Former Equifax chief will face questions from U.S. Congress over hack

FILE PHOTO: Credit reporting company Equifax Inc. corporate offices are pictured in Atlanta, Georgia, U.S., September 8, 2017. REUTERS/Tami Chappell/File Photo

By John McCrank and David Shepardson

WASHINGTON (Reuters) – U.S. lawmakers are due to question the former head of Equifax Inc <EFX.N> at a Tuesday hearing that could shed light on how hackers accessed the personal data of more than 140 million consumers.

Richard Smith retired last week but the 57-year-old executive will answer for the breach that the credit bureau acknowledged in early September.

Late Monday, Equifax said an independent review had boosted the number of potentially affected U.S. consumers by 2.5 million to 145.5 million.

In March, the U.S. Homeland Security Department alerted Equifax to an online gap in security but the company did nothing, said Smith.

“The vulnerability remained in an Equifax web application much longer than it should have,” Smith said in remarks prepared for delivery on Tuesday. “I am here today to apologize to the American people myself.”

Smith will face the House Energy and Commerce Committee on Tuesday but there will be three more such hearings this week.

Equifax keeps a trove of consumer data for banks and other creditors who want to know whether a customer is likely to default.

The cyber-hack has been a calamity for Equifax which has lost roughly a quarter of its stock market value and seen several top executives step down alongside Smith.

Smith’s replacement, Paulino do Rego Barros Jr., has also apologized for the hack and said the company will help customers freeze their credit records and monitor any misuse.

There has been a public outcry about the breech but no more than 3.0 percent of consumers have frozen their credit reports, according to research firm Gartner, Inc.

Smith said hackers tapped sensitive information between mid-May and late-July.

Security personnel noticed suspicious activity on July 29 and disabled web application a day later, ending the hacking, Smith said. He said he was alerted the following day, but was not aware of the scope of the stolen data.

On Aug. 2, the company alerted the FBI and retained a law firm and consulting firm to provide advice. Smith notified the board’s lead director on Aug. 22.

(Patrick Rucker contributed from Washington; editing by Clive McKeef.)

Applause, laughter as wounded lawmaker Scalise returns to Congress

U.S. Rep Steve Scalise (R-LA) is applauded as he arrives in the House chamber after returning to Congress for the first time since being shot and seriously wounded in June. U.S. House TV/Handout via Reuters

By Patricia Zengerle and Richard Cowan

WASHINGTON (Reuters) – Members of the U.S. House of Representatives put bitter party divisions aside for a long standing ovation on Thursday as Representative Steve Scalise returned for the first time since he was shot and wounded in June.

Leaning on a cane but walking on his own, Scalise, 51, entered a packed House chamber to applause and loud cheers from his fellow members of Congress.

“You have no idea how great this feels to be back here at work in the people’s House,” said Scalise, the No. 3 Republican in the chamber, standing at a desk in the Republican section after he was greeted with hugs and high-fives from members of his own party and Democrats.

He thanked the Capitol police officers he credited with saving his life, world leaders who had contacted him and members of his medical team, who were sitting in the crowded visitors gallery overlooking the House floor.

House Speaker Paul Ryan’s voice cracked as he introduced Scalise. “The chair wishes to mark the return of our dear friend and colleague from Louisiana, Mr. Steve Scalise,” Ryan said. “Our prayers have been answered.”

Scalise gave an emotional speech, interrupted by frequent applause, thanking his family and referring to innate optimism he partly attributed to being from Louisiana, referring to the attitude of “joie de vivre” (joy of life) in a state with a heavy French influence.

“When I come back into this chamber today, just seeing the faces of all of you, it just means more than you can imagine,” Scalise said.

Scalise was among Republican lawmakers attacked June 14 in the Washington suburb of Alexandria, Virginia, by a gunman who opened fire on them while they were practicing for a charity baseball game against Democrats.

He underwent repeated surgeries before being released from the hospital in late July.

Scalise was shot in the hip by a gunman who had a history of posting angry messages against Republican President Donald Trump.

(Reporting by Patricia Zengerle; Editing by Dan Grebler)

Facebook, Google, Twitter asked to testify on Russian meddling

The Twitter application is seen on a phone screen August 3, 2017. REUTERS/Thomas White

By Dustin Volz and Patricia Zengerle

WASHINGTON (Reuters) – Executives from Facebook, Alphabet Inc’s Google and Twitter have been asked to testify to the U.S. Congress in coming weeks as lawmakers probe Russia’s alleged interference in the 2016 U.S. election, committee sources said on Wednesday.

A Senate aide said executives from the three firms had been asked by the Senate Intelligence Committee to appear at a public hearing on Nov. 1.

The leaders of the House of Representatives Intelligence Committee said the panel would hold an open hearing next month with representatives from unnamed technology companies in an effort to “better understand how Russia used online tools and platforms to sow discord in and influence our election.”

Representatives for Facebook and Google confirmed they had received invitations from the Senate committee but did not say whether the companies would attend. Twitter did not immediately respond to requests for comment.

The House panel did not immediately identify any companies, but a committee source said lawmakers expected to hear from the same three firms the Senate had asked to testify.

The requests are the latest move by congressional investigators to gain information from internet companies as they probe the extent of Moscow’s alleged efforts to disrupt last year’s U.S. election. Lawmakers in both parties have grown increasingly concerned that social networks may have played a key role in Russia’s influence operation.

Facebook revealed this month that suspected Russian trolls purchased more than $100,000 worth of divisive ads on its platform during the 2016 election cycle, a revelation that has prompted calls from some Democrats for new disclosure rules for online political ads.

On Wednesday, Trump attacked Facebook in a tweet and suggested the world’s largest social network had colluded with other media outlets that opposed him. The president has been skeptical of the conclusions of U.S. intelligence agencies that Russia interfered in the election and has denied his campaign colluded with Moscow.

The salvo prompted a lengthy rebuke from Facebook Chief Executive Mark Zuckerberg, who said both Trump and liberals were upset about ideas and content on Facebook during the campaign.

“That’s what running a platform for all ideas looks like,” Zuckerberg wrote on his personal Facebook page.

Other internet firms besides Facebook are also facing rising scrutiny over how Russia may have leveraged their platforms. Twitter is expected to privately brief the Senate panel on Thursday.

Republican Senator James Lankford, who has received classified information about Russia’s interference as a member of the Senate Intelligence Committee, said on Wednesday that the country’s attempts to sow discord in U.S. domestic affairs had not abated.

Russian internet trolls over the weekend fueled the debate ignited by Trump over whether NFL players should have the right to kneel during the national anthem, Lankford said.

Also on Wednesday, the Daily Beast, citing unnamed sources, reported that a Facebook group named “United Muslims of America” was a fake account linked to the Russian government and that it was used to push false claims about U.S. politicians, including Democratic presidential candidate Hillary Clinton.

The group bought Facebook ads to reach targeted audiences, promoting political rallies aimed at Muslims, the website reported.

The Senate and House intelligence committees are two of the main congressional panels probing allegations that Russia sought to interfere in the U.S. election to boost Trump’s chances at winning the White House, and possible collusion between Trump associates and Russia.

(Reporting by Patricia Zengerle and Dustin Volz, additional reporting by Paresh Dave; Editing by Peter Cooney and Andrew Hay)

Obamacare repeal in U.S. Senate collapses as Republicans falter

Protesters, mostly handicapped, line the hallway outside the Senate Finance Committee hearing room hours ahead a hearing on the latest Republican effort to repeal Obamacare on Capitol Hill in Washington, U.S., September 25, 2017. REUTERS/Kevin Lamarque

By Susan Cornwell

WASHINGTON (Reuters) – Another Republican attempt to dismantle Obamacare collapsed in the U.S. Congress on Tuesday as the party was unable to win enough support from its own senators for a bill to repeal the healthcare reform law.

Several Republican senators said there will be no vote in the Senate after some lawmakers withheld support for the measure.

“We basically ran out of time,” said Senator Ron Johnson.

Senator Pat Roberts, another Republican, told reporters the party would target healthcare “in some form” later in the current legislative session.

Failing to carry through on a 7-year-old effort to roll back the 2010 healthcare law would be an embarrassing setback for Republicans and a heavy blow for President Donald Trump, who vowed during the 2016 election campaign to scrap Obamacare.

After losing a Senate vote on repealing Obamacare in July,

Republicans tried again this month with a bill that would take

federal money and give it to the states in block grants to regulate their own healthcare systems.

But several Republican senators refused to back the latest bill, including Senator Susan Collins, who on Monday complained that it undermined the Medicaid program for the poor and disabled and weakened protections for people with pre-existing conditions, such as asthma, cancer and diabetes.

Trump said on Tuesday his administration was disappointed in “certain so-called Republicans” who did not support the bill.

Republicans hold a slim 52-48 majority in the Senate and

at least two other Republican senators, John McCain and Rand Paul, had earlier rejected the bill.

Republicans have tried for years to get rid of the Affordable Care Act, or Obamacare, but they were up against a Sept. 30 deadline to pass a bill with a simple majority, or face a much tougher path toward dismantling it.

(Reporting by Susan Cornwell and Richard Cowan; Additional reporting by Susan Heavey; Writing by Alistair Bell; Editing by Kevin Drawbaugh and Bill Trott)

U.S. weighs whether to stay in Iran nuclear deal

Iran's President Hassan Rouhani delivers remarks at a news conference during the United Nations General Assembly in New York City, U.S. September 20, 2017. REUTERS/Stephanie Keith

By Michelle Nichols and Jeff Mason

UNITED NATIONS (Reuters) – The United States said on Wednesday it is weighing whether the Iranian nuclear deal serves its security interests even as Iran said it did not expect Washington to abandon the agreement.

A collapse of the 2015 deal, which U.S. President Donald Trump has called “an embarrassment” but which is supported by the other major powers that negotiated it with Iran, could trigger a regional arms race and worsen Middle East tensions.

Iranian President Hassan Rouhani vowed that his country would not be the first to violate the agreement under which Tehran agreed to restrict its nuclear program in return for the loosening of economic sanctions that had crippled its economy.

“We don’t think Trump will walk out of the deal despite (his) rhetoric and propaganda,” Rouhani told reporters on the sidelines of the U.N. General Assembly gathering of world leaders. He also ruled out the idea of renegotiating the pact.

Trump told reporters he had made a decision on what to do about the agreement but would not say what he had decided.

Matters were no clearer after Iran and the world powers that negotiated the deal – Britain, China, France, Germany, Russia and the United States – met for talks that a European source said included a long discussion between the U.S. and Iranian foreign ministers.

It was the first time that the two men, U.S. Secretary of State Rex Tillerson and Iranian Foreign Minister Mohammad Javad Zarif, had met since Trump took office on Jan. 20.

The EU’s foreign policy chief, Federica Mogherini, said all sides believed there had been no violations to the deal but she was unable to say after the roughly hour and 20-minute meeting whether the United States would stick to it.

“We already have one potential nuclear crisis. We definitely (do) not need to go into a second one,” she told reporters, alluding to North Korea’s pursuit atomic weapons.

Asked if the United States had committed to staying in the pact, she appeared to be at a loss and said: “Another question.”

Tillerson told reporters Trump did not wish to leave the Iran nuclear issue to the next president.

“That is the reason he is very, very carefully considering the decision of whether we find the JCPOA to continue to serve the security interests of the American people or not,” he said, referring to the pact formally called the Joint Comprehensive Plan of Action.

The U.S. president, who on Tuesday called the deal “one of the worst and most one-sided transactions the United States has ever entered into,” told reporters he had made up his mind whether to keep the pact but declined to disclose his decision.

Trump must decide by Oct. 15 whether to certify that Iran is complying with the pact, a decision that could sink the deal. If he does not, the U.S. Congress has 60 days to decide whether to reimpose sanctions waived under the accord.

A senior U.S. official said Trump is leaning toward not certifying that Iran is complying with the pact and letting Congress effectively decide whether to kill the agreement.

The official said Trump could always change his mind before the deadline and noted he publicly and privately has fumed about the deal, feeling the United States was taken advantage of.

A source familiar with the U.S. discussions said the Trump administration is also considering ways to leave the agreement intact, sanction Iran for its missile tests and support for extremist groups, and then seek to strengthen the pact.

The prospect of Washington reneging on the agreement has worried some U.S. partners that helped negotiate it, especially as the world grapples with North Korea’s nuclear and ballistic missile development.

French President Emmanuel Macron told reporters it would be a mistake to pull out of the pact.

However, he also appeared to open the door for tougher action on Iran, saying the deal was insufficient given Iran’s growing regional influence since 2015.

“Is this agreement enough? No. It is not, given the evolution of the regional situation and increasing pressure that Iran is exerting on the region, and given … increased activity by Iran on the ballistic level since the accord,” he said.

Chinese Foreign Minister Wang Yi said the recent tension on the Korean peninsula underlined the importance of the Iranian deal, and that China would continue to support and safeguard it, Chinese state media said.

An official from a Gulf nation suggested that his country could accept the deal’s collapse. Should Trump either not certify Iranian compliance or withdraw from the deal entirely, the Gulf official said: “I think we can live with that.”

 

(Reporting by Yara Bayoumy, Parisa Hafezi, Steve Holland, John Irish, Michelle Nichols, Jeff Mason and Arshad Mohammed at the United Nations, Eric Beech, Mohammad Zargham, Patricia Zengerle, John Walcott and Susan Heavey in Washington, Andrew Osborn in Moscow, Babak Dehghanpisheh in Beirut and Philip Wen in Beijing.; Writing by Arshad Mohammed; Editing by Grant McCool and James Dalgleish)

 

As North Korea threat looms, Trump to address world leaders at U.N.

U.S. President Donald Trump participates in a session on reforming the United Nations at UN Headquarters in New York, U.S., September 18, 2017. REUTERS/Kevin

By Michelle Nichols

UNITED NATIONS (Reuters) – North Korea’s nuclear threat looms large this week over the annual gathering of world leaders at the United Nations in New York, where diplomats are eager to hear U.S. President Donald Trump address the 193-member body for the first time.

North Korean diplomats will have a front-row seat in the U.N. General Assembly for Trump’s speech on Tuesday morning, which will touch on the escalating crisis that has seen Trump and Pyongyang trade threats of military action.

Despite his skepticism about the value of international organizations and the United Nations in particular, Trump will seek support for tough measures against North Korea, while pressing his “America First” message to the world body.

“This is not an issue between the United States and North Korea. This is an issue between the world and North Korea,” Trump’s national security adviser, H.R. McMaster, said on Friday.

U.N. Secretary-General Antonio Guterres – who, like Trump, took office in January – plans to meet separately with “concerned parties,” including North Korean Foreign Minister Ri Yong-ho, on the sidelines of the 72nd General Assembly.

“The solution can only be political. Military action could cause devastation on a scale that would take generations to overcome,” Guterres warned on Wednesday.

A week ago, the 15-member U.N. Security Council unanimously adopted its ninth sanctions resolution since 2006 over North Korea’s nuclear and ballistic missile programs.

U.S. Ambassador to the United Nations Nikki Haley said U.N. sanctions had banned 90 percent of the Asian state’s publicly reported exports, saying of Pyongyang on Friday: “This is totally in their hands on how they respond.”

Haley told CNN’s “State of the Union” program on Sunday that Washington had “pretty much exhausted” its options on North Korea at the Security Council.

Ri is due to address the General Assembly on Friday.

 

IRAN

Some leaders will also push Trump not to give up on a 2015 deal curbing Iran’s nuclear ambitions in return for a lifting of U.N., U.S. and European sanctions, while Israeli Prime Minister Benjamin Netanyahu said it was time to “fix it – or cancel it.”

The foreign ministers of Iran, the United States, Britain, Germany, Russia, China and France – the parties to the agreement – are due to meet on Wednesday ahead of an October deadline for Trump to tell Congress if he believes Tehran is sticking to what he has described as “the worst deal ever negotiated.”

When asked on Friday what Moscow’s message would be for Washington, Russia’s U.N. ambassador, Vassily Nebenzia, said: “Stay in the JCPOA (the nuclear deal).”

A senior U.N. Security Council diplomat, speaking on condition of anonymity, said: “We are faced with real uncertainties with respect to North Korea and it’s a bit dangerous … to add another source of uncertainty with respect to Iran.”

Iran’s Supreme Leader Ayatollah Ali Khamenei said on Sunday his country would not be bullied by the United States and would react strongly to any “wrong move” by Washington on the nuclear deal.

Iran and North Korea will also feature heavily during a ministerial Security Council meeting on Thursday, at the request of the United States, to discuss the proliferation of weapons of mass destruction.

 

MYANMAR, CLIMATE, U.N. REFORM

While leaders and diplomats are also due to meet on longer-running crises including Libya, Syria, South Sudan, Mali, Central African Republic, Yemen and Iraq, a last-minute addition has been Myanmar, where the United Nations has branded violence against Rohingya Muslims as “ethnic cleansing.”

Britain is due to host a ministerial meeting on Monday to seek a way to get Myanmar authorities to end a military offensive in the country’s Rakhine state that has sent more than 400,000 minority Rohingya Muslims fleeing to Bangladesh.

Following Trump’s announcement that the United States would withdraw from a landmark 2015 global agreement to fight climate change, several high-level gatherings are planned on the sidelines of the General Assembly to bolster the deal.

“Climate change is a serious threat,” Guterres told reporters. “Hurricanes and floods around the world remind us that extreme weather events are expected to become more frequent and severe, due to climate change.”

U.S. Secretary of State Rex Tillerson appeared to hold the door open for the United States to remain in the Paris climate accord “under the right conditions.”

“The president said he is open to finding those conditions where we can remain engaged with others on what we all agree is still a challenging issue,” Tillerson said on CBS’ “Face The Nation” program on Sunday.

Trump will seek to boost support for reforming the United Nations, which he once called “a club for people to get together, talk and have a good time.”

The United States is the largest U.N. contributor and Trump has complained that Washington pays too much.

“The United Nations, of course, holds tremendous potential to realize its founding ideals, but only if it’s run more efficiently and effectively,” McMaster said on Friday.

 

(Reporting by Michelle Nichols at the United Nations; Editing by Yara Bayoumy and Peter Cooney)

 

Congress votes to call on Trump to denounce hate groups

Congress votes to call on Trump to denounce hate groups

By Alex Dobuzinskis

(Reuters) – The U.S. Congress passed a resolution late on Tuesday calling on President Donald Trump to condemn hate groups after Trump was criticized for his response to the violence at a white nationalist rally in Charlottesville, Virginia, a month ago.

The U.S. House of Representatives unanimously adopted the resolution, U.S. Representative Gerry Connolly, a Democrat from Virginia, said in a statement. The Senate approved the measure on Monday.

“Tonight, the House of Representatives spoke in one unified voice to unequivocally condemn the shameful and hate-filled acts of violence carried out by the KKK (Ku Klux Klan), white nationalists, white supremacists and neo-Nazis in Charlottesville,” Connolly said.

The joint resolution, passed with the support of both Republicans and Democrats, will go to Trump for his signature.

Representatives for the White House did not respond immediately to an email seeking comment.

The Congressional resolution calls on Trump to condemn hate groups and what it describes as the growing prevalence of extremists who support anti-Semitism, xenophobia and white supremacy.

It also urges Attorney General Jeff Sessions to investigate acts of violence and intimidation by white nationalists, neo-Nazis, the Ku Klux Klan and similar groups.

Trump alienated fellow Republicans, corporate leaders and U.S. allies and rattled markets last month with comments about the violence in Charlottesville, where white nationalists and neo-Nazis clashed with anti-racism activists on Aug. 12.

One woman, Heather Heyer, was killed and several people were wounded when a suspected white nationalist crashed his car into anti-racist demonstrators.

The Congressional resolution calls Heyer’s death a “domestic terrorist attack.” James Alex Fields, a 20-year-old Ohio man who authorities say drove into Heyer and other protesters, has been charged with second-degree murder and other criminal counts.

On Aug. 12, Trump denounced hatred and violence “on many sides,” a comment that drew sharp criticism from across the political spectrum for not condemning white nationalists.

White nationalists had gathered in Charlottesville to protest against the planned removal of a statue of Robert E. Lee, who led the pro-slavery Confederacy’s army during the U.S. Civil War. Trump defended Confederate monuments last month.

At a rally in Phoenix on Aug. 22, Trump accused television networks of ignoring his calls for unity in the aftermath of the violence in Charlottesville.

“I didn’t say I love you because you’re black, or I love you because you’re white,” Trump said at the rally. “I love all the people of our country.”

The resolution also acknowledged the deaths of two Virginia State Police officers whose helicopter crashed as they patrolled the Charlottesville protest.

(Reporting by Alex Dobuzinskis in Los Angeles; Editing by Paul Tait)

Trump ends ‘Dreamer’ immigration program, places onus on Congress

Demonstrators protest in front of the White House after the Trump administration today scrapped the Deferred Action for Childhood Arrivals (DACA), a program that protects from deportation almost 800,000 young men and women who were brought into the U.S. illegally as children, in Washington, U.S., September 5, 2017. REUTERS/Kevin Lamarque

By Steve Holland and Yeganeh Torbati

WASHINGTON (Reuters) – President Donald Trump on Tuesday scrapped an Obama-era program that protects from deportation immigrants brought illegally into the United States as children, delaying implementation until March and giving a gridlocked Congress six months to decide the fate of almost 800,000 young people.

As the so-called Dreamers who have benefited from the five-year-old program were plunged into uncertainty, business and religious leaders, mayors, governors, Democratic lawmakers, unions, civil liberties advocates and former Democratic President Barack Obama all condemned Trump’s move.

The action was announced not by Trump but by Jeff Sessions, his attorney general, who called the Deferred Action for Childhood Arrivals (DACA) program an unconstitutional overreach by Obama. There will be an “orderly, lawful wind-down,” Sessions said.

Trump later issued a written statement saying that “I do not favor punishing children, most of whom are now adults, for the actions of their parents. But we must also recognize that we are (a) nation of opportunity because we are a nation of laws.”

He denounced Obama’s program as an “amnesty-first approach” toward illegal immigrants and pressed his nationalist “America First” message, saying that despite concerns voiced by his critics about the fate of the Dreamers, “Above all else, we must remember that young Americans have dreams too.”

On Tuesday evening, the Republican president tweeted that lawmakers now had six months to “legalize DACA” and that if they did not, he would “revisit this issue!”

Obama issued his own statement calling Trump’s action a political decision, defending DACA’s legality and urging Congress to protect Dreamers.

“This is about young people who grew up in America – kids who study in our schools, young adults who are starting careers, patriots who pledge allegiance to our flag. These Dreamers are Americans in their hearts, in their minds, in every single way but one: on paper,” Obama said.

The Trump administration said nobody covered by the program, which provided work permits in addition to deportation protection and primarily benefits Hispanics, would be affected before March 5. Most people covered by DACA are in their 20s.

Trump shifted responsibility to a Congress controlled by his fellow Republicans and said it was now up to lawmakers to pass immigration legislation that could address the fate of those protected by DACA who would be in danger of deportation.

Trump and Sessions offered no details of the type of legislation they would want to see, and Trump’s spokeswoman offered only a broad outline.

“I have a love for these people (DACA recipients), and hopefully now Congress will be able to help them and do it properly,” Trump later told reporters at the White House, adding: “I think it’s going to work out very well.”

Since Trump took office in January, Congress has been unable to pass any major legislation, most notably failing on a healthcare overhaul, and lawmakers have been bitterly divided over immigration in the past.

“President Trump’s decision to end DACA is a deeply shameful act of political cowardice and a despicable assault on innocent young people in communities across America,” said Nancy Pelosi, the top Democrat in the House of Representatives.

The Democratic attorney general of Massachusetts, Maura Healey, said a coalition of states planned to file suit in the coming days to defend DACA, and one advocacy group announced its own legal action.

“This is a sad day for our country,” added Facebook Inc <FB.O> founder Mark Zuckerberg. “The decision to end DACA is not just wrong. It is particularly cruel to offer young people the American Dream, encourage them to come out of the shadows and trust our government, and then punish them for it.”

Brad Smith, president of Microsoft Corp <MSFT.O>, urged Congress to “put the humanitarian needs of these 800,000 people on the legislative calendar” before tax-cut legislation sought by Trump.

Nearly 800,000 people stepped forward, admitted their illegal immigrant status and provided personal information to the government to apply for the DACA program. They now face the prospect of being deported starting in March. Dreamers are a fraction of the roughly 11 million illegal immigrants in the United States.

“The cancellation of the DACA program is reprehensible,” the U.S. Conference of Catholic Bishops said in a statement.

But White House spokeswoman Sarah Sanders said: “It’s not cold hearted for the president to uphold the law.”

Trump said DACA recipients would not be deportation priorities unless they were criminals or gang members.

Ending DACA was the latest action by Trump sure to alienate Hispanic Americans, a growing segment of the U.S. population and an increasingly important voting bloc. Most of the immigrants protected by DACA came from Mexico and other Latin American countries.

The Mexican government said it “profoundly laments” Trump’s decision to end DACA and pledged to strengthen efforts to guarantee consular protections for affected Mexican citizens.

THREAT OF LAWSUITS

The Homeland Security Department will provide a limited window – until Oct. 5 – for some DACA recipients whose work permits expire before March 5 to apply to renew those permits. In addition, the department will adjudicate any new DACA requests, or renewal requests, accepted as of Tuesday. That would mean that some beneficiaries of DACA could work legally in the country through 2019.

The administration said the president’s decision was prompted in part by a threat from several Republican state attorneys general, led by Texas, to file legal challenges in federal court if Trump did not act to end DACA. Late on Tuesday, Texas state Attorney General Ken Paxton said he withdrew the 10-state suit after Trump’s decision.

House Speaker Paul Ryan called on lawmakers to find a long-term solution for the young people affected by the reversal of the program. Republican Senate Majority Leader Mitch McConnell said Congress “will continue working on securing our border and ensuring a lawful system of immigration that works.”

Republican Senator Lindsey Graham said there could be a winning formula by coupling legislation to provide legal status for Dreamers with additional border security measures, although he said support was lacking in Congress for Trump’s proposed border wall.

Trump made a crackdown on illegal immigrants a centerpiece of his 2016 election campaign, promising to deport every illegal immigrant.

The decision to end DACA is the latest action by Trump to erase key parts of his Democratic predecessor’s legacy.

That includes pulling the United States out of the Paris climate accord, abandoning a 12-nation Pacific trade deal, seeking to dismantle the Obamacare healthcare law, rolling back environmental protections, reversing parts of Obama’s opening to Cuba and removing protections for transgender people.

(Reporting by Steve Holland and Yeganeh Torbati; Additional reporting by Richard Cowan, Doina Chiacu, Mica Rosenberg, Makini Brice, Tim Ahmann, Lawrence Hurley, Jonathan Allen, Sarah N. Lynch, Dustin Volz and David Alexander; Writing by Will Dunham and Dustin Volz; Editing by Cynthia Osterman and Peter Cooney)

Subdued by Harvey, Congress reconvenes facing fiscal tests

The U.S. Capitol building is seen at sunset in Washington, U.S. May 17, 2017. REUTERS/Zach Gibson

By Susan Cornwell

WASHINGTON (Reuters) – Hurricane Harvey devastated Texas, but could bring some fiscal order to Washington where Republicans and Democrats will need to put political differences aside in order to approve spending to repair the damage from flooding in and around Houston.

Lawmakers returning to Washington after a month-long break are expected to swiftly agree to an initial request for nearly $8 billion in disaster aid, with the House of Representatives considering assistance on Wednesday.

More requests will follow from the Trump administration, with the fractious Republicans who control the House and the Senate determined to look capable of governing in a crisis.

Some estimates say Harvey could cost U.S. taxpayers almost as much as the total federal aid outlay of more than $110 billion for 2005’s record-setting Hurricane Katrina.

That sobering cost and the urgent needs of Harvey’s victims have helped to calm a fiscal storm that had threatened to engulf Congress and President Donald Trump ahead of Oct. 1. The rancor revolves around the deadline for lawmakers to approve a temporary spending measure to keep the government from shutting down, as well as the need to raise the nation’s debt ceiling.

“There’s reason to hope that in the wake of the tragedy in Texas … there will be a renewed sense of community and common purpose that can help get things done,” said Michael Steel, a Republican strategist who once worked as spokesman for former House Speaker John Boehner.

Before Harvey, Trump had threatened to veto such spending and trigger a shutdown if Congress refused to fund his proposed U.S.-Mexico border wall. He has dropped his threat, the Washington Post reported on Friday, making a shutdown less likely.

As of the Labor Day holiday weekend, approval by Congress was widely anticipated in late September of a stopgap bill, or continuing resolution, to continue current spending levels for two to three more months.

The need to help Hurricane Harvey victims “creates another reason as to why you’d want to keep the government open,” Republican Senator Roy Blunt said on NBC’s “Meet the Press” Sunday.

FRESH START WITH TRUMP

With much of Washington distracted by tensions with North Korea over its nuclear program, Congress must also raise the federal debt ceiling by the end of September or early October to stave off an unprecedented U.S. government debt default, which would shake global markets.

The debt ceiling caps how much money the U.S. government can borrow, and some conservatives are loath to raise it without spending reforms. U.S. Treasury Secretary Steven Mnuchin on Sunday said Congress should act quickly to increase the debt limit, otherwise relief funding for hurricane-ravaged areas of Texas might be delayed.

“Without raising the debt limit, I am not comfortable that we will get money to Texas this month to rebuild,” Mnuchin said on Fox News Sunday.

Blunt, a junior member of Senate Republican leadership, said it was possible lawmakers could tie legislation raising the debt ceiling to measures providing financial aid for recovery from Harvey. “That’s one way to do it,” he said on Meet the Press.

The head of the Republican Study Committee, the largest group of House conservatives, said on Monday that Congress was obligated to help those hurt by Harvey.

But Representative Mark Walker also warned that “legislative games” like attaching Harvey aid to a debt ceiling hike could jeopardize consensus. “The debt ceiling should be paired with significant fiscal and structural reforms,” he said in a statement.

Senior Republicans were warning Trump not to anger Democrats by carrying through with his threat to curtail the Deferred Action for Childhood Arrivals (DACA) program for immigrant children, which Democrats widely support. Democratic votes will likely be needed to both raise the debt ceiling and prevent a shutdown.

Trump might have listened to them. Sources said on Sunday that he has decided to scrap the program that shields the young immigrants from deportation, but he will give Congress six months to craft a bill to replace it.

With his tendency to send conflicting policy signals and attack fellow Republicans, Trump may present the biggest uncertainty as Congress gets back to work.

The four top Republican and Democratic leaders of the Senate and House are set to hold a rare bipartisan meeting with Trump on Wednesday to chart a path forward for the multiple fiscal issues.

Senate Republican leader Mitch McConnell, who will attend the meetings, spent much of August feuding with Trump, who attacked the Kentuckian repeatedly on Twitter.

One Republican strategist said the Senate leader would not dwell on those tensions. “Basically every Republican senator is looking to put whatever nonsense happened on Twitter in August in the rear view mirror and focus on all the important work that needs to get done in September,” said Josh Holmes, a former chief of staff and campaign manager for McConnell.

(Additional reporting by David Morgan and Chris Sanders; Editing by Kevin Drawbaugh and Mary Milliken)

FEMA tells U.S. states to improve their own disaster relief efforts

A family that wanted to remain anonymous moves belongings from their home flooded by Harvey in Houston, Texas August 31, 2017.

HOUSTON (Reuters) – State and local governments need to become more self-sufficient in handling major disasters like Hurricane Harvey, FEMA Administrator Brook Long said in a televised interview on Sunday.

Speaking on CBS’ Face the Nation, Long said the federal support is intended to be a “ray of hope, a bridge to kick-start recovery,” and state and local governments need to do more on their own. They should not expect the federal government to make their citizens whole after major disasters, he said.

“We need elected officials at all levels to sit down and hit the reset button and make sure they have everything they need to increase levels of self-sufficiency,” Long said.

He called the massive devastation “a wakeup call for local and state officials,” saying they needed to fully fund their own emergency management offices and have rainy day funds set aside for such emergencies. “They can’t depend only on federal emergency management,” he said following pointed calls by Houston officials for FEMA to quickly increase staffing in the city and provide relief funds.

Long declined to offer an amount the White House would request Congress to provide for additional emergency assistance in the wake of Harvey. Earlier Texas Governor Greg Abbott said the cost of the storm had risen to between $150 billion and $180 billion.

Houston is making progress on several fronts to recover from Harvey, resuming city services and helping get people into housing and out of emergency shelters, Houston Mayor Sylvester Turner said in separate comments on Face the Nation on Sunday.

“This is a can-do city. We’re not going to engage in a pity party,” said Turner. “People are taking care of each other.” Speaking from the city’s convention center, which once housed 10,000 people fleeing from flooding, he said there are “significantly less than 2,000” people now staying at the shelter.

 

(Reporting by Gary McWilliams; Editing by Phil Berlowitz)