On The Money: Democrats set stage for next shutdown fight | House panel wraps up final 2020 spending bill | GOP senators, White House delay meeting on spending | Trump hits Fed over high interest rates

On The Money: Democrats set stage for next shutdown fight | House panel wraps up final 2020 spending bill | GOP senators, White House delay meeting on spending | Trump hits Fed over high interest rates
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Happy Tuesday and welcome back to On The Money, an Alex Morgan fan newsletter. 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--Democrats set stage for next shutdown fight while GOP, White House scrap meeting to prevent funding lapse: House Democrats on Tuesday advanced a Homeland Security spending bill that included no funding for President TrumpDonald John TrumpDavid Axelrod after Ginsburg cancer treatment: Supreme Court vacancy could 'tear this country apart' EU says it will 'respond in kind' if US slaps tariffs on France Ginsburg again leaves Supreme Court with an uncertain future MORE's proposed border wall, paving the way for a standoff with the Trump administration on the issue that led to the long partial government shutdown that ended earlier this year.

The House Appropriations Committee advanced the Homeland Security spending bill, which would also restrict a number of Trump's other immigration moves, in a party-line 29-20 vote. The House is expected to take up and pass the bill later in June.



The risk: Earlier this year, Trump triggered 35-day shutdown over what he called insufficient funding for his border wall. Republican lawmakers warned Tuesday that the president would not hesitate to shutter the government a second time over the issue.

  • Trump requested $8.8 billion for the wall in his 2020 budget proposal, more than the $5.7 billion Congress rejected in the deal that ended the shutdown, which only provided $1.38 billion.
  • Following that agreement earlier this year, the president declared a state of national emergency over the border, which would allow him to reprogram certain funds from departments such as the Pentagon toward building the wall.
  • Tuesday's bill rescinds $601 million from Customs and Border Protection, offsetting the amount Trump diverted from the Treasury Forfeiture Fund toward the project.


While the House teed up a bill that could end up a sticking point in a government shutdown, a budget meeting between top Republican senators and the White House was postponed.

The group had been set to meet on Tuesday afternoon in an attempt to get on the same page about how to move forward on a government funding bill ahead of the Oct. 1 deadline to avoid a shutdown.

But Senate Appropriations Committee Chairman Richard ShelbyRichard Craig ShelbyIs this any way for NASA to build a lunar lander? In-space refueling vs heavy lift? NASA and SpaceX choose both Budget deal sparks scramble to prevent shutdown MORE (R-Ala.) said the powwow was canceled because of scheduling conflicts with Treasury Secretary Steven MnuchinSteven Terner MnuchinThe Hill's Morning Report: How will Trump be received at G-7? White House won't move forward with billions in foreign aid cuts Trump says he'll decide on foreign aid cuts within a week MORE.

Shelby, Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellDavid Axelrod after Ginsburg cancer treatment: Supreme Court vacancy could 'tear this country apart' Pelosi asks Democrats for 'leverage' on impeachment Democrats press FBI, DHS on response to white supremacist violence MORE (R-Ky.), acting White House chief of staff Mick MulvaneyJohn (Mick) Michael MulvaneyTrump's latest plan to undermine Social Security Trump says he'll decide on foreign aid cuts within a week Dick Cheney to attend fundraiser supporting Trump reelection: report MORE, Mnuchin and Office of Management and Budget Director Russell Vought had been set to meet on Tuesday afternoon, but were rescheduled the meeting for Wednesday.


The group has a difficult task ahead of them:

  • Lawmakers have to pass 12 appropriations bills, either individually or as part of a package. So far the committee has passed none amid a stalemate over how to lift defense and nondefense spending caps.
  • Without an agreement, steep, across-the-board cuts, known as sequestration, are set to kick back in.


Of course, the one-day delay won't make or break the negotiations. But the early attempt at dealmaking shows how eager the Trump officials and senators are too avoid a shutdown, and how long it may take to get there.


The House, though, is pushing ahead with its work: The House Appropriations Committee on Tuesday advanced the $24.9 billion financial services and general government spending bill, the last of 12 annual spending bills to advance to the floor. 

"With this bill we complete our full committee markups and continue an orderly appropriations process to get the people's business done on time," said Nita LoweyNita Sue LoweyWhite House won't move forward with billions in foreign aid cuts Pelosi warns Mnuchin to stop 'illegal' .3B cut to foreign aid Appropriators warn White House against clawing back foreign aid MORE (D-N.Y.), the committee's chairwoman.

The bill was approved 30-21 along party lines.

The committee moved the 12 bills at a breakneck pace and plans to pass them in the House before June is up.

The first five will come to the floor Wednesday in one "mini-bus" package, followed by a second five-bill package next week. The remaining bills, including the financial services bill and the contentious homeland security spending bill that deals with immigration and the border, are likely to be packaged together as well.

The Hill's Niv Elis has the details here.



  • The House Financial Services Committee marks up legislation, 10 a.m.
  • A House Education and Labor subcommittee holds a hearing on Department of Labor overtime protections, 10:30 a.m.
  • A Senate Finance subcommittee holds a hearing on China's Belt and Road initiative, 2:30 p.m.



Trump hits Fed over high interest rates: 'They don't have a clue!'  President Trump on Tuesday complained that the Federal Reserve doesn't "have a clue" amid a series of tweets defending his use of tariffs and alleging that multiple currencies have been devalued against the dollar.

Trump has long criticized the Fed over the central bank's decision to raise interest rates. He reiterated that point on Tuesday for the second consecutive day while sharing a Bloomberg opinion piece that argued the low cost of travel to Europe has led to an overabundance of tourists.

"This is because the Euro and other currencies are devalued against the dollar, putting the U.S. at a big disadvantage. The Fed Interest rate way too high, added to ridiculous quantitative tightening! They don't have a clue!" Trump tweeted.


House kicks off antitrust probe into tech giants: Congress on Tuesday opened an investigation into tech companies and antitrust issues with a hearing on how the industry has upended the business model of the news media and other publishers.

At the first hearing in the House Judiciary Committee's bipartisan investigation into Silicon Valley's market power, the panel's subcommittee on antitrust heard from media advocates who accused internet giants such as Facebook and Google of having a stranglehold on digital advertising, and who urged lawmakers to level the playing field for publishers.

"Unfortunately in the news business, free riding by dominant online platforms, which aggregate and then reserve our content, has led to the lion's share of online advertising dollars generated off the back of news going to the platforms," said David Pitofsky, the general counsel for News Corp., which owns The Wall Street Journal. Here's more from The Hill's Harper Neidig.


  • The hearing came amid an unprecedented level of scrutiny in Washington over tech giants' market power and impact on competitors and consumers. But lawmakers have generally given little attention to what many see as the threat the tech industry poses to the news industry and the damage done to local news outlets.
  • The bipartisan leaders of the Judiciary Committee are pushing a short-term solution backed by the newspaper industry that would grant an antitrust exemption to media outlets, allowing them to collectively negotiate with companies like Facebook and Google for a larger slice of the digital advertising pie.


McCarthy offers support for lawmaker pay hike: House Minority Leader Kevin McCarthyKevin Owen McCarthySteve King defends remarks on rape, incest Omar says US should reconsider aid to Israel I'm not a Nazi, I'm just a dude: What it's like to be the other Steve King MORE (R-Calif.) on Tuesday expressed support for a proposal that would give members of Congress their first pay hike in years.

McCarthy said he would support legislation giving lawmakers a cost-of-living adjustment for the first time in a decade, saying he didn't want the House and Senate to become a place where only the rich could afford to serve.

The remarks from the House Republican leader came a day after Democrats pulled a bill from the House floor that would have provided the pay hike following a backlash from swing-district freshmen -- many of whom feared their votes for the bill would be attacked by GOP opponents.

"I do not want Congress at the end of the day to only be a place that millionaires serve. This should be a body of the people and I think it's something that should be looked at," McCarthy said at a press conference.

McCarthy acknowledged that sensitivity of the issue but said it's something Congress should consider. The Hill's Cristina Marcos has more on the issue and its politics.



  • Maryland Gov. Larry Hogan (R) on Tuesday asked Treasury Secretary Steven Mnuchin to rethink his decision to delay the release of a $20 bill featuring abolitionist and suffragette Harriet Tubman.
  • The liberal group Tax March announced on Tuesday that it is launching a bus tour to take aim at the 2017 Republican tax-cut law and to urge politicians and activists to push for policies that increase taxes on the rich.
  • The Treasury Department and IRS on Tuesday issued final regulations aimed at preventing residents of blue states from circumventing the GOP's tax law's cap on the state and local tax (SALT) deduction.
  • Jon Stewart on Tuesday excoriated lawmakers in emotional testimony for failing to attend a September 11th Victim Compensation Fund hearing, calling it "shameful" and "a stain on this institution."



  • Ten Democratic attorneys general from nine states and Washington, D.C., on Tuesday filed a lawsuit to block the $26 billion T-Mobile-Sprint merger, arguing that combining two of the country's four largest mobile carriers could harm competition and drastically raise prices for consumers.