On The Money: Trump says he won't declare emergency 'so fast' | Shutdown poised to become longest in history | Congress approves back pay for workers | More federal unions sue over shutdown

On The Money: Trump says he won't declare emergency 'so fast' | Shutdown poised to become longest in history | Congress approves back pay for workers | More federal unions sue over shutdown
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Happy Friday and welcome back to On The Money. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line.

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THE BIG DEAL: President TrumpDonald John TrumpTrump conversation with foreign leader part of complaint that led to standoff between intel chief, Congress: report Pelosi: Lewandowski should have been held in contempt 'right then and there' Trump to withdraw FEMA chief nominee: report MORE on Friday said he will hold off on declaring a national emergency to circumvent Congress and begin building his long-promised border wall, at least for the time being.

The president's decision to pull back from his threat to declare an emergency means that the White House is bracing for the partial government shutdown to drag on.

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Trump told reporters at the White House that he has the authority to make an emergency declaration to jump-start wall construction, but said, "I'm not going to do it so fast."

"It's the easy way out, but Congress should do this," Trump said, adding he would "rather not" because the declaration could face court challenges that would delay wall construction for months. The Hill's Jordan Fabian takes us there.

 

Rewind:

  • Trump had said for days that he was leaning toward declaring a national emergency to jumpstart construction of the wall, and his administration had begun internal discussions about how to proceed.
  • During a border visit Thursday viewed widely in Washington as a wind-up to an emergency declaration, Trump told Fox News host Sean Hannity that "if we don't make a deal with Congress, most likely I will do that."

But Trump stepped back from that statement Friday, saying he rather cut a deal with Democrats who've fiercely opposed his $5.7-billion border wall funding request.

 

So what changed? A group of Republican lawmakers and White House officials, including Jared KushnerJared Corey KushnerTrump's 'soldier of fortune' foreign policy The Hill's Morning Report - 2020 Democrats set for Lone Star showdown Exclusive: Kushner tells GOP it needs to unify behind immigration plan MORE, have urged Trump not to declare an emergency. They say the chances of starting constriction right away are slim because of the legal challenges the declaration would draw.

 

No end in sight: Talks between Trump and Democratic congressional leaders have gone nowhere this week. With no progress made toward a funding bill and the emergency declaration off the table for now, the White House is bracing for a longer shutdown.

The Wall Street Journal reported Friday that the Office of Management and Budget is planning for the partial shutdown to stretch through February.

 

Financial pain sets in: Friday is the first day that hundreds of thousands of federal employees will miss their paychecks. That's left a major chunk of the federal workforce at risk of missing mortgage payments, other bills and even basic necessities.

The House on Friday passed a bill to ensure that workers sidelined by this shutdown and any in the future will receive back pay for missed checks.

Seven House Republicans, though, voted no: Reps. Justin AmashJustin AmashTrump's 'soldier of fortune' foreign policy Amash: 'Bolton never should have been hired' Romney: Bolton firing 'a huge loss' for nation MORE (Mich.), Andy Biggs (Ariz.), Paul GosarPaul Anthony GosarOvernight Energy: House moves to block Trump drilling | House GOP rolls out proposal to counter offshore drilling ban | calls mount for NOAA probe House approves two bills to block Trump drilling House GOP rolls out energy proposal to counter Democrats offshore drilling ban MORE (Ariz.), Glen Grothman (Wis.), Thomas MassieThomas Harold MassieScalise blasts Democratic legislation on gun reforms Airports already have plenty of infrastructure funding Overnight Defense: House votes to block Trump arms sales to Saudis, setting up likely veto | US officially kicks Turkey out of F-35 program | Pentagon sending 2,100 more troops to border MORE (Ky.), Chip RoyCharles (Chip) Eugene RoyTexas Republicans sound alarm about rapidly evolving state GOP lawmakers call for provisions barring DOD funds for border wall to be dropped Lawmakers mark anniversary of Martin Luther King 'I have a dream' speech MORE (Texas) and Ted YohoTheodore (Ted) Scott YohoCNN slams GOP for not appearing on network after mass shootings, conservatives fire back Conservatives call on Pelosi to cancel August recess The 27 Republicans who voted with Democrats to block Trump from taking military action against Iran MORE (Fla.).

Trump has pledged to sign the bill, which passed the Senate yesterday.

Even so, federal employees won't receive any of that money until the shutdown ends, hitting workers living paycheck-to-paycheck the hardest. Banks and credit unions are scrambling to help those workers with mortgage payment deferrals, low or no-interest loans and overdraft protection.

But at some point, lenders will be forced to make tough decisions about how much they can aid workers if the shutdown lasts as long as the White House is expecting.

Rob Nichols, president of the American Bankers Association, urged the "administration and Congress to end the standoff before it does any more damage to the economy, federal employees and everyday citizens."

"Our member banks across the country report that the shutdown is starting to take a toll on local communities, preventing customers from securing mortgage approvals and small business loans, while threatening even more harm if the impasse continues," Nichols said.

 

LEADING THE DAY

House Dems pass more funding bills: The House approved legislation that would fund and reopen the Interior Department, Environmental Protection Agency and Forest Service in an 240-179 vote on Friday, the latest effort by Democrats to put pressure on Republicans and President Trump to end the partial shutdown.

Ten Republicans joined Democrats in voting for the measure. They were GOP Reps. Rodney DavisRodney Lee DavisGroups push lawmakers for hearings on voting machine security House Democrats targeting six more Trump districts for 2020 House Democrats target 2020 GOP incumbents in new ad MORE (Ill.), Brian FitzpatrickBrian K. FitzpatrickHouse Democrats targeting six more Trump districts for 2020 Ensuring quality health care for those with intellectual disabilities and autism House Democrats target 2020 GOP incumbents in new ad MORE (Pa.), Jaime Herrera BeutlerJaime Lynn Herrera BeutlerDems push to revive Congress' tech office Bill allowing Congress to hire Dreamers advances House fails to override Trump veto on border wall MORE (Wash.), Will HurdWilliam Ballard HurdGOP struggles with retirement wave Here are the lawmakers who aren't seeking reelection in 2020 Pelosi: GOP retirements indicate they'll be in the minority, with Democrat in the White House MORE (Texas), John KatkoJohn Michael KatkoHillicon Valley: Google to promote original reporting | Senators demand answers from Amazon on worker treatment | Lawmakers weigh response to ransomware attacks Lawmakers weigh responses to rash of ransomware attacks Hillicon Valley: Twitter CEO Jack Dorsey's account hacked | Google found iPhone security bug | YouTube reportedly to pay up to 0M to settle child privacy investigation | DNC expected to nix Iowa virtual caucus plans MORE (N.Y.), Adam KinzingerAdam Daniel KinzingerBolton returns to political group after exiting administration Overnight Defense: Trump ousts Bolton in shocker | Fallout, reaction from GOP senators | Senate spending talks in chaos | Dems eye vote to nix Trump border emergency The Hill's 12:30 Report: Bolton out as national security adviser MORE (Ill.), Chris SmithChristopher (Chris) Henry SmithUS meddling in Hong Kong could trigger a tragedy Republicans plot comeback in New Jersey The 9 House Republicans who support background checks MORE (N.J.), Elise StefanikElise Marie StefanikBarbra Streisand calls for end to 'antiquated' Electoral College Republican lawmakers ask Trump not to delay Pentagon cloud-computing contract Rising number of GOP lawmakers criticize Trump remarks about minority Dems MORE (N.Y.), Fred UptonFrederick (Fred) Stephen UptonRepublicans pour cold water on Trump's term limit idea The Hill's Morning Report - Can Trump save GOP in North Carolina special election? Wave of GOP retirements threatens 2020 comeback MORE (Mich.) and Greg WaldenGregory (Greg) Paul WaldenDemocrats hold first hearing in push for clean energy by 2050 EXCLUSIVE: Swing-state voters oppose 'surprise' medical bill legislation, Trump pollster warns House panel investigating private equity firms' role in surprise medical billing MORE (Ore.).

It was the fourth measure approved by the Democratic-controlled House this week. Democrats are voting on a series of bills to open up the parts of the government closed since Dec. 22, which has left about 800,000 federal workers furloughed or working without pay.

Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellLawmakers run into major speed bumps on spending bills Budowsky: Donald, Boris, Bibi — The right in retreat Hillicon Valley: Zuckerberg to meet with lawmakers | Big tech defends efforts against online extremism | Trump attends secretive Silicon Valley fundraiser | Omar urges Twitter to take action against Trump tweet MORE (R-Ky.) has said he will not bring any of the bills up to a vote in the Senate until there is a deal between Trump and Democrats on the president's demand for border wall funding. The Hill's Juliegrace Brufke has more here.

 

Unions sue over shutdown: Federal employee unions filed a lawsuit Friday alleging that the government is violating federal labor laws by requiring employees deemed "essential" to continue working through the partial shutdown without pay.

The lawsuit in the U.S. Court of Federal Claims in Washington, D.C., was brought by the National Federation of Federal Employees, the National Association of Government Employees SEIU, the National Weather Service Employees Organization and the law firm Snider & Associates on behalf of federal workers.

The 19-page complaint accuses the federal government of violating the Fair Labor Standards Act by not paying workers overtime and minimum wage. The Hill's Lydia Wheeler has more here.

  

GOP senators pitch immigration-wall deal as shutdown talks stall: A pair of Republican senators introduced legislation on Friday that would pair President Trump's border funding request with a fix for an Obama-era immigration program, as lawmakers hunt for an end to the ongoing partial government shutdown. The Hill's Jordain Carney tells us more here.

 

GOOD TO KNOW

 

ODDS AND ENDS

  • The marijuana industry is boasting its largest lobbying team in Washington ever, as it gears up to push through major legislation in 2019.
  • The Trump administration is considering moving forward with a major conservative change to Medicaid by allowing states to get block grants for the program.