On The Money: Senate passes disaster aid bill after deal with Trump | Trump to offer $16B aid package for farmers | House votes to boost retirement savings | Study says new tariffs to double costs for consumers

On The Money: Senate passes disaster aid bill after deal with Trump | Trump to offer $16B aid package for farmers | House votes to boost retirement savings | Study says new tariffs to double costs for consumers
© UPI Photo

Happy Thursday and welcome back to On The Money, where we love a little bit of storm-related irony so long as no one gets hurt. 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.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.

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

 

THE BIG DEAL-- Senate passes disaster aid bill after deal with Trump: The Senate easily cleared a long-stalled disaster aid package after Republicans reached a deal with President TrumpDonald John TrumpRepublicans aim to avoid war with White House over impeachment strategy New York Times editorial board calls for Trump's impeachment Trump rips Michigan Rep. Dingell after Fox News appearance: 'Really pathetic!' MORE to drop border-related provisions from the bill.

Senators voted 85-8 on the legislation, which provides $19.1 billion in recovery money for a recent slate of wildfires, hurricanes and storms. GOP Sens. Marsha BlackburnMarsha BlackburnTikTok chief cancels Capitol Hill meetings, inflaming tensions Lawsuits pose new challenge for TikTok TikTok's leader to meet with lawmakers next week MORE (Tenn.), Mike BraunMichael BraunRepublicans consider skipping witnesses in Trump impeachment trial College Republicans launch campaign calling for GOP to take action on climate change Senate braces for brawl on Trump impeachment rules MORE (Ind.), Mike CrapoMichael (Mike) Dean CrapoGOP senator blocks bill aimed at preventing Russia election meddling The job no GOP senator wants: 'I'd rather have a root canal' Lawmakers battle over future of Ex-Im Bank MORE (Idaho), Mike LeeMichael (Mike) Shumway LeeSenators zero in on shadowy court at center of IG report The Hill's Morning Report - Sponsored by AdvaMed - House panel expected to approve impeachment articles Thursday Five takeaways on Horowitz's testimony on Capitol Hill MORE (Utah), Martha McSallyMartha Elizabeth McSallySeven years after Sandy Hook, the politics of guns has changed The Hill's Morning Report — Sponsored by AdvaMed — House panel delays impeachment vote until Friday White House makes push for paid family leave and child care reform MORE (Ariz.), Rand PaulRandal (Rand) Howard PaulSunday Talk Shows: Lawmakers look ahead to House vote on articles of impeachment, Senate trial Pentagon to take bigger role in vetting foreign students after Pensacola shooting Overnight Defense: House passes compromise defense bill | Turkey sanctions advance in Senate over Trump objections | Top general says military won't be 'raping, burning and pillaging' after Trump pardons MORE (Ky.), Jim RischJames (Jim) Elroy RischOvernight Defense: House passes compromise defense bill | Turkey sanctions advance in Senate over Trump objections | Top general says military won't be 'raping, burning and pillaging' after Trump pardons Legislation to protect electric grid from cyberattacks added to massive defense bill Lankford to be named next Senate Ethics chairman MORE (Idaho) and Mitt RomneyWillard (Mitt) Mitt RomneyIs a trap being set for Trump in the Senate trial? The Hill's Morning Report — Sponsored by AdvaMed — House panel delays impeachment vote until Friday Senate gears up for battle over witnesses in impeachment trial MORE (Utah) voted against the bill.

ADVERTISEMENT

The House has already left for the weeklong Memorial Day recess. But a Democratic leadership aide said the caucus supports the measure and hopes to clear it by unanimous consent on Friday. The Hill's Jordain Carney tells us how we got here.

  • "We've proposed ... that we come forth with a clean disaster package, a lot of things off including border security stuff, just disaster, basically. And the president said OK," Shelby told reporters.
  • The deal, according to a GOP appropriations aide, includes a total of $19.1 billion for disaster recovery.

 

Breaking down the bill:

  • In a win for Democrats, it also includes $600 million in food stamp money for Puerto Rico and an additional $300 million in Housing and Urban Development (HUD) grants for the commonwealth.
  • The Senate's original disaster bill, which included only the food stamp funding, derailed after Trump criticized Puerto Rico's handling of recovery money during a closed-door GOP lunch. Lawmakers acknowledged earlier this week that they had finalized that portion of the package.

 

LEADING THE DAY

Trump administration announces $16B aid package for farmers hurt by trade war with China: The assistance will provide direct payments to help farmers make up for losses resulting from retaliatory tariffs Beijing imposed on major U.S. crops. Limited access to China's market has helped drive down the price of agricultural commodities since the collapse of trade talks earlier this month.

  • Beijing increased tariffs on $60 billion in U.S. goods in response to Trump's decision to raise tariffs on $250 billion in Chinese imports to 25 percent.
  • The program is similar to a $12 billion aid package Trump approved last year amid heightened trade tensions with China.
  • It is expected to last through the rest of the year, with the first batch of payments sent out in late July or early August. The president had previously said tariff revenue would help fund the aid package but the program as described by the Agriculture Department is not expected to directly use money collected from tariffs.

"President Trump has great affection for America's farmers and ranchers, and he knows they are bearing the brunt of these trade disputes," Agriculture Secretary Sonny PerdueGeorge (Sonny) Ervin PerduePlan to lift roadless rule in Alaska's Tongass national forest threatens economy House Democrat asks USDA to halt payouts to Brazilian meatpacker under federal probe From state agriculture departments to Congress: Our farmers need the USMCA MORE said in a statement. "In fact, I've never known of a president that has been more concerned or interested in farmer wellbeing and long-term profitability than President Trump."

 

New Trump tariffs double costs to consumers, lower tax revenue, study shows:

President Trump's latest tariff increases on Chinese imports brought the annual cost of import taxes to $831 per household, according to a study on the New York Federal Reserve's blog.

The study by Mary Amiti, Stephen J. Redding, and David E. Weinstein found Trump's decision to increase tariffs on $200 billion of Chinese imports from 10 percent to 25 percent doubles the cost to American households compared to all his previous tariffs.

The increased cost to consumers amounts to $106 billion a year.

But the higher tariffs could actually lead to a drop in revenue for the Treasury Department, because the price increase is large enough to push consumers to buy alternative offerings from countries such as Vietnam.

"According to our estimates, these higher tariffs are likely to create large economic distortions and reduce U.S. tariff revenues," the authors concluded. The Hill's Niv Elis breaks down the study here.

 

House votes to boost retirement savings: The House on Thursday passed a bipartisan bill aimed at boosting retirement savings that also fixes an issue with the GOP tax law.

The bill, known as the SECURE Act, passed by a vote of 417-3. The three lawmakers who voted against the bill were GOP Reps. Justin AmashJustin AmashGroup of House Democrats reportedly attended the White House ball Group of Democrats floating censure of Trump instead of impeachment: report Democrats gear up for high-stakes Judiciary hearing MORE (Mich.), Thomas MassieThomas Harold MassieThe Hill's Morning Report — Pelosi makes it official: Trump will be impeached Hillicon Valley: House passes anti-robocall bill | Senators inch forward on privacy legislation | Trump escalates fight over tech tax | Illinois families sue TikTok | Senators get classified briefing on ransomware House passes anti-robocall bill MORE (Ky.) and Chip RoyCharles (Chip) Eugene RoyDemocrats launch bilingual ad campaign off drug pricing bill Congressional Hispanic Caucus campaign arm endorses two Texas Democrats Congressional investigation finds Coast Guard leadership fell short on handling bullying MORE (Texas).

The bill includes a number of provisions designed to encourage businesses to offer retirement plans and to make it easier for people to save for their retirements.

These include provisions that would make it easier for small businesses to join together to offer retirement plans, treat graduate students' stipends as compensation for purposes concerning individual retirement accounts (IRA), allow long-term and part-time workers to participate in companies' 401(k) plans, and eliminate the age maximum for contributing to IRAs.

The bill also would reverse changes that the GOP tax law made to a tax on children's unearned income known as the "kiddie tax." The changes unintentionally raised taxes on certain income received by children, such as benefits received by the children of deceased military members and first responders.

The Hill's Naomi Jagoda has more on the bill and what's next in the Senate.

 

Drink up: The trade war is also bad news for the brews: A study by the Beer Institute and National Beer Wholesalers Association found that direct, indirect and induced jobs dropped to 2.19 million in 2018 from 2.23 million in 2016, according to Bloomberg News, and insiders say Trump's steel and aluminum tariffs are the cause.

 

GOOD TO KNOW:

  • Two House Appropriations subcommittees on Thursday passed spending bills that defy President Trump's requests to slash spending on agriculture, transportation and housing.
  • The Dow Jones Industrial Average plunged 375 points, or 1.4 percent, in the opening hour of trading Thursday morning, amid fears that President Trump's trade war with China is escalating. It closed down 286 points.
  • JPMorgan Chase, the largest bank in the United States by assets, will reportedly no longer offer its services to OxyContin producer Purdue Pharma over the company's alleged role in the country's opioid crisis.

 

ODDS AND ENDS

  • A top Huawei official said Thursday that the company will have its own operating system ready to replace Google and Microsoft smartphone and laptop software if permanently blocked from licensing the American products.