On The Money: Pelosi, Trump tout deal on new NAFTA | McConnell says no trade vote until impeachment trial wraps up | Lawmakers push spending deadline to Thursday

On The Money: Pelosi, Trump tout deal on new NAFTA | McConnell says no trade vote until impeachment trial wraps up | Lawmakers push spending deadline to Thursday
© Greg Nash

Happy Tuesday and welcome back to On The Money, the "biggest and best" financial newsletter in the "history of the world." 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.

ADVERTISEMENT

 

THE BIG DEAL--Pelosi announces support for new Trump NAFTA deal: House Democrats on Tuesday announced an agreement with President TrumpDonald John TrumpTrump says inviting Russia to G7 'a question of common sense' Pentagon chief does not support invoking Insurrection Act Dershowitz: Does President Trump have power to declare martial law? MORE on a historic deal revamping the North American Free Trade Agreement (NAFTA) with Canada and Mexico, setting up a full vote as early as next week.

"This is a day we've all been working to and working for on the path to yes," Speaker Nancy PelosiNancy PelosiTrump congratulates Steve King challenger on GOP primary win The Hill's Morning Report - Protesters' defiance met with calls to listen Calls for police reform sparks divisions in Congress MORE (D-Calif.) said at a news conference to tout the deal that was held just an hour after she appeared before the cameras to announce two articles of impeachment against Trump.

The Hill's Niv Elis and I tell you more about the road ahead here.

Why Trump wants it: Passage of the trade deal would provide a significant legislative win for Trump that might only be topped by his tax-cut bill, which was approved by a GOP-held House in 2017.

  • Trump's opposition to NAFTA was key to his 2016 victories in Ohio, Michigan, Wisconsin, and Pennsylvania--four industrial states where the deal cost thousands of manufacturing jobs.
  • Successfully revising NAFTA could boost Trump's standing in those states as the president attempts to reassemble his winning coalition in 2020. 

 

ADVERTISEMENT

Why Pelosi wants it:  Pelosi is also casting the trade pact as a political win that shows her caucus can legislate even as they move toward just the third impeachment of a U.S. president in history. 

  • Republicans have sought to make the case that Democrats are obsessed only with impeachment, and they have frequently brought up the trade deal in that context.
  • The Speaker also was careful to highlight changes to the originally negotiated text that helped win an endorsement from the AFL-CIO, and that underscored her argument that it was a win for progressives.

 

Reactions: 

 

What comes next: Trump is eager to pass USMCA before the end of the year, and House leaders are mulling ways to expedite the deal amid pending votes on impeachment and government funding. 

They are still deliberating whether to use a fast-track process known as trade promotion authority (TPA), which has additional requirements, and whether to mark up the bill in committee. 

But McConnell's hesitance to take up USMCA until after impeachment could set up a fight with the White House, which insists on passing the deal before the end of the year.

 

Read more: 

 

ON TAP TOMORROW:

 

LEADING THE DAY

Lawmakers push spending deadline to Thursday: Lawmakers broke up their meeting on Tuesday with no deal to fund the government as the clock ticked toward a Dec. 20 deadline.

Appropriators face a long series of obstacles to reach a deal and prevent either having to pass a short-term spending measure to keep the government open, or seeing federal agencies shut down.

House Appropriations Chairwoman Nita LoweyNita Sue LoweyJulián Castro launches PAC to support progressive candidates Lawmakers call on VA to remove swastikas from headstones in veterans cemeteries House Democrats object to Trump sending ventilators to Russia MORE (D-N.Y.) and Senate Appropriations Chairman Richard ShelbyRichard Craig ShelbyHouse pushes back schedule to pass spending bills Top Republican says Trump greenlit budget fix for VA health care GOP senators not tested for coronavirus before lunch with Trump MORE (R-Ala.) had hoped to button up a deal by Sunday, and kept working into the week on a slew of tough issues that include President Trump's proposed border wall, immigration enforcement, abortion-related issues, and Trump's use of emergency powers to reprogram money toward the wall.

Niv Elis tells us more about what happened at the meeting here.

 

ADVERTISEMENT

House panel to consider temporarily repealing SALT deduction cap: The House Ways and Means Committee is scheduled on Wednesday to consider legislation that would temporarily repeal a portion of Republicans' 2017 tax-cut law, which is disliked by politicians in Democratic-leaning high-tax states.

The bill -- offered by Reps. Tom Suozzi (D-N.Y.), Mike ThompsonCharles (Mike) Michael ThompsonGun control group rolls out House endorsements The Hill's Coronavirus Report: Chef José Andrés says most political leaders today are not acting with urgency; Dems crafting 'Rooseveltian' relief package Business interruption insurance bills will help small businesses through national emergencies MORE (D-Calif.) and Bill Pascrell (D-N.J.) -- would repeal the $10,000 cap on the state and local tax (SALT) deduction for 2020 and 2021. It also would raise the cap to $20,000 for married couples in 2019.

  • To offset the costs of the changes to the SALT deduction cap, the bill would raise the top individual income tax rate from 37 percent to its pre-GOP tax law level of 39.6 percent, and it would also lower the income threshold for where that top bracket starts. 
  • The proposed changes would be in effect from 2020 through 2025, after which time the individual tax changes in the 2017 law, including the SALT deduction cap, expire.

The Hill's Naomi Jagoda has more here.

 

GOOD TO KNOW

  • The New York Times: "A U.S. offensive against the World Trade Organization will effectively shutter the group's system for settling disputes, at a time it's most needed."
  • Progressive leaders in the House said Tuesday they are hoping to avoid a standoff with Democratic leaders following a meeting with Speaker Nancy Pelosi (D-Calif.) on her sweeping bill to lower drug prices.