Government workers begin shutdown as Senate vote looms

The U.S. Capitol is lit during the second day of a shutdown of the federal government in Washington, U.S., January 21, 2018.

By Amanda Becker and Richard Cowan

WASHINGTON (Reuters) – Hundreds of thousands of federal workers began shutting down operations on Monday with the U.S. government closed and the Senate prepared to try again to restore funding, if only temporarily, and resolve a dispute over immigration.

As government employees prepared for the first weekday since the shutdown began at midnight Friday, U.S. senators were to vote at midday on a funding bill to get the lights back on in Washington and across the government until early February.

Support for the bill was uncertain, after Republicans and Democrats spent all day on Sunday trying to strike a deal, only to go home for the night short of an agreement.

Federal employees received notices on Saturday about whether they were exempt from the shutdown, White House budget director Mick Mulvaney said. Depending on their schedules, some were told to stay home or to go to work for up to four hours on Monday to shut their operation, then go home. None will get paid.

Senate Majority Leader Mitch McConnell said late Sunday that an overnight vote on a measure to fund government operations through Feb. 8 was canceled and would be held at 12 p.m. EST (1700 GMT) on Monday.

Up until Monday, most federal workers were not directly affected by the shutdown that began at midnight on Friday.

The federal Office of Personnel Management said on its website on Sunday night that “federal government operations vary by agency.”

The Department of Defense published a memo on its website detailing who does and does not get paid in a shutdown and saying that civilian employees were on temporary leave, except for those needed to support active-duty troops.

The Department of Interior led by Secretary Ryan Zinke, offered no guidance on its website, which still had a “Happy Holidays from the Zinke Family” video near the top of the site. The department oversees national parks and federal lands.

The State Department website said: “At this time, scheduled passport and visa services in the United States and at our posts overseas will continue during the lapse in appropriations as the situation permits.”

Markets have absorbed the shutdown drama over the last week, and on Monday morning world stocks and U.S. bond markets largely shrugged off Washington’s standoff even as the dollar continued its pullback. U.S. stock futures edged lower.

‘DREAMERS’ DRAMA

The U.S. government has not been shut down since 2013, when about 800,000 federal workers were put on furlough. That impasse prevented passage of a needed funding bill centered on former Democratic President Barack Obama’s healthcare law.

The problem this time focused on immigration policy, principally President Donald Trump’s order last year ending an Obama program called Deferred Action for Childhood Arrivals (DACA), which gave legal protections to “Dreamer” immigrants.

The “Dreamers” are young people who were brought to the United States illegally as children by their parents or other adults, mainly from Mexico and Central America, and who mostly grew up in the United States.

Trump said last year he would end DACA on March 5 and asked Congress to come up with a legislative fix before then to prevent Dreamers from being deported.

Democrats have withheld support for a temporary funding bill to keep the government open over the DACA issue. McConnell extended an olive branch on Sunday, pledging to bring immigration legislation up for debate after Feb. 8 so long as the government remained open.

Senate Democratic leader Chuck Schumer objected to the plan and it was unclear whether McConnell’s pledge would be enough for Democrats to support a stopgap funding bill.

Congress failed last year to pass a complete budget by Oct. 1, the beginning of the federal fiscal year, and the government has been operating on a series of three stopgap spending bills.

Republicans control both the House of Representatives and the Senate, where they have a slim 51-49 majority. But most legislation requires 60 Senate votes to pass, giving Democrats leverage.

Trump told a bipartisan Senate working group earlier this month that he would sign whatever DACA legislation was brought to him. The Republican president then rejected a bipartisan measure and negotiations stalled.

McConnell had insisted that the Senate would not move to immigration legislation until it was clear what could earn Trump’s support.

Republican Senator Jeff Flake, who is involved in bipartisan immigration negotiations, said McConnell’s statements on Sunday indicated there was progress in negotiations and he urged his Democratic colleagues to approve another stopgap bill.

(Additional reporting by Ginger Gibson and Damon Darlin; Editing by Peter Cooney and Jeffrey Benkoe)

U.S. Army, Interior Dept call for more review on Dakota pipeline

People march during a protest in Bismarck against plans to pass the Dakota Access pipeline under Lake Oahe and near the Standing Rock Indian Reservation, North Dakota

By Ernest Scheyder and Liz Hampton

(Reuters) – Federal authorities deferred a final decision on a controversial North Dakota section of the Dakota Access Pipeline on Monday in a statement that highlighted concerns about the “repeated” dispossession of tribal lands in the country’s past.

The Departments of the Army and Interior, in a joint statement, said that while their previous decisions to grant construction were consistent with legal requirements, they wanted to have additional discussions with the Standing Rock Sioux Tribe due to concerns about protecting Lake Oahe, a culturally sensitive and federally owned water source.

The $3.7 billion Dakota Access construction project has drawn steady opposition since last summer from the Standing Rock Sioux, along with environmental activists, who claim it could pollute nearby water supplies and destroy sacred historical sites.

Standing Rock Sioux Chairman Dave Archambault II said on Monday that he was “encouraged” by the decision, even though it was not 100 percent what the Tribe had hoped for.

Most of the construction of the proposed 1,172-mile (1,885 km) line, which will stretch from North Dakota to Illinois, has been completed. However, Energy Transfer Partners LP, which is building the line, has yet to receive approval for an easement to tunnel under Lake Oahe, which is part of the Missouri River and is adjacent to the Standing Rock Sioux Nation.

“This action is motivated purely by politics at the expense of a company that has done nothing but play by the rules it was given,” said Kelcy Warren, Chief Executive Officer of Energy Transfer Partners.

“To propose, as the (Army) Corps (of Engineers) now does, to further delay this pipeline and to engage in what can only be described as a sham process sends a frightening message about the rule of law.”

Dakota Access will vigorously pursue its legal rights in this matter, Energy Transfer Partners said in a joint statement with Sunoco Logistics Partners

People march during a protest in Bismarck against plans to pass the Dakota Access pipeline under Lake Oahe and near the Standing Rock Indian Reservation, North Dakota, U.S. November 14, 2016. REUTERS/Stephanie Keith

People march during a protest in Bismarck against plans to pass the Dakota Access pipeline under Lake Oahe and near the Standing Rock Indian Reservation, North Dakota, U.S. November 14, 2016. REUTERS/Stephanie Keith

Demonstrations continued on Monday as more than 500 Dakota Access Pipeline protesters tried to gain entry to the capitol in Bismarck. Officials put the building in a “soft lockdown,” in which all doors were locked and guarded, at 11:30 a.m. CST (1830 GMT), said Lieutenant Tom Iverson, spokesman for the Highway Patrol.

Completion of the pipeline was delayed in September so federal authorities could re-examine permits required by the Army Corps of Engineers.

In its statement, the Army said that its previous decisions “comported with legal requirements.” However, it added that it was “mindful of the history of the Great Sioux Nation’s repeated dispossessions, including those to support water-resources projects.”

It said its additional analysis and discussion with the tribe will include conditions in an easement for the pipeline crossing that might reduce the risk of spills, along with an assessment of how such a spill could affect the tribe.

“This delay provides an opportunity for the U.S. government to resolve outstanding issues to the full satisfaction of the Standing Rock Sioux Tribe and end this pipeline project,” said Amanda Starbuck, climate and energy program director at the Rainforest Action Network, an environmental group.

“DEATH BY DELAY”

Shares of ETP dipped about 1 percent in after-hours trading. Officials at Energy Transfer Partners were not immediately available for comment.

The line has been billed as a cost-effective and efficient way to bring North Dakota oil through Illinois, en route to the Gulf of Mexico.

It is unclear how long the review will take.

The Obama Administration has been supportive in the past of the protection of tribal lands. President-elect Donald Trump has voiced support for infrastructure projects, including pipelines, though he has not specifically addressed Dakota Access.

The likelihood of different government policies in two months could make for a limited delay in the project, said Rick Smead, Managing Director of Advisory Services for RBN Energy in Houston.

The MAIN Coalition, which represents groups that support the pipeline, called Monday’s action another “attempt at death by delay” of the pipeline, saying the administration “has chosen to further fan the flames of protest by more inaction.”

With Trump’s inauguration a little more than two months away, they said they hoped “this is not the final word on the Dakota Access Pipeline.”

More than 200 protests against the pipeline are planned across U.S. cities on Tuesday, according to organizers of the demonstrations.

Protests were a factor in the Obama administration’s decision to delay the line’s completion in September and ask for further review from the U.S. Army.

Previous demonstrations, which have drawn celebrities including actors Shailene Woodley and Susan Sarandon, have occasionally turned violent.

(Reporting by Ernest Scheyder and Liz Hampton in Houston; Additional reporting by Nallur Sethuraman in Bengaluru; Editing by Alan Crosby and Andrew Hay)