Overnight Finance: Senate approves Trump's debt deal with Dems | Conservatives fume at GOP leaders -- not Trump | Trump wants to talk about killing debt limit | Panel approves Fed, comptroller nominees

Overnight Finance: Senate approves Trump's debt deal with Dems | Conservatives fume at GOP leaders -- not Trump | Trump wants to talk about killing debt limit | Panel approves Fed, comptroller nominees
© Greg Nash

Senate approves Trump's debt deal with Democrats: The Senate on Thursday approved a short-term bill to fund the government and raise the debt ceiling despite frustration among Republicans about the deal President Trump struck with Democrats.

Senators voted 80-17 on the agreement, which includes an extension of government funding and an increase in the federal borrowing limit through Dec. 8. Those measures are paired with more than $15 billion in hurricane and disaster recovery aid.

Seventeen Republican senators voted against the deal, including Sens. Lindsey GrahamLindsey Olin GrahamCongress punts fight over Dreamers to March Pence tours Rio Grande between US and Mexico GOP looks for Plan B after failure of immigration measures MORE (S.C.), John McCainJohn Sidney McCainLawmakers worry about rise of fake video technology Democrats put Dreamers and their party in danger by playing hardball Trump set a good defense budget, but here is how to make it better MORE (Ariz.) and Rand PaulRandal (Rand) Howard PaulDem wins Kentucky state House seat in district Trump won by 49 points GOP's tax reform bait-and-switch will widen inequality Pentagon budget euphoria could be short-lived MORE (Ky.). No Democrats voted against the measure.

GOP Sen. Ted CruzRafael (Ted) Edward CruzOvernight Health Care: Trump eases rules on insurance outside ObamaCare | HHS office on religious rights gets 300 complaints in a month | GOP chair eyes opioid bill vote by Memorial Day HHS official put on leave amid probe into social media posts Trump, Pence to address CPAC this week MORE (Texas), whose state was hit hard by Hurricane Harvey, supported the measure but stressed, "I would have much preferred a clean Harvey relief bill."

The deal has stoked widespread opposition in the GOP, particularly among conservatives. Though Republicans support helping communities devastated by Hurricane Harvey, many are loath to raise the debt ceiling or fund the government without spending or entitlement reforms. The Hill's Jordain Carney reports: http://bit.ly/2xQvfmm.


Conservatives direct ire at GOP leaders -- not Trump: Conservatives are blasting the fiscal deal brokered by President Trump and Democratic leaders, but are blaming GOP leaders in Congress more than the White House.

Trump shocked most of Washington by agreeing to the deal with Senate Minority Leader Charles SchumerCharles (Chuck) Ellis SchumerDemocrats now attack internet rules they once embraced Schumer: Trump budget would ‘cripple’ gun background checks Schumer: Senate Republicans' silence 'deafening' on guns, Russia MORE (D-N.Y.) and House Minority Leader Nancy Pelosi (D-Calif.); it was similar to a proposal Democrats had offered earlier on Wednesday that Speaker Paul RyanPaul Davis RyanRepublicans are avoiding gun talks as election looms The Hill's 12:30 Report Flake to try to force vote on DACA stopgap plan MORE (R-Wis.) called "ridiculous."

The agreement would fund the government and raise the debt ceiling through Dec. 8, tying that legislation to aid for communities hit by Hurricane Harvey.

"While some have advocated for a 'clean' debt limit increase, this would simply increase the borrowing authority of the government while irresponsibly ignoring the urgency of reforms," Rep. Mark Walker (R-N.C.), the chairman of the Republican Study Committee, wrote in a letter to Ryan.

Walker's missive didn't mention Trump.

The Hill's Niv Elis explains: http://bit.ly/2xQl41g.



Senate Banking panel approves Trump's Fed, comptroller nominees: The Senate Banking Committee on Thursday approved the nominations of two of President Trump's top financial regulator nominees, sending them to the full Senate for consideration.

The panel approved along party lines Randal Quarles to serve as Federal Reserve vice chairman for supervision and Joseph Otting to serve as comptroller of the currency.

Only Sen. Heidi HeitkampMary (Heidi) Kathryn HeitkampSenate rejects Trump immigration plan Cramer to announce North Dakota Senate run on Friday Senate Democrats not sold on bipartisan immigration deal MORE (D-N.D.), who is up for reelection in 2018 in a state Trump won by large margin in the presidential election, voted with all Republicans to approve Otting. Sens. Jon TesterJonathan (Jon) TesterWith vote against Brownback, Democrats abandon religious freedom Democrat Manchin: Pence attacks prove ‘they don't want bipartisanship’ in Trump admin Tester invited the Border Patrol Union’s president to the State of the Union. What does that say to Dreamers?   MORE (D-Mont.), Joe DonnellyJoseph (Joe) Simon DonnellyDemocrats now attack internet rules they once embraced Dem group launches M ad buy to boost vulnerable senators Senate rejects Trump immigration plan MORE (D-Ind.), Chris Van HollenChristopher (Chris) Van HollenDems pan Trump's budget as helping the wealthy Senate Dems push FDA to reject alternative cigarette health claims Trump must send Russia powerful message through tougher actions MORE (D-Md.) and Mark WarnerMark Robert WarnerLawmakers worry about rise of fake video technology Mueller indictment reveals sophisticated Russian manipulation effort GOP cautious, Dems strident in reaction to new indictments MORE (D-Va.) voted with Heitkamp and all Republicans to approve Quarles; Tester and Donnelly are both up for reelection next year in states Trump won.

Quarles and Otting should face little difficulty clearing the GOP-controlled Senate. The two will play major roles in the Trump administration's efforts to reshape financial regulation and "dismantle" the Dodd-Frank financial reform law: http://bit.ly/2xQyYjM.


Trump wants to talk about killing debt limit: President Trump said Thursday that he is willing to pursue a deal to eliminate the requirement that Congress vote to raise the debt ceiling.

"It could be discussed," the president told reporters at the White House. "For many years people have been talking about getting rid of debt ceiling altogether and there are a lot of good reasons to do that ... We even discussed it at the meeting we had yesterday."

The debt ceiling is one of several issues Trump said he wants to work on with Democratic and Republican lawmakers.

"The people of the U.S. want to see a coming together," he said, a remark suggesting the deal-making Trump did on Wednesday with Democrats -- which shocked both parties -- might be a sign of things to come.

"I think we will have a different relationship than we've been watching over the last number of years," he said. "I hope so. I think that's a great thing for our country."

Trump's comments appeared to all but confirm reports that the president spoke with Senate Minority Leader Charles Schumer (D-N.Y.) about getting rid of the federal debt limit.

The Hill's Jordan Fabian has more here: http://bit.ly/2vQepHX


Happy Thursday and welcome back to Overnight Finance. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line.

See something I missed? Let me know at slane@thehill.comor tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.


Mnuchin: 'We're very happy' to have debt, Harvey deal: Treasury Secretary Steven MnuchinSteven Terner MnuchinOvernight Tech: Judge blocks AT&T request for DOJ communications | Facebook VP apologizes for tweets about Mueller probe | Tech wants Treasury to fight EU tax proposal Overnight Regulation: Trump to take steps to ban bump stocks | Trump eases rules on insurance sold outside of ObamaCare | FCC to officially rescind net neutrality Thursday | Obama EPA chief: Reg rollback won't stand Big tech lobbying groups push Treasury to speak out on EU tax proposal MORE says he's satisfied with a temporary deal President Trump cut with Democrats to raise the debt ceiling and extend government funding.

"We're very happy we have a deal," Mnuchin told host Maria Bartiromo on Fox Business Network's "Mornings with Maria."

"The president's priority was to make sure we have the funding for [Hurricane] Harvey and to make sure we raise the debt limit to pay for that," he continued, adding that the deal "accomplished" those goals: http://bit.ly/2xQglfZ.


Ryan explains Trump deal: President didn't want 'food fight' Speaker Paul Ryan (R-Wis.) said Thursday that President Trump agreed to a stunning short-term deal with Democrats on Hurricane Harvey aid, the debt limit and government funding because he didn't want a "food fight" and wanted to instead show bipartisanship.

When the moderator at a New York Times-hosted event asked Ryan how the deal came about and how he felt about it, the Speaker sighed and took a moment to gather his thoughts before explaining that he believes the president made the agreement with Democrats in order to avoid partisan fighting.

Trump wanted a "bipartisan response and not a food fight" on the timing of the debt limit, Ryan said.

Ryan added that the president wanted a "bipartisan moment in response to these hurricanes." The Hill's Naomi Jagoda reports: http://bit.ly/2xQloNq.


But... Conservative caucus opposes Trump deal with Pelosi, Schumer: The largest Republican caucus in the House announced Thursday that it opposes President Trump's deal with Democrats tying a three-month government-funding extension to a Hurricane Harvey disaster relief bill.

Rep. Mark Walker (R-N.C.), chairman of the conservative Republican Study Committee, called the deal irresponsible in a letter to Speaker Paul Ryan (R-Wis.).

"While some have advocated for a 'clean' debt limit increase, this would simply increase the borrowing authority of the government while irresponsibly ignoring the urgency of reforms," Walker wrote.

Conservatives have long argued that increases to the debt limit, which are needed to stop the U.S. government from defaulting on its debt, should only be passed alongside spending reforms. http://bit.ly/2xQwbr9.


Heritage Action calls for GOP to reject Trump spending deal: Conservative group Heritage Action is calling on lawmakers to reject a deal struck among President Trump and congressional Democrats that provides relief funding for Hurricane Harvey while extending government funding and debt limits for three months.

Trump shocked Republicans Wednesday when he agreed to the deal proposed by the Senate and House minority leaders, and right-wing groups including Heritage Action warned GOP members they would be key-voting the short-term spending deal.

"The Trump administration and congressional Republicans agreed to link that much-need emergency spending to a suspension of our nation's debt ceiling, and the administration ultimately agreed with congressional Democrats that the debt ceiling suspension should last less than three months," Heritage said Thursday.

The vote puts Republicans in an uncomfortable situation, in which they must either defy the president and publicly vote against a bill funding relief efforts after a storm that devastated hundreds of thousands of Americans, or face the wrath of the conservative advocacy groups and deficit hawks. http://bit.ly/2xQdTGc.


Jobless claims surge after Hurricane Harvey: Unemployment applications spiked last week to the highest level in more than two years in the wake of Hurricane Harvey's lashing of Texas and Louisiana.

Weekly jobless claims hit 298,000 in the week ending Sept. 2, an increase of 62,000 from the previous week's 236,000, the highest level for initial claims since April 18, 2015, the Labor Department reported on Thursday.

The one-week jump in claims was the largest since an increase of 81,000 in November 2012 after Superstorm Sandy barreled into the Northeast.

Claims jumped 96,000 after Hurricane Katrina hit in September 2005, according to Gus Faucher, PNC chief economist.

With Hurricane Irma bearing down on Florida and the East Coast, claims may experience more surges in the coming weeks: http://bit.ly/2xQeRSQ.


Ryan throws cold water on Trump tax goal: House Speaker Paul Ryan (R-Wis.) on Thursday said that President Trump's goal of lowering the corporate tax rate to 15 percent would be difficult to achieve.

"The numbers are hard to make that work," Ryan said at an event hosted by The New York Times.

Ryan said that his goal is to lower the corporate tax rate from 35 percent to at least the average for industrialized countries, 22.5 percent.

"Our goal is to get in the mid-to-low 20s, and we think that that's an achievable goal," he said.

The corporate rate has been the source of considerable debate as Republicans seek to overhaul the tax code.

In a speech in North Dakota Wednesday, Trump said that "ideally, we would like to bring our business tax rate down to around 15 percent." House Freedom Caucus Chairman Mark Meadows (R-N.C.) has also said that he would like the corporate tax rate to be in the teens: http://bit.ly/2xQl815.


Chamber targets GOP lawmakers in new ads for tax reform: The U.S. Chamber of Commerce on Thursday launched a seven-figure advertising campaign to promote tax reform, as President Trump turns his focus to the issue.

The Chamber is partnering with The Business Council of New York State on ads that target several GOP House members from the state who could be vulnerable in the midterm elections. The television and digital ads show people at work arguing that a tax-code rewrite would help the economy and working families.

The new ad campaign comes the same week Congress returned to Washington following its August recess. GOP lawmakers and the White House have said they want to overhaul the tax code by the end of the year, and Trump has started to give speeches making the case for tax reform.

Neil Bradley, the Chamber's senior vice president and chief policy officer, said the group will be "holding lawmakers accountable to make sure [tax reform] gets done for the American people." http://bit.ly/2xQxPbY.


Mnuchin: Executive order ready to sanction countries trading with N. Korea: Treasury Secretary Steven Mnuchin says he has prepared an executive order for President Trump that would sanction nations trading with North Korea.

"If we don't get these additional sanctions at the [United Nations], as I mentioned over the weekend, I have an executive order prepared, that's ready to go to the president that will authorize to stop doing trade and put sanctions on anybody that does trade with North Korea," Mnuchin told reporters on Wednesday.

Mnuchin described "the North Korean situation" as "not acceptable" in comments that come after Pyongyang said over the weekend that it successfully tested a miniaturized hydrogen bomb that can be placed on an intercontinental ballistic missile. http://bit.ly/2xQlPHJ.


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Write us with tips, suggestions and news: slane@thehill.comvneedham@thehill.comnjagoda@thehill.com and nelis@thehill.com. Follow us on Twitter: @SylvanLane,  @VickofTheHill@NJagoda and @NivElis