Tag: fiscal 2019

Trump Will Say Democrats Stole The 2018 Election…And 7 Other Predictions

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Less than a month before the election, about a month before the start of the lame duck session of Congress, a little over about 50 days before the next government shutdown deadline on December 7 and less than three months before the next Congress begins, these 8 things are both keeping me up at night and giving me nightmares while I’m awake.

It’s therapeutic (at least for me) to share them.

1. Trump Will Insist The Democrats Stole The 2018 Election

If Democrats win one or both houses of Congress this November, Trump will insist that it happened because (1) they colluded with the Russians or Chinese, (2) they hacked the election results in all 50 states, (3) illegal immigrants voted in record numbers or (4) all of the above. Trump will say he has information proving that the results weren’t a referendum on him, that he doesn’t plan to change a thing and that he will make the Democrats pay for stealing the election.

Then see #s 5,6, 7 and 8 below.

2. Big Federal Budget Deficits Are Now Permanent

The Trump administration will soon verify what the Congressional Budget Office reported last week.  When the U.S. Treasury releases its monthly statement for   September, it will confirm that the fiscal 2018 federal budget deficit increased to close to $800 billion dollars this past year and will be at or above $1 trillion for 2019.

But that will be just the beginning.  With more tax cuts about to be considered (see #3), a trillion-dollar infrastructure plan likely to be enacted at some point in the next few years, hurricanes and other disasters almost certainly on the horizon and no serious revenue increases or spending reductions likely to be considered, $1 trillion or higher federal budget deficits are now a permanent part of the U.S. economy and American politics. The previous political goal of projecting on paper (let alone actually achieving) a balanced budget in 10 years is now gone…forever.

3. Another Huge Tax Cut Will Happen This Year

I’m increasingly convinced that, during the lame duck, the Senate will take up the tax cut the House passed just before it recessed for the election. My sources on Capitol Hill tell me that preparations are already underway for Congress to quickly adopt a budget resolution at the start of the lame duck just so the Senate will be able to avoid a filibuster on the tax bill.

This will increase the deficit by another $600 billion to $700 billion over the next decade, and much more after that.

4. The Budget Deficit Will Reach $2 Trillion By 2024

There will be an economic downturn at some point over the next few years. Combined with #2 and #3 above, this will increase the deficit to close to $2 trillion.

5. Trump Will Ignore Democratic Subpoenas And Set Off A Huge Appropriations Fight

The common assumption seems to be that, if the Democrats are in the majority in one or both houses of Congress next year, as part of official committee investigations they will inundate the Trump administration with subpoenas for documents and witnesses. Not only do I seriously doubt that the White House will meekly comply with these subpoenas, I expect the president to routinely assert every possible reason that he doesn’t have to do so.

Yes, the courts will then get involved. But I also expect congressional Democrats to use next year’s appropriations process to push the administration to comply. It wouldn’t be shocking, for example, if Democrats threaten the funding for several assistant secretaries and the White House counsel in response to the White House’s stonewalling.

6. Shutdown Showdowns Are About To Become Even More Of A Thing

There will be multiple shutdown fights for two reasons.  First, Trump may not agree to full-year funding in any form (a continuing resolution, omnibus appropriation or Department of Homeland Security appropriation) without money for his wall. He’s far more likely to agree to a series of short-term funding bills that allow him to keep raising the issue, especially if he’s able to blame a Democratic majority for the wall not happening. That will set up frequent shutdown threats every year.

Second, see #5.

7. Trump Will Precipitate A Debt Ceiling Fight Sooner Than Expected

The federal debt ceiling was suspended by the Bipartisan Budget Act of 2018 until March 1, 2019, and the overwhelming assumption is that the Treasury will use “extraordinary measures” (the Washington equivalent of getting a cash advance on one credit card to make a payment on another) to delay raise the debt ceiling until September.

But just because Treasury has always used extraordinary measures in the past doesn’t mean it’s guaranteed to use them this time. Trump could easily at least threaten not to use these bookkeeping gimmicks at all or to stop using them at some point before September if the president doesn’t get something (such as funding for his wall, a space force and a military parade) he wants in return.

8. Trump 2020 Budget Will Be An Even Bigger Political Statement

The first two Trump budgets basically were campaign brochures masquerading as official federal documents. The next Trump budget — fir fiscal 2020 budget — will be released as his reelection efforts formally get underway and so will have very little to do with governing. It will be largely forgotten on Capitol Hill within two weeks of it being released.

Click Here To Follow Stan Collender on Twitter @thebudgetguy

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Donald Trump Is A Federal Budget Wuss

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The fiscal 2019 appropriations Congress is sending the White House include much more spending than the president requested, don’t have most of the spending cuts he proposed, don’t provide the $5 billion he demanded for the wall he wants built between the United States and Mexico and don’t stop funding for Planned Parenthood.

That’s much more than just a slap of Trump’s face by the GOP-controlled House and Senate: It’s a crack upside his head with a 2×4.

And, in response to Congress’s almost wholesale rejection of his budget priorities, Trump did…wait for it…nothing, or at least nothing meaningful.

Yes, on multiple occasions over the past year Trump huffed and puffed and menacingly threatened to blow Congress’s house down by shutting the federal government if he didn’t get what he wanted.

But when faced with the opportunity this week to veto the legislation that didn’t provide any money for his wall and actually to shut down the government, Trump ran from the fight he had been threatening so loudly for so long. While he was 250 miles away from Capital Hill in New York, Trump meekly said he would avoid the confrontation with Congress and sign whatever he was sent.

In other words, Donald Trump is a federal budget wuss.

This was a not strategic retreat by the White House. If anything, it’s going to be even harder for Trump to get what he wants on spending and taxes in a lame duck session than it was before. This was his best chance.

This is especially true of funding for his wall. Congress has already refused multiple times to provide the funds Trump wants and that isn’t likely to change after the election. That’s particularly true if the Democratic wave many are predicting actually happens and Trump’s policies become even less important to Republicans.

It’s also true of Trump’s other budget priorities. The two “minibus” appropriations that Trump’s signature will enact will provide funding for the full fiscal year and include the majority of the spending the president gets to approve. Trump simply won’t be able to have that much of an impact on what’s left even if he tries.

But even more important than the rejection of his budget policies is the fact that Congress played Trump like a virtuoso and he was unable and unwilling to do anything about it.

That kind of weakness is always recognized and seldom, if ever, forgotten.

Follow Stan Collender on Twitter @thebudgetguy.

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This Is The Week We Find Out If Trump Is A Shutdown Blowhard

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The federal government will shut down a week from today if Donald Trump carries out his often-made threat to veto the continuing resolution that will prevent Washington from turning into a pumpkin on September 30th at midnight.

So…at least as far as this shutdown is concerned…we’re finally going to find out whether Trump is all talk and no action since he swore this past March never to sign another funding bill without money for the wall he wants built between the United States and Mexico.

To be fair, Trump has also often made threats over the past six months not to cause a government shutdown. As I’ve been posting (most recently here), where Trump stands on shutting down the government on any day has been anything but consistent. When it comes to a shutdown, what he has said and when he has said it has had no relation to what he has said the day before.

It’s very possible that Trump has been doing nothing more than pounding his chest the past few months.

But with the new fiscal year set to start next Monday and only 3 of the 12 appropriations enacted, it’s finally put-up-or-shut-up time for Trump.

At this point there are few facts and lots of speculating about this situation.

The facts:

1. Congress combined two – for the Departments of Defense and Health and Human Services — of the remaining 2019 appropriations into a single bill. That combined appropriation has already passed the Senate and presumably will be adopted this week by the House week.

2. The GOP congressional leadership added a continuing resolution for the seven appropriations that will not be adopted by September 30th to this DOD-HHS “minibus.” That CR will keep all the agencies and departments in those seven bills funded until December 7th.

3. The DOD-HHS-CR includes no new funds for Trump’s wall.

4. Trump’s most recent statement on the shutdown came when he tweeted late last week that the DOD-HHS-CR bill that doesn’t provide the $5 billion he wants for his wall is “ridiculous.”

So, with less than a week to go, there’s a clear need for a CR but no way to know what Trump will do.

The Speculation:

As Amber Phllips (@byamberphillips) reported last week in The Washington Post, the speculation about what Trump will do is rampant.

1. On the one hand, congressional Republicans don’t want a shutdown before the election and Trump supposedly has agreed to wait until the December 7th deadline to push the wall issue.

2. On the other hand, in a very Trumpian fashion, the president has indicated several times since meeting with Ryan and McConnell that he might not be willing to wait until December to get the funding he wants.

3. As much as he needs to work with the GOP leadership, Trump seems to be taking his cues on this issue as much from Sean Hannity and other conservative commentators as he is from Ryan and McConnell.

4. It’s possible that Trump realizes both that Ryan and McConnell have been playing him for close to two years about funding for his wall and that getting what he wants after the election will be more difficult than it will be now.

5. It’s also possible…and perhaps even likely…that Trump will see a fight over funding for his wall as the best way to reinvigorate the immigration issue in a big way before the election.

6. And it’s definitely possible that Trump will see a shutdown next week as a great way to divert attention away from Mueller, Manafort, Cohen, Bob Woodard’s book and the Kavanaugh nomination, especially if the Kavanaugh nomination doesn’t go well.

But it’s also very possible that Trump has been doing nothing more than pounding his chest the past few months and in the end will prove he’s a blowhard by doing nothing more than signing the CR and claiming a great victory.

We’ll know the truth in just days.

Follow Stan Collender on Twitter @thebudgetguy.

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GOP Congress Gives Trump Its Middle Finger

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No, it’s not oversight hearings into…well…anything.

And it’s certainly not a subpoena, legislation to protect the Mueller investigation or the rejection of his Supreme Court nominee.

But the GOP congressional leadership’s decision last week not to give Donald Trump the $5 billion he wants for a wall between the United States and Mexico before the election and then to make it much harder for him to veto the legislation that codifies that decision was the closest House and Senate Republicans have come since Trump was elected to publicly giving him their collective middle finger.

First, Congress decided to combine several of the fiscal 2019 appropriations together both to deal with the very limited amount of time left before the government shuts down on October 1 and to make it more likely that the wide swath of programs funded in these small omnibus appropriations (hence the name “minibus”) would attract enough votes to pass the House and Senate.

This was an act of desperation and defiance by the Republican leadership.

Second, the GOP leadership then decided to attach the continuing resolution — the bill that will be needed to keep open the agencies and departments not included in either of the two minibuses — to the combined Defense-Health and Human Services appropriation. Given that the White House staff (but not Trump himself) has indicated that the president will sign that bill, the thinking was that this will reduce or even eliminate the chances of government shutdown before the election.

This was an act of desperation and defiance by the Republican congressional leadership. Knowing that they weren’t going to approve the billions of dollars Trump has been insisting on for his wall and that they would face his wrath when they didn’t, the GOP Congress made it significantly more painful for the president to react negatively when he didn’t get what he was demanding.

This has been coming for months given that the congressional Republicans’ political needs differ so sharply from Trump’s heading into the mid-term elections.

With polls showing the Republican control of the House and Senate increasingly at risk, a government shutdown is the last thing the GOP leadership wants five weeks before Election Day and just as early voting gets underway in many states.

Trump, on the other hand, may see a shutdown over his wall as the best way to raise the reddest of red meat issues — immigration — with his base.

And Trump’s need to energize his base took on increased importance last week with Paul Manafort’s plea deal, the release of Bob Woodward’s book and the continuing aftermath of the New York Times anonymous op-ed.

So far, Trump has been anything but consistent about a shutdown.

Trump may see a government shutdown as the most dramatic thing available to him right now to divert attention. Other very dramatic diversions, such as firing Attorney General Jeff Sessions, all seem unlikely before the election.

He may also see it as part of his continuing anti-impeachment strategy to energize the voters he will need to keep Congress from moving forward.

What’s most interesting and potentially most politically significant about this are that the Republicans in Congress (1) decided to devise an appropriations strategy that unambiguously helps themselves rather than Trump, (2) didn’t accommodate the White House in even some small way and (3) challenged Trump so openly.

In addition, the congressional leadership did this not knowing whether it would work. As I noted in this post, So far, Trump has been anything but consistent about a shutdown and there’s no way to guarantee he will be more rational between now and October 1 than he has been so far.

Indeed, given Manafort et al., it may be safer to assume that he won’t be.

In other words, Trump could easily decide to reply to the congressional GOP’s middle finger by giving it right back to them.

Follow Stan Collender on Twitter @thebudgetguy.

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Government Shutdown Fight This September Will Be All About Trump

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From everything we know about Donald Trump, he wouldn’t want this to happen any other way: A threatened or actual government shutdown at the end of this month is going to be all about him.

There’s not much time left for Congress to do everything that has to be done to prevent the government from turning into a pumpkin on September 30th at midnight. There are only 28 days left before the new fiscal year begins on October 1, but the House and Senate are only scheduled to be in session for 11 of those days.

And it’s not just that Congress has a great deal left to do, it’s that it hasn’t yet adopted any of the 12 appropriations for the coming year. Although the work on a few of these bills supposedly is nearing completion, in this highly partisan, highly emotional and high-political stakes environment where there are significant differences not just between Republicans and Democrats but also between House and Senate Republicans, being close to enacting any these bills may more wishful thinking than solid intelligence.

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In addition, in these take-no-prisoner days just before the election, “compromise” will be thought of as collaborating with the enemy rather than good legislating.

So there’s everything left to do, not much time left to do it and less incentive than might be expected to get it done.

The overwhelming likelihood, therefore, is that by October 1 Congress will need to pass and the president sign a continuing resolution to keep the government from shutting down.

In most prior years a CR would have been routine and noncontroversial. This especially would have been the case in a year like this with the House and Senate incumbents running for reelection wanting to get back to their districts or states, with control of the House and/or Senate in doubt, with the members of the current majority wanting few Washington-oriented controversies to interfere with their campaigns and with a lame duck session ahead where final funding decisions could be made.

But this year Congress is not in control of its destiny on a CR. Trump has given strong signals that he won’t sign a funding bill to keep the government open unless he gets what he wants, when he wants it and at the levels he’s demanding.

So far, Trump seems to want three things, all of which will allow him to demonstrate that he’s the straw that’s stirring the federal goverment’s drink.

1. His highest priority so far is the funding for the wall he wants built between the United States and Mexico. Informal estimates have put the cost as high as $30 billion but Trump has indicated he might accept $5 billion in this bill as a down payment.

2. Trump announced last week that, against the Senate’s wishes, he was freezing the pay for federal civilian employees.

3. His space force has been more ammunition for late-night television comedians than a serious conversation on Capitol Hill, but that may not stop Trump from demanding funds in this bill at least to start the planning process.

So far, Congress doesn’t seem inclined to grant Trump any of his three CR wishes.

It has already refused multiple times to provide funding for the wall. Given the serious reelection harm the pay freeze will do to GOP representatives from districts with a high number of federal employees, the Republican majority in the House is very likely to join the Senate and mandate the cost-of-living increases the president doesn’t want. In addition, there’s little-to-no interest on the Hill to do anything about the space force this year.

The whole question, therefore, is what will Trump do if he’s faced with one or more defeats on these three issues?

Up to now, he’s backed down every time. Trump has either accepted the GOP leadership’s promise to consider what he wants to do next time, has huffed and puffed that he wouldn’t sign a bill but then signed it any way or vehemently complained about the legislative process (especially the filibuster) when it prevented him from getting what he wanted.

Trump could keep easily keep this streak going and back down again. On the other hand, there are a variety of reasons this time could be different. For example:

1. The continuing legal threats are clearly increasing the president’s need to divert attention to situations — like a government shutdown — he can control.

2. Trump’s strategy for dealing with Mueller at least in part seems to be to do things that remind his supporters why they voted for him in the first place. Shutting down the government now would be the ultimate way to do this.

3. Having lost on the wall so often before might finally convince Trump that he’s not willing to be fooled again by the GOP congressional leadership.

4. Trump may think that, if there’s a Democratic majority in the House or Senate next year, this will be his last chance to get these things.

The shutdown situation isn’t likely to be decided until the very end of September for two reasons.

First, Congress will probably send the CR to Trump as close to September 30th as possible to limit his options. Adopting it the week before, for example, would give the president a free pass because he could veto it and demand changes without shutting the government.

Second, unless it’s delayed again, the second Manafort trial is scheduled to begin on September 24th and the White House may want to have a big diversion tactic like a shutdown ready to go just in case it is needed.

But no matter when this shutdown debate happens, and even though it’s supposed to be about funding levels, this shutdown fight is going to be far more about all things Trump than anything having to do with the federal budget.

Follow Stan Collender on Twitter @thebudgetguy.

Current 60% Chance Of A Government Shutdown Very Likely To Increase Further

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Today, with exactly (and just) five weeks to go before the start of the next federal fiscal year, nothing has changed to make the odds of a government shutdown less than they were before the House of Representatives began its summer-Labor Day recess.

As a result, I’m sticking with my previous estimate that there’s a 60 percent chance the federal government will shut down this October 1.

That is, I’m sticking with 60 percent for now. If anything, the likelihood of a shutdown is only going to increase from here.

Yes, as Carl Hulse pointed out in the New York Times, the Senate did make some progress on the 2019 appropriations this summer (although I disagree with his assertion that the Senate has “got its groove back”).

But there are still only 11 legislative days left in September and Congress as a whole isn’t close to completing the work it has to do on all the 2019 spending bills to get them signed by the president before the government turns into a pumpkin at midnight September 30.

Besides, Congress getting the 12 individual appropriations to the president isn’t the most important question.

As I’ve been posting here for months and as Sarah Ferris reported in Politico last Friday, no one has any idea whether President Trump will sign any appropriations if Congress doesn’t provide at least $5 billion for the wall he wants to build between the United States and Mexico.

And although he no longer needs to pay for his military parade, you can’t help but wonder whether Trump will now also demand at least initial funding for his space force as the price for his signature.

To say the least, up to now Trump has consistently been inconsistent and unreliable when dealing with Congress on budget issues. Congressional Republicans have every reason to be very concerned about whether, if he has the need, Trump will shut down the government.

And given last week’s Cohen/Manafort/Pecker/Weiselberg/Mueller events, Trump seems increasingly likely to have the need to do just that. If, as seems likely, Congress again refuses to appropriate the billions he wants for his wall, Trump will be handed a relatively easy way to show that he’s in charge; to look tough on immigration, the most important issue he has ridden since the day he announced his candidacy; and to reconfirm his dealmaking abilities.

Congressional Republicans have every reason to be very concerned about whether, if he has the need, Trump will shut down the government.

Being able to dictate the terms of a deal on a continuing resolution — the funding bill most likely to be needed to keep the federal government from shutting its doors — should not be underestimated as a major motivation for the president.

Over just the last few weeks, Trump has been unable to control Robert Mueller, Omarosa Manigault Newman, Michael Cohen and Attorney General Jeff Sessions. He’s also had to order his secretary of State not to travel to North Korea because the North Koreans were not cooperating, deal with his tariffs not being well-received and confront the fact that his tax cut is less popular than the Affordable Care Act.

In addition, as his extensive use of executive orders and pardons demonstrate, Trump loves situations where he can make a unilateral decision…like being the sole person who may veto the CR.

Trump may also see this as his last chance the fund the wall. While there still might be an opportunity during the coming lame duck session of Congress, trump is likely to have far less leverage with recalcitrant Republicans then given that they will no longer be itching to get back to their districts and states to campaign for relection.

In addition, a Democratic takeover of one or both houses will kill almost all chances of the wall ever being funded before Trump has to run for relection.

All of this is why I think there’s still a 60 percent (but rising) chance we’ll have a government shutdown this fall.

Follow Stan Collender on Twitter @thebudgetguy

 

Get Ready: This Fall’s Federal Budget Debate Will Be A Real Cliffhanger

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In alphabetical order…Michael Cohen, Stormy Daniels, Rick Gates, Paul Manafort, Omarosa Manigault Newman, Scott Pruitt, Vladimir Putin, Roger Stone and, of course, Donald Trump haven’t just dominated the headlines over the past six months, they’ve sucked the air out of most federal activities.

This is especially true of the federal budget which (it pains me to admit) is absolutely boring compared to all of the salacious, despicable and embarrassing stories with which it has had to compete for attention this year.

That’s about to end. Big time.

No, Manafort et. al. won’t be going away. If the brief history of the Trump presidency is any indication, new investigations, indictments, tweets and aberrant personalities will emerge this fall to supplant those that have already appeared.

But for the first time since this past March, the federal budget is about to return to the big screen in Washington…not as a comedy or action film, but as an old-fashioned cliffhanger.

Last March was when President Trump swore he would shutdown the government if the next funding bill Congress sent him didn’t include billions of dollars for the wall he wants to build between the Unites States and Mexico. He’s since repeated that threat multiple times.

The fiscal 2018 omnibus appropriation he signed in March will expire at midnight September 30. That means the GOP’s House and Senate majorities will soon be facing the implications of Trump’s budget blood oath from almost six months ago.

This is going to be pure melodrama with the fiscal equivalents of villains, damsels in distress tied to the tracks and, perhaps, one or more heroes and heroines.

If you think I’m kidding, watch the cliff hanger movie trailer below and then read the following top ten questions about what is coming over the next six weeks out loud. I’ll bet you can’t help but sound like you’re hyping the next installment.

1.  Will Donald Trump carry out his dastardly plot to shut down the federal government on October 1 if Congress doesn’t provide at least $5 billion for his wall?

2. Will Trump now insist that shutting down the government depends on him also getting funding for his just-proposed but much-ridiculed space force?

3. Will House and Senate Republican leaders try to fool Trump into thinking that the best moment to shut the government will be after the election during the lame duck session of Congress?

4. Will the Congressional Budget Office and Treasury Department reports that will released just weeks before the election that confirm Trump’s big deficits finally force Republicans to face the budget realities they have been so desperate to avoid?

5. Will the confirmed Trump deficits increase the already strong dislike of the GOP tax bill even further just before the midterms?

6. Will congressional Democrats, who were blamed for the last government shutdown, be blamed again?

7. Will congressional Republicans ease the political pain of a shutdown by passing one or more 2019 appropriations so some popular departments and agencies won’t be affected?

8. Will Office of Management and Budget Director Mick Mulvaney carry out his diabolical plan to lessen the political impact of a shutdown by classifying routine federal functions like national parks as essential government services that must stay open.

9. Does the House’s plan to pass another tax cut, which the Senate has already said it won’t consider, foolishly make a continuing resolution and government shutdown even more likely?

10. Which programs will really be tied to the track as the budget train gets ever closer?

 

Follow Stan Collender on Twitter @thebudgetguy

Don’t Leave Just Yet…There’s so much more here:

Attention Conservatives: The Deficit Is Not Just A Spending Problem
Trump’s Space Force Is Really A Space Farce
GOP Won’t Be Able To Hide From It’s Big Deficits Before The Election After All
Trump’s Deficits Will Cause Very Serious Challenges For Multiple Generations Of Americans
Here’s What I Told NPR This Morning About The Deficit (Spoiler Alert: It’s Not Pretty)
Trump’s Economic Lies, Damn Lies And Statistics Revealed For All To See
Raising The Chances Of A Government Shutdown This Fall To 60%
OMB Director Mick Mulvaney Says CBO Was Right After All