More stories

  • in

    Zelenskyy to replace Ukraine’s envoy to US in diplomatic shuffle

    Volodymyr Zelenskyy is replacing Ukraine’s ambassador to the US, who has been heavily criticised by leading Republicans, as part a diplomatic reshuffle designed to strengthen ties with the Trump administration.Ukraine’s foreign minister, Andrii Sybiha, confirmed on Wednesday that Oksana Markarova will be recalled from Washington after four years in the job. He described her as “extremely effective, charismatic and one of our most successful ambassadors”.He indicated that several top ambassadors to G7 and G20 countries would also be moved, telling Ukrainian radio “Every diplomat has a rotation cycle”.The diplomatic shake-up comes at a critical moment in the war. Russian troops have been attacking across the 600-mile frontline and in recent weeks the speed of their gains has increased, with the Kremlin spokesperson declaring: “We are advancing.”Russian combat units are for the first time close to crossing into Dnipropetrovsk oblast.Late on Tuesday and early on Wednesday, Russia carried out its biggest aerial attack since the start of its full-scale invasion in February 2022. It involved a record 728 Shahed-type drones, as well as 13 cruise and ballistic missiles. Most were shot down.The US House of Representatives speaker, Mike Johnson, is among the Republican figures who have criticised Markarova, accusing her of supporting the Democratic party and its candidate Kamala Harris in the run-up to last November’s presidential election.View image in fullscreenIn February she was pictured with her head in her hand during Volodymyr Zelenskyy’s disastrous meeting with Donald Trump in the Oval Office.There were calls for her dismissal after Zelenskyy visited a shell factory in Pennsylvania last September. Markarova organised the visit and did not invite a single Republican, Johnson said at the time.Ukrainian officials deny any bias but acknowledge the ambassador previously had good relations with the Biden administration and was close to Victoria Nuland, the then undersecretary of state for political affairs.Zelenskyy and Trump discussed Markarova’s departure during a phone call last Friday which Ukraine’s president hailed as their most constructive to date.On Tuesday, Trump expressed growing frustration with Vladimir Putin and announced US weapons deliveries to Kyiv would be restarted. His announcement followed a week-long pause, apparently ordered by Pete Hegseth, the US secretary of defense.The shipment includes Patriot interceptor missiles and other precision munitions. It is unclear how many will be transferred. The US news website Axios reported 10 missiles would be delivered – a tiny amount at a time when Moscow has dramatically escalated its bombardment of Ukrainian cities.The overnight raid was directed at the northwestern city of Lutsk. At least six civilians were killed and 39 injured in several other regions of the country, including Kharkiv and Donetsk in the north-east and east, and Kherson and Zaporizhzhia in the south.A one-year-old boy, Dmytro, died in the village of Pravdyne in Kherson oblast when the Russians hit his house with drones, the local administration reported. The boy had been staying with his great-grandmother.One possible successor to Markarova in Washington is said to be Ihor Zhovkva, the deputy head of the office of Ukraine’s president. Zhovka’s immediate boss is Andriy Yermak, who is widely seen as the most influential person in Ukrainian politics after Zelenskyy.Other names include the finance minister, Serhiy Marchenko, and Olha Stefanishyna, who is deputy prime minister for Europe and Euro-Atlantic integration, as well as minister of justice.There is growing optimism in Kyiv that Trump’s pivot earlier this year towards Russia has been halted, if not quite reversed. One former Ukrainian official credited Jonathan Powell, the UK’s national security adviser and a veteran negotiator, with the transformation.Powell has played an important role in repairing Zelenskyy’s fraught relations with Washington after the Oval Office bust-up.He advised Ukraine’s government to avoid confronting the US president and to take his words as truth. The approach – described as “strategic patience” – was beginning to pay off, the official suggested.Zelenskyy has agreed to US proposals for a 30-day ceasefire, repeatedly praised Trump’s leadership, and signed a deal giving American investors access to Ukraine’s valuable natural resources.On Wednesday he met Pope Leo in Rome before a two-day international conference, organised to help Ukraine’s postwar recovery. Zelenskyy said they had discussed the return of Ukrainian children and civilians who had been abducted by Russia and the Vatican’s offer to facilitate peace negotiations.Germany’s chancellor, Friedrich Merz, is due to attend the conference. In a recent call with Trump, Merz reportedly offered to buy Patriot anti-defence batteries from the US and to send them to Ukraine.Trump’s Ukraine envoy, Keith Kellogg, is also due in Rome and is likely to hold talks on weapons deliveries with Rustem Umerov, Ukraine’s defence minister. More

  • in

    House passes Trump’s major tax-and-spending bill, sending it to president to sign into law – live updates

    House Republicans passed Trump’s “one big, beautiful bill” in a 218-214 vote that was almost entirely along party lines on Thursday. The bill next goes to the president for his signature. The White House has said Trump is expected to sign the bill on Friday at 5pm EST.

    The Democratic leader, Hakeem Jeffries, prolonged the vote with a record-setting speech in which he decried provisions in the bill that would slash social safety net programs in order to offset the cost of making Trump’s tax cuts permanent.

    Only two House Republicans voted against the measure, for different reasons that showed the ideological span of the party’s wafer-thin majority. Kentucky congressman Thomas Massie, a libertarian-leaning fiscal hawk who has drawn Trump’s wrath for opposing his agenda, and Pennsylvania congressman Brian Fitzpatrick, who was opposed to the Medicaid cuts.

    Democrats led by Jeffries assailed the bill as “an all-out assault on the American people”. Meanwhile, Democratic groups were vowing to hammer Republicans for their support of a bill that projections say would lead millions of Americans to lose their health insurance.
    Donald Trump, who is on his way to Iowa for a rally, just told reporters that, just weeks after the military parade on his birthday, he is staging an air show with advanced air force bombers at the White House on Friday to celebrate his signing into law the massive tax-and-spending package that passed the House on Thursday.“We’re going to have B-2s and F-22s and F-35s flying right over the White House”, Trump said. “So we’ll be signing with those beautiful planes flying right over our heads.”The Fourth of July bill signing comes on the sixth anniversary of Trump’s 2019 independence day speech, in which the president claimed, according to the official transcript, that, during the war of 1812, the US army “took over the airports; it did everything it had to do”.The US supreme court on Thursday granted a Trump administration request to pause a lower court’s order that had blocked the Department of Homeland Security from deporting eight migrants to politically unstable South Sudan, clearing the way for the men with no ties to that nation to be moved from a military base in Djibouti where they have been held for weeks.Last month, the court had put on hold an injunction issued in April by a US district court judge in Boston, Brian Murphy, which requiring migrants set for removal to so-called “third countries” where they have no ties to get a chance to argue that they are at risk of torture there, while a legal challenge plays out.By a vote of 7-2, with the liberal justice Elena Kagan joining the court’s six conservatives, the court granted the administration’s request to clarify that its decision also extended to Murphy’s separate ruling in May that the administration had violated his injunction in attempting to send a group of migrants to South Sudan.The US state department has urged Americans to avoid the African nation “due to crime, kidnapping and armed conflict.”In her concurring opinion, Kagan wrote: “I continue to believe that this Court should not have stayed the District Court’s April 18 order enjoining the Government from deporting non-citizens to third countries without notice or a meaningful opportunity to be heard.”“But”, she added, “a majority of this Court saw things differently, and I do not see how a district court can compel compliance with an order that this Court has stayed.”Two liberal justices, Sonia Sotomayor and Ketanji Brown Jackson, dissented from the decision.“What the Government wants to do, concretely, is send the eight noncitizens it illegally removed from the United States from Djibouti to South Sudan, where they will be turned over to the local authorities without regard for the likelihood that they will face torture or death”, Sotomayor wrote in her dissent, which was joined by Jackson.“Today’s order clarifies only one thing: Other litigants must follow the rules, but the administration has the Supreme Court on speed dial”, she added.Among the Democrats expressing dismay at the passage of Trump’s tax-and-spending bill are the party’s two previous nominees who ran against him for president, Kamala Harris and Joe Biden.“Republicans in Congress have voted to devastate millions of people across our nation — kicking Americans off their health care, shuttering hospitals, eliminating food assistance, and raising costs”, Harris said in a social media post on Thursday. “This is Project 2025 in action”, she added, reminding voters that cuts to Medicaid and Supplemental Nutrition Assistance Program (SNAP) benefits were both part of the conservative Heritage Foundation’s blueprint for Trump’s second term that she had railed against during her abbreviated campaign for the presidency last year.“The Republican budget bill is not only reckless — it’s cruel”, Biden posted about 30 minutes before Harris. “It slashes Medicaid and takes away health care from millions of Americans. It closes rural hospitals and cuts food assistance for our veterans and seniors. It jacks up energy bills. And it could trigger deep cuts to Medicare while driving up the deficit by $4 trillion. All of this to give a massive tax break to billionaires. Working people deserve better.”

    House Republicans passed Trump’s “one big, beautiful bill” in a 218-214 vote that was almost entirely along party lines on Thursday. The bill next goes to the president for his signature. The White House has said Trump is expected to sign the bill on Friday at 5pm EST.

    The Democratic leader, Hakeem Jeffries, prolonged the vote with a record-setting speech in which he decried provisions in the bill that would slash social safety net programs in order to offset the cost of making Trump’s tax cuts permanent.

    Only two House Republicans voted against the measure, for different reasons that showed the ideological span of the party’s wafer-thin majority. Kentucky congressman Thomas Massie, a libertarian-leaning fiscal hawk who has drawn Trump’s wrath for opposing his agenda, and Pennsylvania congressman Brian Fitzpatrick, who was opposed to the Medicaid cuts.

    Democrats led by Jeffries assailed the bill as “an all-out assault on the American people”. Meanwhile, Democratic groups were vowing to hammer Republicans for their support of a bill that projections say would lead millions of Americans to lose their health insurance.
    Maryland congressman Andy Harris, chair of the far-right House Freedom caucus, told reporters on Capitol Hill: “If winning is caving, then I guess we caved.”Harris repeatedly cited unspecified “agreements” with the Trump administration for persuading himself and other hardliners to drop their objections to the bill. He declined to divulge any details about the “agreement” brokered at the White House, telling reporters to “ask the president”.“This is a very good Republican product,” he added. “It’s going to move the president’s agenda forward. It’s going to actually seriously deal with spending and, of course, not provide a tax increase to middle-class America.”The bill is projected to add trillions to the national debt.Democrats and liberal activists have assailed the bill, warning that they will hold Republicans who voted for it accountable in next year’s midterm elections.“This budget is as cruel as it is corrupt. House Republicans just voted to gut Medicaid, kick millions off Snap, rip free school lunches from kids, and pour billions into Ice – all so their donors can rake in more tax breaks,” said Indivisible’s co-founder and co-executive director Ezra Levin. “Trump just made every single Republican more vulnerable – and while they’ll try to spin this disastrous bill, they know exactly how deep the hole they’ve dug is. But when Trump snaps his fingers, they fall in line – no matter how many families they throw under the bus. That spineless loyalty will be their downfall.”Congressman Tim Burchett, a Tennessee Republican who was one of the conservative holdouts, told reporters on Capitol Hill that Trump understands the art of a deadline.“I believe that’s why they called the vote last night, because that put everybody at the table, and they said, ‘This is the deadline,’” he said, explaining how the president and leaders eventually quelled their short-lived revolt.Major changes to the bill, which they had demanded, would have required Senate approval, which Burchett did not believe they would get again. “It would have died, it would have never it would have never passed. If it went back to the Senate, [Alaska senator Lisa] Murkowski – we would never get her vote again.”The White House press secretary, Karoline Leavitt, has told reporters that Donald Trump plans to sign the colossal tax and spending bill at 5pm EST on Friday, the Independence Day holiday. It will come as the White House is preparing to hold a Fourth of July picnic to mark the nation’s 249th birthday.At a signing ceremony on Thursday afternoon, Mike Johnson joked that he was operating on such little sleep after marathon days of voting that “I’m a danger to myself and others”.“We knew that if we won, and we believed we would, we knew that if we got unified government, we’d have to quite literally fix every area of public policy,” Johnson said. “Everything was an absolute disaster under the Biden-Harris, radical, woke, progressive Democrat regime, and we took the best effort that we could, in one big, beautiful bill, to fix as much of it as we could.”Johnson then signed the legislation that will be sent to the White House.Massie, the other Republican who has consistently opposed the bill, said he voted against it on Thursday because of the harm he believes it would do to the nation’s finances.“I voted No on final passage because it will significantly increase U.S. budget deficits in the near term, negatively impacting all Americans through sustained inflation and high interest rates,” he wrote on X.Congressman Brian Fitzpatrick, one of only two Republicans who voted against the president’s megabill, has issued a statement explaining his decision.
    As I’ve stated throughout these negotiations, with each iteration of legislative text that was placed on the House floor, I’ve maintained a close and watchful eye on the specific details of these provisions, and determined the specific district impact, positive or negative, on our PA-1 community.
    I voted to strengthen Medicaid protections, to permanently extend middle class tax cuts, for enhanced small business tax relief, and for historic investments in our border security and our military. However, it was the Senate’s amendments to Medicaid, in addition to several other Senate provisions, that altered the analysis for our PA-1 community. The original House language was written in a way that protected our community; the Senate amendments fell short of our standard. I believe in, and will always fight for, policies that are thoughtful, compassionate, and good for our community. It is this standard that will always guide my legislative decisions.
    Fitzpatrick represents a competitive, heavily suburban Pennsylvania district.The White House is celebrating passage of the president’s domestic policy bill.Republican leaders are taking a victory lap, heaping praise on “our leader”.“They doubted us,” said Representative Lisa McLain of Michigan, the House GOP conference chair. “But here we are again! What are we? Six and zero?”“We delivered on our promises to the American people – no taxes on tips, no taxes on overtime, tax relief for seniors, enhanced childcare tax credits, elimination of the death tax, more Ice agents – we’re finishing the border wall and funding the golden dome.”Representative Tom Emmer, another member of leadership, repeated the Republican claim that the bill cuts only “waste, fraud and abuse” from Medicaid. According to estimates from the nonpartisan Congressional Budget Office, the bill cuts roughly $1t from Medicaid, a joint federal and state health insurance program for disabled and low-income Americans. It would result in an estimated 11.8 million people losing health insurance over the next decade.“To put it simply,” Emmer said, “this bill is President Trump’s ‘Make America Great Again’ agenda. Being codified into law from Minnesota to Texas and Maine to California, there are wins in this legislation for every single American.”Here’s a breakdown of what’s in the tax cut and spending bill that just passed the House, and next goes to Trump for his signature.The bill is largely the same version as the one Senate Republicans narrowly passed, with JD Vance casting the tie-breaking vote. Trump has imposed a 4 July deadline for the legislation to be on his desk.In a vote of 218-214, Republicans passed Trump’s megabill, sending it to the president’s desk by his self-imposed Independence Day deadline. Republicans burst into chants of “U-S-A!”In the end, two Republicans voted against the bill: Kentucky congressman Thomas Massie, a libertarian-leaning fiscal hawk who has drawn Trump’s wrath for opposing his agenda, and Pennsylvania congressman Brian Fitzpatrick, who was opposed to the Medicaid cuts.The 15-minute voting window has now closed – though that matters little. It will remain open for as long as Republican leaders believe they need.So far, two Republicans are recorded as voting against the bill, though nothing is final until the vote officially closes. One Republican – conservative Ralph Norman, has yet to vote, according to CSPAN.Passage would amount to a remarkable feat for Johnson, who has navigated, in his own words, “so many dire straits” since assuming the gavel.Johnson, once a relatively unknown congressman from Louisiana, came to power after the historic ouster of former speaker Kevin McCarthy, who was toppled by hardliners in his own party. Many expected Johnson – soft-spoken, deeply religious and lacking leadership experience – would meet a similar fate.Yet, in the months since, Johnson has surprised both his critics and colleagues by holding together one of the narrowest House majorities in modern history. He has overcome the threat of rebellion from the hard-right faction of his party and mollified moderates uneasy with aspects of the president’s agenda.One critical factor in his success so far: Trump’s support. The president’s backing has largely helped insulate Johnson from the kind of rightwing backlash.The House has officially started voting on final passage of Trump’s so-called “one big, beautiful” bill – more than 24 hours after it the reconciliation package was first brought to the floor. It is expected to narrowly pass, with all Democrats opposed.Johnson closed his remarks with a plea to members to help pass Trump’s megabill, though his cheery delivered made clear he no longer had any doubts about the outcome.“The president of the United States is waiting with his pen. The American people are waiting for this relief,” Johnson said. “We’ve heard enough talk. It’s time for action. Let’s finish the job for him, vote yes on the bill.” More

  • in

    Trump’s tax-and-spending bill passes Congress in major win for president

    The US House of Representatives passed Donald Trump’s sweeping tax and spending bill on Thursday, handing the president the first major legislative victory of his second term and sending to his desk wide-ranging legislation expected to supercharge immigration enforcement and slash federal safety net programs.The 218-214 vote came after weeks of wrangling over the measure that Trump demanded be ready for his signature by Friday, the Independence Day holiday. Written by his Republican allies in Congress and unanimously rejected by Democrats, the bill traveled an uncertain road to passage that saw multiple all-night votes in the House and Senate and negotiations that lasted until the final hours before passage. Ultimately, Republicans who had objected to its cost and contents folded, and the bill passed with just two GOP defections: Thomas Massie, a rightwing Kentucky lawmaker, and Brian Fitzpatrick, who represents a Pennsylvania district that voted for Kamala Harris in last year’s election.“We’ve waited long enough, some of us have literally been up for days now, but this day – this day – is a hugely important one in the history of our nation,” the Republican House speaker, Mike Johnson, said, just before voting began.“With one big, beautiful bill, we are going to make this country stronger, safer and more prosperous than ever before, and every American is going to benefit from that.”The legislation is expected to speed up and expand Immigration and Customs Enforcement deportations, and will probably make Trump’s longstanding desire for a wall along the border with Mexico a reality.It also strikes a blow against the US government’s efforts to fight the climate crisis by phasing out tax incentives created under Joe Biden that were intended to spur investments in electric cars, wind and solar power and other green energy technologies.The bill’s centerpiece is a permanent extension of tax cuts made in 2017, during Trump’s first term, as well as the creation of new, temporary exemptions for tips, overtime pay and car loan interest that the president promised voters during last year’s campaign.The government will lose trillions of dollars in revenue from those provisions, and to offset their costs, Republicans approved an array of cuts to Medicaid, the federal program providing health insurance coverage to poor and disabled Americans, and the Supplemental Nutrition Assistance Program (Snap).Those changes are expected to cost millions of people their benefits, but the bill remains expensive, with the non-partisan Congressional Budget Office (CBO) saying it will add $3.3tn to the country’s debt through 2034.Massie explained his decision to vote against the bill in a post on X, writing that “it will significantly increase U.S. budget deficits in the near term, negatively impacting all Americans through sustained inflation and high interest rates”.Fitzpatrick issued a statement saying “it was the Senate’s amendments to Medicaid, in addition to several other Senate provisions, that altered the analysis” for his district and made him vote no.Democrats blasted the proposal as “one big, ugly bill” that dismantles anti-poverty programs to fund tax breaks for the wealthy. Analyses have shown that high earners benefited most from Trump’s tax policies.The Democratic House minority leader, Hakeem Jeffries, made a last-ditch effort to halt the bill’s passage by delivering a floor speech that lasted eight hours and 44 minutes, the longest ever.“This is extraordinary. This assault on everyday Americans, assault on children, veterans, seniors, people with disabilities. It’s incredible to me, all of this in this one, big, ugly bill,” Jeffries said.“Ripping food out of the mouths of vulnerable Americans – that’s extraordinary that that’s what we’re doing, extraordinary. And all of this is being done, this unprecedented assault on everyday Americans, is being unleashed on the American people, Mr Speaker, on the most vulnerable among us, all of this is being done to provide massive tax breaks to billionaire donors. Shame on this institution. If this bill passes, that’s not America. We’re better than this.”Trump has described the bill as crucial to the success of his second term, and congressional Republicans made its passage their top priority. It was a tall task – the GOP won small majorities in both the House and Senate in last November’s election, and could afford no more than three defections in either chamber.The party’s lawmakers broadly support Trump but were divided on a host of other issues. There were lawmakers who wanted big spending cuts, rapid phase-outs of green energy incentives and an expanded deduction that would mostly benefit taxpayers in Democratic-led states. Their demands butted against others who sought to moderate the bill, but over the course of weeks, Republicans leaders managed to forge a compromise.Trump appears to have also offered some concessions to hard-line holdouts from the Republican House freedom caucus at a meeting at the White House on Wednesday and in subsequent discussions, as his advisers rushed to ensure the bill passed without returning to the Senate.The details of Trump’s concessions – possibly coming in the form of executive actions at a later date – were not immediately clear, and House freedom caucus chair Andy Harris declined to describe their discussions with Trump.“When we looked at this entire package, the significant agreements we got with the administration in the last 24 hours made this package a much, much better package,” Harris told reporters after the vote. “The agreement is with the president. If you want to know, ask the president.”The bill is only able to affect revenue, spending and the debt limit, under the rules of budget reconciliation that allowed the GOP to avoid a filibuster by Democrats in the Senate. Under Biden, Congress’s then Democratic majority had used the same procedure to pass legislation to spur the economy’s recovery from the Covid-19 pandemic and curb US carbon emissions.Trump’s bill allocates $45bn for Ice detention facilities, $14bn for deportation operations and billions of dollars more to hire 10,000 new agents by 2029. An additional $50bn will go towards the border wall and other fortifications.Enrollees of Medicaid and Snap will face new work requirements, and states will be forced to share part of the cost of the latter program for the first time ever. The CBO estimates the bill’s Medicaid changes could cost as many as 11.8 million people their healthcare, and the left-leaning Center on Budget and Policy Priorities forecasts about 8 million people, or one in five recipients, may lose their Snap benefits.The legislation also forces changes to provider taxes, which states use to finance their share of Medicaid spending. That is expected to further increase the financial stress of hospitals in rural areas, and when the bill was in the Senate, a $50bn fund was added to support those facilities.Some in the GOP were openly nervous about the cuts to safety net programs that their constituents rely on. Thom Tillis, a senator who represents swing state North Carolina, refused to support the bill for those reasons, leading Trump to announce he would support a primary challenger when he stands for re-election next year. Tillis then made public his plans to retire, a potential boost for Democrats’ hopes of claiming his seat.“It is inescapable this bill will betray the promise Donald Trump made,” Tillis said on the Senate floor.“What do I tell 663,000 people in two years or three years when President Trump breaks his promise by pushing them off of Medicaid because the funding’s not there any more, guys?” More

  • in

    House set to vote on Trump’s big bill as Johnson vows to ‘get it over the line’

    Donald Trump’s signature tax-and-spending bill is hanging in the balance as Republicans struggle to muster sufficient votes in the US House of Representatives.A five-minute procedural vote remained open and tied for more than an hour on Wednesday as Republican leaders told members they could leave the floor, suggesting they still do not have the numbers they need.Trump, JD Vance and the House speaker, Mike Johnson, had spent much of the day trying to pressure conservatives to support the bill despite changes made by the Senate.A preliminary motion on the sweeping tax-and-spending bill did gain approval on party lines with 214 in favor and 212 against, setting the stage for another vote later on Wednesday afternoon to adopt the rule. If that is successful, the chamber will debate the bill, then vote on its final passage.But with the House at a standstill, the timing of the all-important rule vote was uncertain. “Either you vote on the rule or you go home,” said the conservative Tennessee representative Tim Burchett as he exited the Capitol.The Senate passed the bill, with Vance casting the tie-breaking vote, on Tuesday, after a record-setting all-night session. Now the chambers must reconcile their versions: the sprawling mega-bill goes back to the House, where Johnson has said the Senate “went a little further than many of us would have preferred” in its changes, particularly to Medicaid, a program that provides healthcare to low-income and disabled Americans.But the speaker vowed to “get that bill over the line”. Trump has set a Fourth of July deadline for Congress to send the bill to his desk.According to CNN, Johnson told reporters: “When you have a piece of legislation that is this comprehensive and with so many agenda items involved, you’re going to have lots of different priorities and preferences among people because they represent different districts and they have different interests.“But we can’t make everyone 100% happy. It’s impossible. This is a deliberative body. It’s a legislative process. By definition, all of us have to give up on our personal preferences. [I’m] never going to ask anybody to compromise core principles, but preferences must be yielded for the greater good, and that’s what I think people are recognizing and come to grips with.”Early on Wednesday morning, the House rules committee advanced the measure, sending it to the floor for consideration. On their way into the Capitol, two conservative Republicans signaled optimism that the bill would get through the House.Congresswoman Nancy Mace told reporters: “I think these votes will take a little bit or a lot longer than usual. But that’s Washington. You guys are watching how the sausage is made, and that’s how business is run.”Like several other members, Mace wound up driving from her South Carolina district to Washington after a flurry of thunderstorms yesterday prompted major flight delays and cancellations around the capital.Smoking a cigar, Congressman Troy Nehls of Texas said: “There’s things in the bill I don’t like, but would I change the bill because I didn’t get what I wanted? I don’t think that would be good for America.”The House approved an initial draft of the legislation in May by a single vote, overcoming Democrats’ unanimous opposition. But many fiscal conservatives are furious over cost estimates that project the Senate version would add even more to the federal deficit than the House-passed plan.But Johnson’s wafer-thin Republican majority risks losing decisive votes from rightwing fiscal hardliners demanding steep spending cuts, moderates wary of dismantling safety-net programs and Republicans from Democratic-led states expected to make a stand on a contentious tax provision. Any one of these groups could potentially derail the bill’s passage through a chamber where the GOP can afford to lose no more than three votes.Trump celebrated the Senate’s passage of the bill as “music to my ears”. He has described the bill as crucial to his second-term agenda, and congressional Republicans made it their top priority.The non-partisan Congressional Budget Office estimates that the bill in its current form would add $3.3tn to the US budget deficit through 2034.It will extend tax cuts enacted during the president’s first term in 2017, and includes new provisions to cut taxes on tips, overtime and interest payments for some car loans. It funds Trump’s plans for mass deportations by allocating $45bn for Immigration and Customs Enforcement detention facilities, $14bn for deportation operations and billions of dollars more to hire an additional 10,000 new agents by 2029.It also includes more than $50bn for the construction of new border fortifications, which will probably include a wall along the border with Mexico.To satisfy demands from fiscal conservatives for cuts to the US’s large federal budget deficit, the bill imposes new work requirements on enrollees of Medicaid. It also imposes a limit on the provider tax states use to fund their program, which could lead to reductions in services. Finally, it sunsets some incentives for green-energy technologies created by Congress under Joe Biden.In a floor speech on Wednesday, Alexandria Ocasio-Cortez, a Democrat from New York, warned: “This bill is a deal with the devil. It explodes our national debt. It militarizes our entire economy, and it strips away healthcare and basic dignity of the American people.“For what? To give Elon Musk a tax break and billionaires, the greedy, taking of our nation. We cannot stand for it and we will not support it. You should be ashamed.”Speaker emerita Nancy Pelosi said of the policy bill: “Well, if beauty is in the eye of the beholder, then you, GOP, you have a very blurred vision of what America is about.“Is it beautiful to cut off food from seniors and children? Is it beautiful to cut off 17 million people from healthcare? Is it beautiful to do this? To give tax cuts to billionaires in our country? Is it beautiful to take money from education and the rest? The list goes on and on.” More

  • in

    Trump announces $1,000 government-funded accounts for American babies

    Donald Trump unveiled a federal program Monday providing $1,000 government-funded investment accounts for American babies, getting big time backing from top business leaders who plan to contribute billions more to an initiative tied to “the big beautiful bill”.At a White House roundtable with over a dozen CEOs, including from Uber, Goldman Sachs and Dell Technologies, Trump relayed the details of “Trump accounts” – tax-deferred investment accounts tracking stock market performance for children born between 2025 and 2029.“For every US citizen born after December 31, 2024, before January 1, 2029, the federal government will make a one-time contribution of $1,000 into a tax-deferred account that will track the overall stock market,” Trump said.The accounts will be controlled by guardians and allow additional private contributions up to $5,000 annually. Trump called it “a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation”.CEOs from major companies including Michael Dell, Dara Khosrowshahi of Uber, David Solomon of Goldman Sachs, and Vladimir Tenev of Robinhood committed billions for employees’ children’s accounts. Trump praised the executives as “really the greatest business minds we have today” who are “committed to contributing millions of dollars to the Trump account”.Mike Johnson, the House speaker, also at the roundtable, championed the program, saying: “It’s a bold, transformative policy that gives every eligible American child a financial head start from day one. Republicans are proud to be the party we always have been. It supports life and families, prosperity and opportunity.”The program passed the House as part of a massive budget bill but faces stiffer Senate Republican resistance over the broader package. The accounts cannot be implemented as a standalone program and depend entirely on passage of what Trump calls the “one big, beautiful bill” that is “among the most important pieces of legislation in our country’s history”, claiming it’s “fully funded through targeted reforms” including welfare changes and a proposed remittance tax.However, the congressional budget office last week found the bill would also add $2.4tn to the national debt over the next decade while cutting Medicaid and food assistance programs. The CBO analysis showed the bill, which passed the House by a single vote and no Democratic support, would leave 10.9 million more Americans without healthcare by 2034.The treasury-funded accounts, previously called “Maga ccounts” resemble existing 529 college plans but with lower contribution limits – leading some financial advisers to say the Trump accounts may not offer the best investment incentives.The move is also not without precedent the United Kingdom operated a similar Child Trust Fund with government seed funding from 2002-2011 before discontinuing the program, while Singapore runs the Baby Bonus Scheme that includes government-matched savings accounts for children.Trump was optimistic about returns, saying beneficiaries would “really be getting a big jump on life, especially if we get a little bit lucky with some of the numbers and the economies into the future”.Johnson warned that failure to pass the legislation would result in “the largest tax increase in American history” and pushed for swift congressional action on what he called “pro-growth legislation” that would “help every single American”. More

  • in

    Trump and Musk trade barbs as rift over tax and spend bill erupts into open

    A public feud erupted between Donald Trump and Elon Musk on Thursday, with the president saying he was “very disappointed” by the former adviser’s opposition to his top legislative priority, and Musk firing back that Trump would not have won election without his financial support.The falling-out came days after Musk had stepped down as head of Trump’s “department of government efficiency” (Doge) and then pivoted to attacking the One Big Beautiful Bill, which would extend tax cuts, fund beefed-up immigration enforcement and impose new work requirements for enrollees of federal safety net programs.While the Tesla CEO has focused his complaints on the price tag of the bill, which the non-partisan Congressional Budget Office estimates will add $2.4tn to the deficit over the next decade, Trump accused him of turning against it because of provisions revoking incentives for consumers to purchase electric vehicles.“I’m very disappointed in Elon. I’ve helped Elon a lot,” Trump said, adding that “he knew every aspect of this bill. He knew it better than almost anybody, and he never had a problem until right after he left.”“Look, Elon and I had a great relationship. I don’t know if we will any more,” the president said.Musk responded almost immediately on X, saying that the president’s comment was “false”, and “this bill was never shown to me even once”. He then pivoted to personal attacks on Trump, after praising him just days earlier in an Oval Office appearance to mark the end of his time leading Doge.“Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate,” he said, responding to a video of Trump’s remarks. “Such ingratitude.”The tech boss’s criticism has become the latest obstacle facing the One Big Beautiful Bill , which the House of Representatives approved last month by a single vote.The Senate this week began considering the bill, not long after Musk commenced the barrage of tweets over its cost, which he warned would undo Doge’s efforts to save the government money by cancelling programs and pushing federal workers out of their jobs. Musk said he believed the initiative could reduce spending by $1tn, though its own dashboard shows it has saved less than 20% of that amount since Trump was inaugurated.The House speaker, Mike Johnson, spent weeks negotiating with his fractious Republican majority to get the bill passed narrowly through his chamber, and on Wednesday said he had been trying to speak with Musk about his concerns. In an interview with Bloomberg TV on Thursday, he called the Tesla CEO “a good friend” and said the two had exchanged text messages ahead of a call he expected to take place that morning.View image in fullscreen“I just want to make sure that he understands what I think everybody on Capitol Hill understands. This is not a spending bill, my friends, this is a a budget reconciliation bill. And what we’re doing here is delivering the America first agenda,” Johnson said.“He seems pretty dug in right now, and I can’t quite understand the motivation behind it,” the speaker added.Later in the day, Johnson told reporters at the Capitol that the call did not take place, but that the disagreement “isn’t personal”. On X, Musk publicly questioned Johnson’s resolve to cut government spending, prompting the speaker to reply that he “has always been a lifelong fiscal hawk”.The Senate’s Republican leaders have shown no indication that they share Musk’s concerns. Instead, they are eyeing changes to some aspects of the measure that were the result of hard-fought negotiations in the House, and could throw its prospects of passage into jeopardy.One issue that has reappeared is the deductibility of state and local tax (Salt) payments, which the tax bill passed under Trump in 2017 limited to $10,000 per household. House Republicans representing districts in Democratic-run states that have higher tax burdens managed to get a provision increasing the deduction to $40,000 into the One Big Beautiful Bill act.But there are almost no Republican senators representing blue states. The majority leader, John Thune, said after a meeting with Trump on Wednesday that his lawmakers were not inclined to keep that provision as they negotiate the bill.“We also start from a position that there really isn’t a single Republican senator who cares much about the Salt issue. It’s just not an issue that plays,” Thune said.That could upset the balance of power in the House, where Republicans can lose no more than three votes on any bill that passes along party lines. More

  • in

    Senate Democrats to mark Trump’s ‘100 days from hell’ with marathon speeches

    Democratic senators will on Tuesday mark Donald Trump’s 100th day in office with marathon floor speeches intended to highlight his administration’s failures, seizing on his divisive tariff policy and attacks on the judiciary to argue he was not joking when he mulled governing as “a dictator”.Republicans, meanwhile, praised the president’s actions over the first 100 days, though the House speaker, Mike Johnson, acknowledged “some bumps along the road” he described as the necessary byproduct of the radical changes Trump campaigned on.The 100-day milestone has given Trump’s allies and enemies alike in Congress an opportunity to reflect on his presidency, which Democrats, confined to the minority in both the Senate and House of Representatives at least through next year, argue has accomplished little besides haphazardly dismantling important federal agencies and rendering precarious a previously robust economy.“Donald Trump’s first 100 days have been 100 days from hell,” said Chuck Schumer, the Democratic Senate minority leader.“Donald Trump is not governing like a president of a democratic republic. He’s acting like a king, a despot, a wannabe dictator. Remember that during the campaign, he indicated that he’d be a dictator just on day one. But everything we’ve seen so far shows he wants to be a dictator for much, much longer.”Democrats are looking to regain their popular support after underperforming in November, when voters nationwide sent Trump back to the White House with Republicans in full control of Congress.Earlier this month, New Jersey’s Cory Booker spent 25 hours on the Senate floor condemning Trump in a record-breaking speech, while on Sunday, Booker and the top House Democrat, Hakeem Jeffries, were out for more than 12 hours on the Capitol steps, condemning the GOP’s plans for a huge bill that will extend tax cuts and pay for mass deportations, potentially by cutting social safety net programs.The tactics have been compared to those of the civil rights and other protest movements, and on Tuesday, Schumer said Democrats would hold the Senate floor “until late tonight to mark these dismal 100 days by speaking the truth”.“What is the truth? The truth is this: no president in modern history has promised more on day one and delivered less by day 100 than Donald Trump. In record time, the president has turned a golden promise into an economic ticking timebomb. It’s getting worse every day, and he calls it progress.”Republicans have taken the opposite view of Trump’s record, promoting his moves to ban diversity initiatives in the government and elsewhere, crack down on transgender rights, block immigrants from crossing the border and attempt to step up deportations as “promises made, promises kept”.“We’re just getting started, and that’s one of the reasons that we’re so excited,” Johnson told reporters.But opinion surveys have found that Trump’s approval rating has sunk into the negative at a point earlier than his Democratic predecessor, Joe Biden, whose presidency wound up mired in public discontent. The plunge in popularity for a president who just over five months ago became the first Republican to win the popular vote in two decades is viewed as a consequence of his disruptive approach to implementing tariffs, and his administration’s attacks on a judiciary that has sought to temper some of his policies.“There’s some bumps along the road. I mean, we’re changing everything,” Johnson replied, when asked about the president’s approval ratings.“The last four years was an absolute unmitigated disaster, and we got to fix it all. So when you’re doing that, it’s disruptive in a way.” More