On The Money: Senate passes disaster aid bill after deal with Trump | Trump administration announces B aid package for farmers | Study: New Trump tariffs double costs to consumers, lower tax revenue
Happy Thursday and welcome back to On The Money, where we love a little bit of storm-related irony so long as no one gets hurt. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.
THE BIG DEAL— Senate passes disaster aid bill after deal with Trump: The Senate easily cleared a long-stalled disaster aid package after Republicans reached a deal with President TrumpDonald John TrumpFeinstein, Iranian foreign minister had dinner amid tensions: report The Hill’s Morning Report – Trump says no legislation until Dems end probes Harris readies a Phase 2 as she seeks to rejuvenate campaign MORE to drop border-related provisions from the bill.
Senators voted 85-8 on the legislation, which provides $ 19.1 billion in recovery money for a recent slate of wildfires, hurricanes and storms. GOP Sens. Marsha BlackburnMarsha BlackburnHillicon Valley: Google delays cutting off Huawei | GOP senators split over breaking up big tech | Report finds DNC lagging behind RNC on cybersecurity GOP senators split over antitrust remedies for big tech Graham warns of 5G security threat from China MORE (Tenn.), Mike BraunMichael BraunPence, McConnell eulogize Sen. Richard Lugar GOP senators propose congressional term limits Bipartisan senators introduce bill to fix problem of teacher debt MORE (Ind.), Mike CrapoMichael (Mike) Dean CrapoTrump, Senate GOP discuss effort to overhaul legal immigration Dems propose fining credit agencies for data breaches Mueller fails to break stalemate on election meddling crackdown MORE (Idaho), Mike LeeMichael (Mike) Shumway LeeHillicon Valley: Google delays cutting off Huawei | GOP senators split over breaking up big tech | Report finds DNC lagging behind RNC on cybersecurity GOP senators split over antitrust remedies for big tech Fix the climate with smaller families MORE (Utah), Martha McSallyMartha Elizabeth McSallyOvernight Defense: Trump officials say efforts to deter Iran are working | Trump taps new Air Force secretary | House panel passes defense bill that limits border wall funds Trump taps new Air Force secretary Bolton emerges as flashpoint in GOP debate on Iran MORE (Ariz.), Rand PaulRandal (Rand) Howard PaulRand Paul splits with Amash on Trump impeachment The Go-Go’s rock the stage at annual ‘We Write the Songs’ DC concert GOP presses Trump to make a deal on spending MORE (Ky.), Jim RischJames (Jim) Elroy RischOvernight Defense: Iran worries dominate foreign policy talk | Pentagon reportedly to send WH plans for 10K troops in Mideast | Democrats warn Trump may push through Saudi arms sale | Lawmakers blast new Pentagon policy on sharing info Democrats warn Trump may soon push through Saudi arms sale Trump, Europe increasingly at odds on Iran MORE (Idaho) and Mitt RomneyWillard (Mitt) Mitt RomneyIraq War looms over Trump battle with Iran Alabama state senator introduces bill to repeal state’s abortion ban Overnight Health Care — Presented by PCMA — McConnell, Kaine offer bill to raise tobacco buying age to 21 | Measles outbreak spreads to 24 states | Pro-ObamaCare group launches ad blitz to protect Dems MORE (Utah) voted against the bill.
The House has already left for the weeklong Memorial Day recess. But a Democratic leadership aide said the caucus supports the measure and hopes to clear it by unanimous consent on Friday. The Hill’s Jordain Carney tells us how we got here.
- “We’ve proposed … that we come forth with a clean disaster package, a lot of things off including border security stuff, just disaster, basically. And the president said OK,” Shelby told reporters.
- The deal, according to a GOP appropriations aide, includes a total of $ 19.1 billion for disaster recovery.
Breaking down the bill:
- In a win for Democrats, it also includes $ 600 million in food stamp money for Puerto Rico and an additional $ 300 million in Housing and Urban Development (HUD) grants for the commonwealth.
- The Senate’s original disaster bill, which included only the food stamp funding, derailed after Trump criticized Puerto Rico’s handling of recovery money during a closed-door GOP lunch. Lawmakers acknowledged earlier this week that they had finalized that portion of the package.
LEADING THE DAY
Trump administration announces $ 16B aid package for farmers hurt by trade war with China: The assistance will provide direct payments to help farmers make up for losses resulting from retaliatory tariffs Beijing imposed on major U.S. crops. Limited access to China’s market has helped drive down the price of agricultural commodities since the collapse of trade talks earlier this month.
- Beijing increased tariffs on $ 60 billion in U.S. goods in response to Trump’s decision to raise tariffs on $ 250 billion in Chinese imports to 25 percent.
- The program is similar to a $ 12 billion aid package Trump approved last year amid heightened trade tensions with China.
- It is expected to last through the rest of the year, with the first batch of payments sent out in late July or early August. The president had previously said tariff revenue would help fund the aid package but the program as described by the Agriculture Department is not expected to directly use money collected from tariffs.
“President Trump has great affection for America’s farmers and ranchers, and he knows they are bearing the brunt of these trade disputes,” Agriculture Secretary Sonny PerdueGeorge (Sonny) Ervin PerdueUSDA relocates expert economists, researchers who challenge Trump policies: report Gov. Kemp vetoed school recess bill in Georgia — it’s irresponsible and neglects children’s needs On The Money: Judge upholds House subpoena for Trump financial records | Trump vows to appeal ruling by ‘Obama-appointed judge’ | Canada, Mexico lift retaliatory tariffs on US | IRS audit rate falls MORE said in a statement. “In fact, I’ve never known of a president that has been more concerned or interested in farmer wellbeing and long-term profitability than President Trump.”
New Trump tariffs double costs to consumers, lower tax revenue, study shows:
President Trump’s latest tariff increases on Chinese imports brought the annual cost of import taxes to $ 831 per household, according to a study on the New York Federal Reserve’s blog.
The study by Mary Amiti, Stephen J. Redding, and David E. Weinstein found Trump’s decision to increase tariffs on $ 200 billion of Chinese imports from 10 percent to 25 percent doubles the cost to American households compared to all his previous tariffs.
The increased cost to consumers amounts to $ 106 billion a year.
But the higher tariffs could actually lead to a drop in revenue for the Treasury Department, because the price increase is large enough to push consumers to buy alternative offerings from countries such as Vietnam.
“According to our estimates, these higher tariffs are likely to create large economic distortions and reduce U.S. tariff revenues,” the authors concluded. The Hill’s Niv Elis breaks down the study here.
Drink up: The trade war is also bad news for the brews: A study by the Beer Institute and National Beer Wholesalers Association found that direct, indirect and induced jobs dropped to 2.19 million in 2018 from 2.23 million in 2016, according to Bloomberg News, and insiders say Trump’s steel and aluminum tariffs are the cause.
GOOD TO KNOW:
- Two House Appropriations subcommittees on Thursday passed spending bills that defy President Trump’s requests to slash spending on agriculture, transportation and housing.
- The Dow Jones Industrial Average plunged 375 points, or 1.4 percent, in the opening hour of trading Thursday morning, amid fears that President Trump’s trade war with China is escalating. It closed with a loss of 286 points.
- JPMorgan Chase, the largest bank in the United States by assets, will reportedly no longer offer its services to OxyContin producer Purdue Pharma over the company’s alleged role in the country’s opioid crisis.
ODDS AND ENDS
- A top Huawei official said Thursday that the company will have its own operating system ready to replace Google and Microsoft smartphone and laptop software if permanently blocked from licensing the American products.
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More at https://thehill.com/policy/finance/overnights/445328-on-the-money-senate-passes-disaster-aid-bill-after-deal-with-trump