to oppose him only to suffer online abuse, public heckling, death threats or retribution at the ballot box. Senators Bob Corker, Jeff Flake and Ben Sasse and Representatives Justin Amash, Liz Cheney and Adam Kinzinger are among those who quit or were purged. They left behind a party that increasingly resembles Trump.Kurt Bardella, a Democratic strategist, said: “They have refused to divorce themselves from someone that they know is both a political loser for them and who represents things that are completely destructive to our democracy. After everything that we have seen, after everything that the Republican party itself has endured in terms of its underperforming in multiple election cycles, the only reason why they haven’t divorced themselves from Donald Trump is because they don’t want to.” More

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      Bipartisan US debt ceiling talks restart as deadline moves closer – as it happened

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      That’s it for today’s live politics blog!Here’s what happened today:
      Senate minority leader Mitch McConnell has said he will be in the 9 May meeting on the debt ceiling, but emphasized that Biden has to negotiate with House speaker Kevin McCarthy. “There is no solution in the Senate,” said McCarthy to reporters on Tuesday.
      A Florida woman faces two charges of battery – one a felony – after allegedly throwing a drink at the far-right Republican congressman Matt Gaetz.
      Senate majority leader Chuck Schumer has said that Democrats will wait on a 9 May meeting between Biden and congressional leaders to decide if they will move forward on a clean debt ceiling push that would not include spending cuts, but added that Democrats will be pushing for a two-year full extension.
      Illinois senator Dick Durbin said that he wants to move on a bill imposing a code of ethics on supreme court justices, but wants to make sure he has the votes, as California senator Dianne Feinstein remains absent from the Senate following a bout of shingles.
      New York representative Alexandria Ocasio-Cortez said late on Monday that Feinstein should resign, joining a bipartisan chorus calling for Feinstein to step down amid absences from the Senate.
      A new poll puts Donald Trump ahead of Florida governor Ron DeSantis among Republican primary voters in a hypothetical 2024 presidential primary election, as Trump continues to outperform DeSantis in several polls.
      Thank you for reading! Check in for more updates tomorrow!The White House’s economist warned against Republicans “playing games” with the US economy through the debt ceiling debate when interest rate increases are already having an averse impact on the economy, Reuters reports.“The economy remains, it’s been strong. You don’t want to be pushing it off of the course that it’s on,” said Heather Boushey in an interview with Reuters.Boushey added: “The Fed is raising interest rates in the hope of reducing inflation. That is having this negative effect on the banking sector. Why would we add to that?”Boushey noted that raising the debt ceiling could remove the risk of a debt default, one that could take affect on 1 June.A Florida woman was charged with allegedly throwing a drink at the Florida representative Matt Gaetz. The Guardian’s Martin Pengelly reports.
      A Florida woman faces two charges of battery – one a felony – after allegedly throwing a drink at the far-right Republican congressman Matt Gaetz.
      The Walton county sheriff reportedly said Gaetz insisted on pressing charges. Gaetz maintained he was justified in doing so, saying 41-year-old Selena Jo Chambers “cross[ed] the Rubicon beyond just words to throwing stuff”.
      A previous case of a drink being thrown at Gaetz resulted in a woman being sent to prison.
      In 2019, Amanda Kondrat’yev, then 35 and a former political opponent of Gaetz, received a 15-day prison sentence for throwing a slushie at her rival.
      That beverage-blitzing brouhaha happened at an “Open Gaetz” public event at restaurant in Pensacola appropriately named the Brew Ha Ha.
      Read the full story here.Senate majority leader Chuck Schumer has said that Democrats will wait on a 9 May meeting between Biden and congressional leaders to decide if they will move forward on a clean debt ceiling push that would not include spending cuts. Schumer added that he wants a two-year extension of the debt ceiling versus a stopgap measures, the Washington Post reported.Senate minority leader Mitch McConnell has said he will be in the 9 May meeting on the debt ceiling, but emphasized that Biden has to negotiate with House speaker Kevin McCarthy.“There is no solution in the Senate,” said McConnell to reporters on Tuesday.From CNN’s Manu Raju:Many expect McConnell to ultimately help negotiate a bipartisan debt ceiling agreement, as the Kentucky senator did in 2021.But McConnell has maintained that Biden must negotiate with McCarthy and House Republicans about the debt ceiling.Illinois senator Dick Durbin said that he wants to move on a bill imposing a code of ethics on supreme court justices, but wants to make sure he has the votes.CNN’s Manu Raju noted that with California senator Dianne Feinstein out, Durbin is unsure of when he could forward such legislation.“I’d like to make sure we have enough folks to pass it,” said Durbin.Feinstein is a member of the Senate judiciary committee, but has been out due a case of shingles. Durbin confirmed to Raju that he has “not personally” spoken with Feinstein about when she would return.The defense department and the Federal Aviation Administration have been tracking a balloon that was flying off the coast of Hawaii last week, but a defense official said today there’s no indication it is connected to China or any other adversary, and it presents no threats to aviation or national security, the Associated Press reports.The balloon was first detected by radar on Friday.
      Pacific Air Forces launched three F-22s to assess the situation and visually identified a spherical object. We monitored the transit of the object and assessed that it posed no threat,” US Indo-Pacific Command said.
      The defense official said the balloon was floating at about 36,000ft (11,000 meters), and it did not fly over any critical defense infrastructure or sensitive sites.After determining that the balloon presented no threat to people on the ground or to aviation over Hawaii, the military took no action to bring it down, said the official, who spoke on condition of anonymity to discuss military operations.It’s not clear who owns the balloon, which has now passed out of Hawaii’s airspace, the official said.The latest balloon sighting comes about three months after the US military shot down what officials said was a Chinese spy balloon that crossed Alaska and part of Canada before returning to the US and triggering widespread interest as it flew across the country.It was shot down over the Atlantic off the South Carolina coast on 4 February. Large portions of the balloon were recovered by the US military.US officials said it was equipped to detect and collect intelligence signals as part of a huge, military-linked aerial surveillance program that targeted more than 40 countries. Beijing insisted the balloon was just an errant civilian airship used mainly for meteorological research that went off course due to winds and had only limited “self-steering” capabilities.The US military acknowledged there have been several other balloons that have been tracked over and near the US in recent years, but none lingered over America for as long as that one did. The incident further eroded relations between the US and China.At a press conference just now, White House press secretary Karine Jean-Pierre elaborated on what Joe Biden will discuss with House majority leader Kevin McCarthy over the debt ceiling next week:“The president is going to make it clear to them that they have to avoid a default. It is their constitutional duty to do this. It is their constitutional duty to the American people for them to do their jobs. He will also say we will have a conversation about the budget and appropriations, and that is something that he will be very clear about. We can have a conversation about that, but it is important to not default.“The president is going to continue to make that clear. He is going to make that clear and have that conversation.”The Biden administration will temporarily send an additional 1,500 troops to the US-Mexico border as pandemic-related restrictions to migration are set to expire on 11 May.An unnamed US official told Reuters on Tuesday that the additional troops will be part of a supplementary preparation for an increase in illegal immigration as Title 42 comes to an end. Title 42 allowed the US to expel migrants amid the Covid-19 pandemic.The troops will not carry out any law enforcement operations and will assist US border patrol that is currently in the area, said the US official who asked to stay anonymous.The number of Americans listing guns and crime as a top issue for them has increased, according to a new Gallup poll.Of those polled for Gallup’s Most Important Problem list, seven percent said that guns and gun control were a priority issue for them, the Hill reported. Six percent listed crime and violence.In polling done months earlier, only 3% listed crime as their top issue and 1% listed crime.Both issues were listed below problems such as government and poor leadership, immigration and the economy.House Democrats have quietly started taking steps to introduce a rare legislative procedure that could force a debt limit increase and bypass Republican legislation for cuts.The New York Times just reported that Democrats are trying to set up a discharge petition that would allow Democrats to force a bill onto the floor if they get enough signatures – 218. This would mean all 213 house Democrats would need to sign the petition, and five Republican representatives would have to join.Though the House is in recess today, House Dems held a pro forma session and introduced an emergency rule that would give them two weeks, until 16 May, to collect the 218 signatures.Though Democrats see the bill as a gamble, Hakeem Jeffries, Democratic House minority leader, sent a letter to fellow Democrats today expressing a tone of defiance and saying that House Dems “are working to make sure we have all options at our disposal to avoid default”.Oklahoma is the latest state to pass legislation banning gender-affirming care for minors, as several states pass bills targeting the rights of transgender people.The Republican governor, Kevin Stitt, signed a bill on Monday making it a felony for healthcare practitioners to provide children with gender-affirming care, including puberty-blockers and hormones, the Associated Press reported.The bill comes as parents of transgender children, healthcare workers, and transgender people say that such care is essential.“Gender-affirming care is a critical part of helping transgender adolescents succeed, establish healthy relationships with their friends and family, live authentically as themselves, and dream about their futures,” said Lambda Legal and the ACLU in a joint statement, PBS Newshour reported.At least 15 other states have taken similar measures, with over 500 bills introduced in 2023 that target aspects of life for transgender people.A Montana lawmaker is suing the state, Montana’s house speaker, and the sergeant of arms of the state’s house after she was censured, asking to be fully reinstated to her position.House GOP voted to ban representative Zooey Zephyr on Wednesday from the state’s floor, gallery and anteroom after Zephyr, who is the state’s first openly transgender representative, criticized legislators for supporting a ban on gender-affirming care for minors.Zephyr is now suing to be allowed back onto the house floor as she is only allowed to vote virtually. The lawsuit, filed on Monday, argues that limiting her ability to vote violates “free speech and expression rights,” the Washington Post reported.“House leadership explicitly and directly targeted me and my district because I dared to give voice to the values and needs of transgender people like myself,” said Zephyr in a statement.“By doing so, they’ve denied me my own rights under the constitution and, more importantly, the rights of my constituents to just representation in their own government.”We’ve reached the midpoint for today’s politics live blog.Here’s what’s happened so far:
      New York representative Alexandria Ocasio-Cortez said late on Monday that the California senator Dianne Feinstein should resign, joining a bipartisan chorus calling for Feinstein to step down amid absences from the Senate.
      Senate majority leader Chuck Schumer said during a Tuesday speech on the Senate floor that Democrats will only pass a “clean” debt ceiling increase, as a 1 June debt default looms.
      A new poll puts Donald Trump ahead of Florida governor Ron DeSantis among Republican primary voters in a hypothetical 2024 presidential primary election, as Trump continues to outperform DeSantis in several polls.
      Debt ceiling talks have gained a second wind after a warning on Monday by the US treasury secretary Janet Yellen that the US could default on its debt as soon as 1 June, as Biden confers a 9 May meeting with top congressional leaders.
      Here is reporting on the Senate judiciary committee meeting from the Guardian’s Chris Stein, who is currently in the hearing room.Partisan splits were apparent in the Senate judiciary committee today as it kicked off a hearing on the supreme court’s ethics, with Democrats accusing the nation’s highest court of believing itself to be outside the law, and Republicans defending the justices from what they said were attacks motivated by bitterness over its recent rulings.“Ethics cannot simply be left to the discretion of the nation’s highest court,” the committee’s Democratic chair Richard Durbin said. “The Court should have a code of conduct with clear and enforceable rules so both Justices and the American people know when conduct crosses the line. The highest court in the land should not have the lowest ethical standards. That reality is driving a crisis in public confidence in the supreme court.”Durbin called the hearing after a series of reports about entanglements between the court’s justices, particularly its six conservatives, and lawyers and donors with interests in the court’s outcome. Chief justice John Roberts was invited to testify, but declined, instead sending a document signed by all of the court’s nine justices that outlined their approach to ethics.Lindsey Graham, the judiciary committee’s top Republican, said the Democrats were using the hearing to retaliate against justices who authored opinions they didn’t agree with. Last year, the court’s conservatives upended nearly a half-century of precedent by overturning Roe v Wade and allowing states to ban abortion entirely, cut into the Environmental Protection Agency’s ability to regulate power plant emissions and weakened laws on possession of concealed weapons.“This is not about making the court better,” Graham said. “This is about destroying a conservative court. It will not work.”The Senate judiciary committee is holding a meeting to discuss whether the US supreme court should bolster its ethics rules following a series of reported conflicts between supreme court justices and personal interests.The Tuesday meeting comes after several scandals that have called into question the ethics of the court and diminishing public confidence in the institution, the Washington Post reported.Most recently, supreme court justice Clarence Thomas has come under fire after media organization ProPublica publicized that the longest-serving justice accepted luxury travel and vacations over two decades from the real estate mogul and Republican donor Harlan Crow.Such gifts and a real estate deal between Thomas and Crow were undisclosed by Thomas.Ahead of today’s meeting, Chief Justice John Roberts declined an invitation to appear and testify about judicial ethics. The justice instead forwarded a three page “Statement on Ethics Principles and Practices”, which is signed by all nine justices. The non-binding memo is meant to “reaffirm and restate foundational ethics principles and practices to which they subscribe”.But Roberts himself is facing scrutiny after a whistleblower alleged that Roberts’s wife, Jane Roberts, made millions through recruiting for top law firms. More

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      Biden says banking system is ‘safe and sound’ despite First Republic collapse – as it happened

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      From 5h agoJoe Biden has been speaking at the White House about the collapse of First Republic Bank, insisting that the “safety and security” of the US banking system was paramount.JP Morgan stepped in quickly to snap up the “deposits and substantially all assets” of the California bank, the third US lender to fail this year.Biden praised the swiftness of the takeover by the nation’s largest bank:
      I’m pleased to say that regulators have taken action to facilitate the sale of First Republic bank, making sure that all depositors are protected, and the taxpayers are not on the hook.
      These actions are going to make sure that the banking system is safe and sound. And that includes protecting small businesses across the country who need to make payroll for workers and their small businesses.
      Touting the economic successes of his administration during an address for small business week, Biden used the crisis to pivot to an attack on so-called make America great again (Maga) Republicans he said were threatening the economy by presenting proposals over raising the national debt limit that were unacceptable:
      The most immediate thing we can do is ensure the continued reliance of our economy and the financial system. The most important thing we have to do in that regard is to make sure the threat by the speaker of the House to default on the national debt is off the table.
      For over 200 years, America has never, ever ever failed with a debt. America is not a deadbeat nation. We have never, ever failed to meet the debt.
      As a result, one of the most respected nations of the world, we pay our bills and we should do so without reckless hostage taking from some of the Maga Republicans in Congress.
      Read more:We’re closing the US politics blog now, thanks for joining us.It’s been an eventful day, with Joe Biden attempting to reassure the public the US banking system was “safe and sound” following the collapse of First Republic bank.The president praised regulators and JP Morgan bank, the nation’s largest, that stepped in to pick up First Republic’s deposits and assets, safeguarding money invested in the failed California institution.Here’s what else we followed:
      Kevin McCarthy launched a robust defense of his stance on Ukraine in a testy exchange with a Russian reporter in Jerusalem. The speaker, with a bipartisan delegation of lawmakers to celebrate Israel’s 75th anniversary, challenged the reporter’s assertion that Republican rightwingers weakened his position by calling for an end to US aid.
      The Democratic governor of Washington state, Jay Inslee, announced he would not seek a fourth term in elections next year.
      It followed an announcement by Democratic Maryland senator Ben Cardin that he was standing down after three terms in office, creating a primary battle for a seat crucial to his party’s hopes of retaining control of the chamber in the 2024 election.
      Ron DeSantis’s war on Disney escalated with a decision by his hand-picked board overseeing the theme park giant to sue the company. Disney sued the board last week saying the Republican Florida governor’s seizure of power over the company was a retaliatory move for opposing his “don’t say gay” law.
      Dominion Voting Systems executives insisted its $787.5m settlement with Fox News over the media company’s lies about the 2020 election did not include a requirement that rightwing TV celebrity Tucker Carlson be dismissed. Fox fired Carlson last week.
      Attorneys for Montana state representative Zooey Zephyr filed a lawsuit seeking her return to the House floor, a week after Republicans banished the transgender Democrat for her opposition to a proposed ban on gender-affirming care for trans children.
      Donald Trump will appear next week in a town hall debate hosted by CNN. The surprise announcement said the former president will participate in the 10 May event for Republican and undecided voters at St Anselm college, a liberal arts campus in Manchester, New Hampshire.
      Please join us again tomorrow for more live US politics.The US military is tracking a mysterious balloon that flew over American soil, NBC News is reporting. It is not clear what it is or who it belongs to, according to three US officials cited by the network.The object flew across portions of Hawaii but did not go over any sensitive areas, the officials said.NBC reported the military had been tracking the object since late last week and has not determined if posed a threat to aerial traffic or national security. It was not communicating signals, one official said.It is also not clear if it is a weather balloon or something else, the official said, adding that the US military could shoot it down if it nears land.It was revealed last month that a Chinese spy balloon that flew over parts of the US earlier this year, and was shot down in February, had sent sensitive intelligence from US military sites back to Beijing.Donald Trump will appear next week in a town hall debate hosted by CNN, the cable news channel he has frequently and loudly derided as “fake news”.The network made the surprise announcement on Monday afternoon, saying the former president will participate in the 10 May event for Republican and undecided voters at St Anselm college, a liberal arts campus in Manchester, New Hampshire.The event will be hosted by Kaitlan Collins, host of CNN This Morning.Trump attacked the network frequently during his single term in office, at one stage revoking the press credentials of White House correspondent Jim Acosta, a particular bête noire. Acosta was reinstated after a legal challenge.It is not yet known who else might be appearing at the event.Attorneys for Montana state representative Zooey Zephyr are asking a court to allow for her return to the House floor, a week after Republicans banished the transgender Democrat for her opposition to a proposed ban on gender-affirming care for trans children.A lawsuit was filed Monday in state district court in Helena on behalf of Zephyr and several constituents who say they are being denied their right to adequate representation, the Associated Press reported.Zephyr was removed from the chamber last week after telling Republicans they would have “blood on your hands” if they voted for the measure.The controlling party said her actions “violated decorum” and that she had incited protests at the statehouse.The legal challenge against House speaker Matt Regier and statehouse sergeant-at-arms Bradley Murfitt comes with just days left in the legislature’s biennial session. Neither has commented on the lawsuit.Another prominent Democrat, the governor of Washington state Jay Inslee, has announced he won’t be seeking re-election. It follows the declaration earlier Monday by Maryland senator Ben Cardin that he was standing down.Inslee won election to a third term in 2020, but said in a statement: “I’m ready to pass the torch”.He didn’t say what he intended to do after his retirement next year, but said: “Now is the time to intensely focus on all we can accomplish in the next year and a half”.Inslee, who ran for the Democratic party’s presidential nomination in 2020, added: “Serving the people as governor of Washington state has been my greatest honor”.Senior Democrat Jamie Raskin – the Maryland congressman – has paid tribute to his friend Ben Cardin, his state’s US senator who has announced he’s standing down after three terms in office:
      After 58 years of integrity-filled public service, where he showed his prodigious work ethic from Annapolis to Washington, senator Ben Cardin has assembled a remarkable record of advancing the needs and priorities of Maryland.
      I salute him and have congratulated him on a truly amazing and inspiring career devoted to service of our people and the old-fashioned public values of honesty and decency. I want to thank him, his beloved wife Myrna and their whole family for their outstanding and continuing contributions to our state.
      In his own statement saying he had given his “heart and soul” to the state, Cardin said he would remain in office until the 2024 election:
      There is still much work to be done. During the next two years, I will continue to travel around the state, listening to Marylanders and responding to their needs.
      My top priorities include continuing our progress for the Chesapeake Bay, helping the people of Baltimore city deal with the challenges they face, and permanently expanding opportunities for telehealth, mental and behavioral health.
      Kevin McCarthy had a testy exchange with a Russian reporter over the war in Ukraine after his speech to the Israeli Knesset this afternoon.Asked if Ukraine was losing the support of Republicans, following comments by rightwingers such as McCarthy ally Marjorie Taylor-Greene that the US “had done enough” to help the country against the Russian invasion, the speaker of the American House of Representatives was firm:
      I vote for aid for Ukraine. I support aid for Ukraine. I do not support what your country has done to Ukraine. I do not support your killing of the children either.
      And I think for one standpoint, you [Russia] should pull out and I don’t think it’s right, and we will continue to support because the rest of the world sees it just as it is.
      Joe Biden has been speaking at the White House about the collapse of California’s First Republic bank, the third US lender to fail this year. He said the swift action of regulators, and JP Morgan bank, the nation’s largest, to take on First Republic’s deposits and most assets, helped ensure the US banking system was “safe and secure”.Here’s what else we’ve been following:
      Kevin McCarthy, the first speaker to address the Knesset for 25 years, talked up US-Israel relations in Jerusalem, and pledged full financial support for the country’s security. He promised US support for ensuring Iran never obtains nuclear weapons.
      Ron DeSantis’s war on Disney stepped up a notch with a decision by his hand-picked board overseeing the theme park giant to file its own lawsuit against the company. Disney sued the board last week saying the Florida governor’s seizure of power over the company was a retaliatory move for its opposition to his “don’t say gay” law.
      Democratic Maryland senator Ben Cardin announced he was standing down after three terms in office, opening the prospect of a furious primary battle for a seat crucial to his party’s hopes of retaining control of the chamber in the 2024 election.
      Dominion Voting Systems executives have been insisting that its $787.5m settlement with Fox News over the media company’s lies about the 2020 election did not include a requirement that rightwing TV celebrity Tucker Carlson be dismissed. Fox fired Carlson last week.
      We’ve plenty more coming up this afternoon. Please stick with us.Joe Biden has been speaking at the White House about the collapse of First Republic Bank, insisting that the “safety and security” of the US banking system was paramount.JP Morgan stepped in quickly to snap up the “deposits and substantially all assets” of the California bank, the third US lender to fail this year.Biden praised the swiftness of the takeover by the nation’s largest bank:
      I’m pleased to say that regulators have taken action to facilitate the sale of First Republic bank, making sure that all depositors are protected, and the taxpayers are not on the hook.
      These actions are going to make sure that the banking system is safe and sound. And that includes protecting small businesses across the country who need to make payroll for workers and their small businesses.
      Touting the economic successes of his administration during an address for small business week, Biden used the crisis to pivot to an attack on so-called make America great again (Maga) Republicans he said were threatening the economy by presenting proposals over raising the national debt limit that were unacceptable:
      The most immediate thing we can do is ensure the continued reliance of our economy and the financial system. The most important thing we have to do in that regard is to make sure the threat by the speaker of the House to default on the national debt is off the table.
      For over 200 years, America has never, ever ever failed with a debt. America is not a deadbeat nation. We have never, ever failed to meet the debt.
      As a result, one of the most respected nations of the world, we pay our bills and we should do so without reckless hostage taking from some of the Maga Republicans in Congress.
      Read more:Long-serving Democratic senator Ben Cardin of Maryland is expected to announce his retirement Monday after serving three terms, opening a rare vacancy in the chamber ahead of the 2024 election, according to the Associated Press, citing his spokesperson.The 79-year-old plans to release a statement saying he will not seek reelection. His retirement is likely to create a highly competitive Democratic primary to replace him as the party faces a tough electoral map to maintain its slim majority next year.Cardin has served in the Senate since 2006, when he won a seat to replace retiring Democrat Paul Sarbanes. Before that, he was a congressman who represented a large part of Baltimore and several nearby suburbs, winning his first House race in 1986.During his tenure in the Senate, Cardin has been a leader on health care, retirement security, the environment and fiscal issues. The senator has been a leading advocate for clean water and the Chesapeake Bay, the nation’s largest estuary, which flows in his home state.No reason for his decision was given. More

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      Danger and deja vu: what 2011 can tell us about the US debt ceiling crisis

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      Angry at the size of the government debt, House Republicans have passed a bill that ties spending cuts to any lifting of the US’s debt limit. A tense fight is escalating, with Democrats refusing to budge and hard-line Republicans digging in. Without a solution, economists and others warn, the US could be plunged into an “economic catastrophe”.You can be forgiven a sense of déja vu. This has all happened before. Only this time, it could be worse.The federal government has a legal maximum on how much debt it can accumulate –often called the debt ceiling or the debt limit. Congress has to vote to raise that limit and has done 78 times since 1960 – often without fuss. But in recent years, the debt negotiations have become Washington’s most heated – and potentially dangerous – debate.This year’s fight looks like the most high-risk one since 2011, when Republicans used the debt limit debate as a bargaining chip for spending cuts. It was a fight to the bitter end. One former congressman told the New York Times that the battle drew “parallels and distinctions with other tumultuous times such as the civil war”.With stock markets reeling and 72 hours left before the US would have defaulted on its debts, a disaster that threatened to wreak havoc on the economy, Republicans and Democrats finally agreed on a bill that raised the debt ceiling by $900bn and cut spending by nearly the same amount.For Republicans, particularly the new rightwing Tea Party members who refused to budge even as default loomed, it was a political win.Politics are once again deeply embedded in this year’s debt ceiling debate and many see a mirroring of the debt ceiling crisis of 2011.The House speaker, Kevin McCarthy, is caught between his party’s moderate and far-right factions. Though McCarthy rallied his party behind a House bill, Democrats are so far refusing to negotiate.The US treasury is already running on fumes. In January, the treasury started using “extraordinary measures” to avoid defaulting on US debts while the debate over raising the limit started. Some estimate that the US government’s default date – the so-called “X date” when the government officially runs out of funds to pay its bills — will arrive in late July, giving the GOP and Democrats less than three months to find a solution.The US has never defaulted on its debt. Failure to find a solution would send stock markets reeling, recipients of federal benefits might not get their monthly checks, parts of government would grind to a halt and “long-term damage” would be inflicted on the US economy, according to the Federal Reserve chair, Jerome Powell.Fights over the US debt ceiling are common and usually resolved after a session of bloviating. Wall Street has so far ignored this scrap, betting on a repeat. But, as in 2011, all that could change as the X date approaches. This time the Tea Party Republicans have been replaced by even more hardline politicians – the Freedom Caucus – who begrudgingly signed on to McCarthy’s plan but have sworn to hold out for cost cuts no matter the price.“What will damage the economy is what we’ve seen the last two years: record spending, record inflation, record debt. We already know that’s damaging the economy,” Representative Jim Jordan, a founding member of the Freedom Caucus, told Reuters.David Kamin, a New York University law professor who served as an economic adviser to the Obama and Biden administrations, including during the 2011 crisis, said: “Congress has negotiated [the debt ceiling] over the many decades that it’s been in its current form. But what is different about this episode, and the episode in 2011, is the very credible threat from the Republican side to not raise the debt limit, to demand a large set of policy in exchange for a vote.” He added: “That then sets up a dangerous negotiation where what’s at stake is severe repercussions for the economy.”A default would be catastrophic for the US and global economy, creating instability in financial markets and interrupting government services. But, as the 2011 crisis showed, even getting close to default comes with a price. Markets plummeted and the ratings agency S&P downgraded the US’s credit rating for the first time in history, making it more expensive for the country to borrow money. The cost to borrow went up $1.3bn the next year and continued to be more expensive years later, essentially offsetting some of the negotiation’s cost-cutting measures.To some economists, that was just the short-term impact. The spending cuts ushered in years of budget tightening whose impacts were felt for years.“We were still in a pretty depressed economy and in recovery from the great recession when those cuts were instituted. They just made the recovery last far longer than it should have,” said Josh Bivens, chief economist for the Economic Policy Institute, a leftwing thinktank. “Over the next six or seven years, really valuable public goods and services were not delivered because they were cut so sharply.”Government spending tends to rise after recessions but per-capita federal spending fell after the debt crisis. Bivens argues that if government spending had continued at its normal levels, the unemployment rate would have returned to its pre-recession level five or six years before 2017, when the job market finally recovered its losses.This time around the Republican bill, called the “Limit, Save and Grow Act”, would increase the debt ceiling by $1.5tn in exchange for $1.47tn in cuts during the next fiscal year and a 1% spending increase cap thereafter. The Congressional Budget Office estimates that the bill would cut federal spending by $4.8tn over the next 10 years.The bill would mean cuts to things like defense, education and social services over time, though Republicans have outlined few specific cuts in the bill. House Republicans are proposing scrapping Joe Biden’s student relief program, making more stringent work requirements for government benefits, namely Medicaid, and rolling back several Inflation Reduction Act investments, particularly clean energy tax credits.The IRS would lose $71bn in funding under the new bill, a move that would lead to more lenient tax collection and ultimately cost the federal government $120bn over the next decade. Republicans have been targeting the IRS for budget cuts for over a decade, weakening the agency’s tax enforcement over corporations and the wealthy and allowing $18bn in lost government revenue, ProPublica estimated in 2018.While Republicans are using old tricks from 2011, Democrats appear to have learned some lessons from the Obama-era spat. After 2011, the Obama administration refused to negotiate over the debt ceiling. Biden and other Democratic leaders have continued the practice: the Senate majority leader, Chuck Schumer, called the Republican bill “dead on arrival” when it got to the Senate.“President Biden will never force middle class and working families to bear the burden of tax cuts for the wealthiest, as this bill does,” the White House press secretary, Karine Jean-Pierre, said in a statement Wednesday. “Congressional Republicans must act immediately and without conditions to avoid default and ensure that the full faith and credit of the United States is not put at risk.”The question now is: what are the political costs for the Democrats and Republicans? As the crisis deepens, how long will they hold and who will fold?Despite Republicans preaching fiscal discipline, US debt actually rose by $7.8tn under the Trump administration. Spending cuts would also likely target GOP-friendly expenditures. The party has already had to make a tough compromise over ethanol tax credits, which were ultimately left untouched at the behest of “Corn Belt” Republican lawmakers. And McCarthy still lost four Republican votes, the most he can afford to lose with the Republicans’ slim House majority. He has little room to compromise even if he can get Biden to negotiate.Matt Gaetz, a Republican representative from Florida and another Freedom Caucus member, voted against McCarthy’s bill and said in a statement that it would “increase America’s debt by $16tn over the next ten years”.“Gaslighting nearly $50tn in debt to America is something my conscious [sic] cannot abide at this time,” Gaetz said.Kamin pointed out that Republicans only focus on the debt ceiling as a leverage point when there is a Democratic president – the debt ceiling was raised three times during Trump’s presidency – showing that their objective is less about actually reducing the deficit than it is about playing politics.“The Republican party – at least elements of the Republican party – have organized themselves using this as a litmus test for adherence to their beliefs and are really focused on it as a central element of their agenda,” Kamin said. But the fight is “not fundamentally about deficits and debt”, he said. It is a fight about politics.As in 2011, the two sides are locked in a game of chicken and waiting for the opposition to cave. If neither side blinks, the impact on the economy will be felt for years to come. More

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      US House passes debt ceiling bill in tactical victory for Kevin McCarthy

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      House Republicans narrowly passed sweeping legislation on Wednesday that would raise the government’s legal debt ceiling by $1.5tn in exchange for steep spending restrictions, a tactical victory for the House speaker Kevin McCarthy as he challenges Joe Biden to negotiate and prevent a catastrophic federal default this summer.Biden has threatened to veto the Republican package, which has almost no chance of passing the Senate in the meantime, where Democrats hold a slim majority.The president has so far refused to negotiate over the debt ceiling which the White House insists must be lifted with no strings to ensure America pays its bills.But McCarthy’s ability to swiftly unite his slim majority in the House and bring the measure to passage over opposition from Democrats and even holdouts in his own party gives currency to the Republican speaker’s strategy to use the vote as an opening bid forcing Biden into talks. The two men could hardly be further apart on how to resolve the issue.The bill passed by a razor-thin 217-215 margin.“We’ve done our job,” McCarthy said after the vote.“The president can no longer ignore” the issue of federal spending limits, he said. “Now he should sit down and negotiate.”As the House debated the measure, Biden indicated he was willing to open the door to talks with McCarthy, but not on preventing a first-ever US default that would shake America’s economy and beyond.“Happy to meet with McCarthy, but not on whether or not the debt limit gets extended,” Biden said. “That’s not negotiable.”Passage of the sprawling 320-page package in the House is only the start of what is expected to become a weeks-long political slog as the president and Congress try to work out a compromise that would allow the nation’s debt, now at $31tn, to be lifted to allow further borrowing and stave off a fiscal crisis.The nation has never defaulted on its debt, and the House Republican majority hopes to maneuver Biden into a corner with its plan to roll back federal spending to fiscal 2022 levels and cap future spending increases at 1% over the next decade, among other changes.In exchange for raising the debt limit by $1.5 trillion into 2024, the bill would roll back overall federal spending and:
      Claw back unspent Covid-19 funds.
      Impose tougher work requirements for recipients of food stamps and other government aid.
      Halt Biden’s plans to forgive up to $20,000 in student loans.
      End many of the landmark renewable energy tax breaks Biden signed into law last year. It would tack on a sweeping Republican bill to boost oil, gas and coal production.
      Democrats derided the Republican plan as a “ransom note”, a “shakedown” and “an unserious bill” that was courting financial danger.It’s a first big test for the president and the Republican speaker, coming at a time of increased political anxiety about the ability of Washington to solve big problems amid the need to raise the federal debt limit in a matter of weeks.The treasury department is taking “extraordinary measures” to pay the bills, but funding is expected to run out this summer. Economists warn that even the serious threat of a federal debt default would send shockwaves through the economy.A nonpartisan congressional budget office analysis estimated the Republican plan would reduce federal deficits by $4.8tn over the decade if the proposed changes were enacted into law.In the Senate, leaders were watching and waiting.Senate majority leader Chuck Schumer said House passage of the legislation would be a “wasted effort” and that McCarthy should come to the table with Democrats to pass a straightforward debt-limit bill without GOP priorities and avoid default.Senate Republican leader Mitch McConnell, who stepped aside to give McCarthy the lead, said the speaker has been able to unite the House Republicans.Now, he said, Biden and McCarthy must come to agreement. Otherwise, he said, “We’ll be at a standoff. And we shouldn’t do that to the country.” More