On The Money — Presented by Job Creators Network — GOP senators urge Trump not to nominate Cain | Treasury expected to miss Dem deadline on Trump tax returns | Party divisions force Dems to scrap budget vote | House passes IRS reform bill

Happy Tuesday 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-- GOP senators urge Trump not to pick Cain for Fed: A number of Republican senators are speaking out against President TrumpDonald John TrumpSarah Huckabee Sanders becomes Fox News contributor The US-Iranian scuffle over a ship is a sideshow to events in the Gulf South Korea: US, North Korea to resume nuclear talks 'soon' MORE's plan nominate Herman Cain to the Federal Reserve Board, questioning his character and qualifications to serve on the independent central bank.

Trump said last week that he intends to nominate Cain for the Fed board, but senators on Tuesday publicly raised concerns, citing the accusations of sexual harassment that derailed Cain's 2012 presidential campaign and his leadership of a super PAC supporting Trump's reelection.

 

The dynamic: Cain was accused of sexual harassment in 2011 by four women, two of whom had previously settled with the National Restaurant Association, a Washington, D.C., trade group Cain led from 1996 to 1999. Cain has denied all the allegations.

Democrats would likely vote unanimously against Cain, and his confirmation could be blocked if four of the 53 Republican senators oppose him. That path became more difficult Tuesday after new resistance among Republicans.

 

Even those who touted Cain's experience said they had questions about his character.

 

 

ON TAP TOMORROW

 

LEADING THE DAY

Treasury expected to miss Dem deadline on Trump tax returns: The Trump administration is expected to miss the Wednesday deadline set by Democrats to hand over President Trump's tax returns, raising the odds that the battle will turn into a lengthy court fight.

Treasury Secretary Steven MnuchinSteven Terner MnuchinTrump says he'll decide on foreign aid cuts within a week Democrats push judge for quick action on Trump tax returns lawsuit Five key players in Trump's trade battles MORE testified to two congressional committees on Tuesday, telling lawmakers the White House had discussed the tax-return issue with Treasury's legal department before Democrats asked for the documents. Mnuchin said he personally had not spoken to Trump over the tax returns.

Trump has said he cannot make the records public because of an audit, and his acting chief of staff on Sunday publicly said the administration will never hand them over to Democrats.

Mnuchin was much more reserved in his remarks, telling reporters that it would be a "good guess" that the administration would reply to Democrats by Wednesday in some form.

"I think it would be premature at this point to make any specific comments other than, as I've been consistent before in saying, it is being reviewed by the legal departments and we look forward to responding to the letter," he said at a House Appropriations subcommittee hearing.

The Hill's Naomi Jagoda has more here on Mnuchin's testimony.

And click here for more on the deadline.

 

Left-center divide forces Dems to scrap budget vote: Democrats on Tuesday pulled the plug on an expected vote to set the budget for spending this year after objections from their own caucus to the top-line numbers.

The plan to schedule a vote on the numbers for Wednesday was scrapped after it became clear that the measure would fail.

"I don't think we'd have the votes if we went to the floor right now," said Budget Committee Chairman John YarmuthJohn Allen YarmuthTrump says he'll decide on foreign aid cuts within a week Trump signs two-year budget deal Lawmakers point to entitlements when asked about deficits MORE (D-Ky.) "It's not going to happen."

The bill would have increased defense spending in 2020 by $17 billion and nondefense spending by $34 billion, bringing the total to $664 billion for defense and $631 billion for nondefense spending. The Hill's Niv Elis tells us why Democrats had to scrap the vote here.

  • Progressives were pushing for an amendment to raise nondefense spending by an additional $33 billion, which would put it on par with defense spending. Without the amendment, many progressives threatened to vote against the legislation.
  • The 27-member Blue Dog Democrats, in the meantime, applied pressure from the other side, raising alarms about increased spending. Most of that group's members were willing to back the deal, but a dozen of them threatened to oppose it unless spending was cut further, according to a Democratic aide.

 

GOOD TO KNOW

 

ODDS AND ENDS