WASHINGTON: Senators are working through the weekend for the first time since the government shutdown began more than a month ago, hoping to find a bipartisan resolution that has eluded them as federal workers have gone unpaid, airlines have been forced to cancel flights and SNAP benefits have been delayed for millions of Americans.
As Saturday’s session got underway, it was uncertain whether Republicans and Democrats could make any headway toward reopening the government and breaking a partisan impasse that has now lasted 39 days.
President Donald Trump made clear he is unlikely to compromise any time soon with Democrats who are demanding an extension of Affordable Care Act tax credits, posting on social media that it is “the worst Healthcare anywhere in the world.” He suggested Congress send money directly to people to buy insurance.
Senate Majority Leader John Thune, R-S.D., said Trump’s proposal would not be part of a solution to ending the shutdown, but added “it is a discussion that the president and all of us want to have.” Thune said he planned to keep the Senate in session until the shutdown has ended and that “ideally, it would be great to set it up so we could vote today.”
Senate Republican leaders have signaled an openness to an emerging proposal from a small group of moderate Democrats to end the shutdown in exchange for a later vote on the “Obamacare” subsidies.
Sen. Jeanne Shaheen, D-N.H., who is leading the talks among moderates, said Friday evening that Democrats “need another path forward” after Republicans rejected an offer from Democratic leader Chuck Schumer of New York to reopen the government and extend the subsidies for a year. “We’re working on it,” she said.
Moderates continue to negotiate
Shaheen and others, negotiating among themselves and with some rank-and-file Republicans, have been discussing bills that would pay for parts of government — food aid, veterans programs and the legislative branch, among other things — and extend funding for everything else until December or January. The agreement would only come with the promise of a future health care vote, rather than a guarantee of extended subsidies.
It was unclear whether enough Democrats would support such a plan. Even with a deal, Trump appears unlikely to support an extension of the health benefits. House Speaker Mike Johnson, R-Louisiana, also said this week that he would not commit to a health vote.
Republican leaders only need five additional votes to fund the government, and the group involved in the talks has ranged from 10 to 12 Democratic senators.
Some Republicans have said they are open to extending the COVID-19-era tax credits as premiums could skyrocket for millions of people, but they want new limits on who can receive the subsidies. They lined up Saturday to take to the Senate floor and argue that subsidies for the plans should be routed through individuals.
“We’re going to replace this broken system with something that is actually better for the consumer,” said Sen. Lindsey Graham, R-S.C.
Republicans eye new package of bills
Trump wants Republicans to end the shutdown quickly and scrap the filibuster, which requires 60 Senate votes for most legislation, so they can bypass Democrats altogether. Vice President JD Vance, a former Ohio senator, endorsed the idea in an online post Saturday, saying Republicans who want to keep the filibuster are “wrong.”
Republicans have rejected Trump’s call, and Thune is eyeing a bipartisan package that mirrors the proposal the moderate Democrats have been sketching out. What Thune, who has refused to negotiate, might promise on health care is unknown.
The package would replace the House-passed legislation that the Democrats have rejected 14 times since the shutdown began Oct. 1. The current bill would only extend government funding until Nov. 21, though senators indicated their version would likely go through January.
A choice for Democrats
A test vote on new legislation could come in the next few days if Thune decides to move forward.
Then Democrats would have a crucial choice: Keep fighting for a meaningful deal on extending the subsidies that expire in January, while prolonging the pain of the shutdown? Or vote to reopen the government and hope for the best as Republicans promise an eventual health care vote, but not a guaranteed outcome.
Schumer on Saturday persisted in arguing that Republicans should accept a one-year extension of the subsidies before negotiating the future of the tax credits.
“Doing nothing is derelict because people will go bankrupt, people will lose insurance, people will get sicker,” Schumer said in a floor speech. “That’s what will happen if this Congress fails to act.”
Earlier, Vermont Sen. Bernie Sanders, an independent who caucuses with the Democrats, said they need to stand strong after overwhelming Democratic victories on Election Day.
Trump signals no shutdown compromise with Democrats as senators hold a rare weekend session
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Trump signals no shutdown compromise with Democrats as senators hold a rare weekend session
- Senate Republican leaders have signaled an openness to an emerging proposal from a small group of moderate Democrats to end the shutdown in exchange for a later vote on the “Obamacare” subsidies
Trump cuts India tariffs as Modi ‘agrees’ to stop buying Russian oil
- US will impose an 18 percent tariff on Indian goods, down from the earlier 50 percent punitive levy
- Withdrawal from Russian oil may affect India’s relations with BRICS, expert says
NEW DELHI: The US and India have announced reaching a trade agreement after months of friction, with President Donald Trump saying that Prime Minister Narendra Modi had “agreed” to halt purchases of Russian oil.
In August, Trump accused India, which imports most of its crude oil, of funding Moscow’s war in Ukraine and subjected it to a combined tariff rate of about 50 percent on most of the exports.
Following a call with Modi on Monday, Trump took to social media to say that he would cut with immediate effect US levies on Indian goods to 18 percent after Modi “agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela.”
At the same time, India, Trump wrote, would “reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO,” committing to buy “over $500 BILLION DOLLARS of US Energy, Technology, Agricultural, Coal, and many other products.”
Modi confirmed the agreement on social media, saying: “Made in India products will now have a reduced tariff of 18 percent,” without commenting on Russian oil or duty-free imports of American goods.
When the US announced its punitive tariffs last year, India quickly moved forward with free trade negotiations with other countries — signing a deal with Oman and finalizing negotiations with New Zealand and the EU.
While the agreements were expected to partially offset the loss of exports to the US, economists did not expect they would immediately mitigate it, as shifting supply chains takes time.
The newly announced agreement with the US will therefore offer short-term relief for Indian exporters — especially of textiles, gems, jewelry and marine products — who were facing the threat of a market exit.
“In that case, the trade deal with the US is a welcome step. It provides short-term relief, allowing India to continue exporting to the US without being forced to exit the US market and diversify with a huge transition cost,” said Anisree Suresh, geoeconomics researcher at the Takshashila Institution.
“However, one shouldn’t look at it as a comprehensive long-term trade deal like the one India signed with the EU. The unpredictability of the Trump administration remains a major concern, regardless of whether there is a trade deal with the US ... India cannot treat this deal the same as other FTAs, as it is limited in scope and subject to reversal.”
When the US imposed its punitive tariffs on India, about 66 percent of total Indian exports were subject to that rate. Overall, India recorded a negative margin of 19.5 percent, meaning its exports were taxed more heavily than those of its competitors.
“From that point of view, Indian goods will have a larger market over there. However, there’s a problem when we talk about a 0 percent tariff on the US,” said Prof. Arun Kumar, a development economist.
“The US will be able to export a lot more to India, and therefore it will affect our production within the economy. And that will be a setback, so while exports may rise, the internal economy may actually suffer because of this decrease in tariffs on American goods. And especially if it affects agriculture.”
The sudden withdrawal from India’s partnership with Russia may not have a serious economic impact but politically could affect New Delhi’s relations, also with other countries, especially those from BRICS — a grouping that besides India and Russia includes also Brazil and China, and is the most powerful geopolitical forum outside of the Western world.
“You can always substitute Russian oil with some other oil, but I think it’s more of a strategic question, because India and Russia have had long-standing relationships, and if we bend to US pressure and reduce purchases from Russia, then it will affect in future also our relationship with Russia, because we will not be seen as a stable ally,” Kumar said.
“BRICS nations will not trust India very much in the future ... and that’s what Trump wants. He wants to disrupt BRICS. That’s what he has been doing right since the beginning to divide nations and deal with them individually.”
