Trump meets with congressional Republicans as GOP lawmakers argue over tax and spending cuts

Trump meets with congressional Republicans as GOP lawmakers argue over tax and spending cuts
President Donald Trump talks to Senate Majority Leader John Thune, R-S.D., left and and House Speaker Mike Johnson, R-La., right. (AP)
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Updated 07 February 2025
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Trump meets with congressional Republicans as GOP lawmakers argue over tax and spending cuts

Trump meets with congressional Republicans as GOP lawmakers argue over tax and spending cuts
  • The standoff is creating frustration for Republicans as precious time is slipping and they fail to make progress on what has been their top priority

WASHINGTON: President Donald Trump hosted an unusually long meeting with House Republicans at the White House on Thursday, turning over prime workspace for them to hammer out differences over the size, scope and details of their multi-trillion plan to cut taxes, regulations and government spending.
Trump set the tone at the start of the five-hour session, lawmakers said, then left them alone for a meeting that ran so long that Speaker Mike Johnson missed his own one-on-one at the US Capitol with the Israeli Prime Minister Benjamin Netanyahu, who instead met with Democratic leaders and other lawmakers as the speaker’s office scrambled to reschedule.
“Very positive developments today,” Johnson said once he returned to the Capitol. “We’re really grateful to the president for leaning in and doing what he does best, and that is put a steady hand at the wheel and get everybody working.”
House and Senate GOP leaders have been desperately looking to Trump for direction on how to proceed on their budget bill, but so far the president has been noncommittal about the details — only pushing Congress for results.
The standoff is creating frustration for Republicans as precious time is slipping and they fail to make progress on what has been their top priority with their party in control in Washington. At the same time, congressional phone lines are being swamped with callers protesting Trump’s cost-cutting efforts led by billionaire Elon Musk against federal programs, services and operations.
White House press secretary Karoline Leavitt told reporters the president and lawmakers were discussing “tax priorities of the Trump administration,” including Trump’s promises to end federal taxation of tips, Social Security benefits and overtime pay. Renewing tax cuts Trump enacted in 2017 also was on the agenda, she said.
“The president is committed to working with Congress to get this done,” Leavitt said.
Johnson, despite the slimmest of majorities, has insisted Republicans will stay unified and on track to deliver on his goal of House passage of the legislation by April.
The chair of the House Budget Committee, Texas Rep. Jodey Arrington, returned from the meeting saying his panel will hold hearings on the package next week.
But as Johnson’s timeline slips — the House was hoping to start budget hearings this week — the Senate is making moves to take charge. GOP senators are heading to Trump’s private Mar-a-Lago club on Friday for their own meeting.
Republicans led by Senate Majority Leader John Thune of South Dakota have proposed a two-step approach, starting with a smaller bill that would include money for Trump’s US-Mexico border wall and deportation plans, among other priorities. They later would pursue the more robust package of tax break extensions before a year-end deadline.
Sen. Lindsey Graham, chairman of the Senate Budget Committee, announced late Wednesday that he was pushing ahead next week with hearings to kickstart the process.
The dueling approaches between the House and Senate is becoming something of a race to see which chamber will make the most progress toward the GOP’s overall goals.
The House GOP largely wants what Trump has called a “big, beautiful bill” that would extend some $3 trillion in tax cuts that expire at the end of the year, and include a list of other GOP priorities, including funding for the president’s mass deportation effort and promised US-Mexico border wall. It include massive cuts from a menu of government programs — from health care to food assistance — to help offset the tax cuts.
The smaller bill Graham is proposing would total some $300 billion and include border money and a boost in defense spending, largely paid for with a rollback of Biden-era green energy programs.
Graham, R-S.C., said that would give the Trump administration the money it needs to “finish the wall, hire ICE (Immigration and Customs Enforcement) agents to deport criminal illegal immigrants.”
“This will be the most transformational border security bill in the history of our country,” Graham said.
House Republicans are deeply split over Graham’s approach. But they are also at odds over their own ideas.
House GOP leaders are proposing cuts that would bring $1 trillion in savings over the decade, lawmakers said, but members of the conservative House Freedom Caucus want at least double that amount.
Rep. Chip Roy, R-Texas, said he’s looking for $2.5 trillion in spending cuts over 10 years, or $250 billion annually, as part of that plan, compared to a $1 trillion floor over 10 years that some in GOP leadership have discussed.
Roy and other members of the Freedom Caucus are interested in Graham’s approach, which is seen as a down payment on Trump’s immigration and deportation plans, while the party continues work on the broader tax and spending cuts package.
But Arrington, the House Budget Committee chair, has previously said the $2.5 trillion in spending reductions was a “stretch goal.”
Johnson, R-Louisiana, needs almost complete unanimity from his ranks to pass any bill over objections from Democrats. In the Senate, Republicans have a 53-47 majority, with little room for dissent.
Trump has repeatedly said he is less wed to the process used in Congress than the outcome of achieving his policy goals.


Russian missile and drone attack across Ukraine wounds at least 3 and causes damage

Updated 19 sec ago
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Russian missile and drone attack across Ukraine wounds at least 3 and causes damage

Russian missile and drone attack across Ukraine wounds at least 3 and causes damage
KYIV: Ukraine was under an ongoing Russian ballistic missile and drone attack early Friday that wounded at least three people, officials said.
Multiple explosions were heard in the capital, Kyiv, where falling debris sparked fires across several districts as air defense systems attempted to intercept incoming targets, said Tymur Tkachenko, head of the Kyiv City Administration.
Three people were wounded, local officials said. They urged residents to seek shelter.
“Our air defense crews are doing everything possible. But we must protect one another — stay safe,” Tkachenko wrote on Telegram.
Authorities reported damage in several districts, and rescue workers were responding at multiple locations.
In Solomyanskyi district, a fire broke out on the 11th floor of a 16-story residential building. Emergency services evacuated three people from the apartment, and rescue operations were ongoing. Another fire broke out in a metal warehouse.
Tkachenko said the metro tracks between two stations in Kyiv were damaged in the attack, but no fire or injuries occurred.
In northern Chernihiv region, a Shahed drone exploded near an apartment building, shattering windows and doors, according to regional military administration chief Dmytro Bryzhynskyi. He added that explosions from ballistic missiles were also recorded on the outskirts of the city.
The nighttime attack came hours after US President Donald Trump said it might be better to let Ukraine and Russia “fight for a while” before pulling them apart and pursuing peace, in comments that were a remarkable detour from Trump’s often-stated appeals to stop the three-year war.
Trump spoke as he met with Germany’s new chancellor, Friedrich Merz, who appealed to him as the “key person in the world” who could halt the bloodshed by pressuring Russian President Vladimir Putin.

Harvard files legal challenge over Trump’s ban on foreign students. Overseas, admitted students wait

Harvard files legal challenge over Trump’s ban on foreign students. Overseas, admitted students wait
Updated 06 June 2025
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Harvard files legal challenge over Trump’s ban on foreign students. Overseas, admitted students wait

Harvard files legal challenge over Trump’s ban on foreign students. Overseas, admitted students wait

Winning admission to Harvard University fulfilled a longtime goal for Yonas Nuguse, a student in Ethiopia who endured a war in the country’s Tigray region, Internet and phone shutdowns, and the COVID-19 pandemic — all of which made it impossible to finish high school on time.
Now, it’s unclear if he will make it this fall to the Ivy League campus in Cambridge, Massachusetts. He and other admitted students around the world are anxiously tracking the school’s feud with the Trump administration, which is seeking to keep it from enrolling international students.
On Thursday, Harvard challenged President Donald Trump’s latest move to bar foreign students from entering the US to attend the college, calling it illegal retaliation for Harvard’s rejection of White House demands. In an amended lawsuit filed Thursday, Harvard said the president was attempting an end-run around a previous court order. Last month, a federal judge blocked the Department of Homeland Security from revoking Harvard’s certification to host foreign students.
Admission to Harvard, then months of uncertainty
Increasingly, the nation’s oldest and best-known university has attracted some of the brightest minds from around the world, with international students accounting for one-quarter of its enrollment. As Harvard’s fight with the administration plays out, foreign students can only wait to find out if they’ll be able to attend the school at all. Some are weighing other options.
For Nuguse, 21, the war in Ethiopia forced schools to close in many parts of the province. After schooling resumed, he then took a gap year to study and save money to pay for his TOEFL English proficiency test in Addis Ababa, Ethiopia’s capital.
“The war affected me a great deal and when I found out the news that I was accepted to Harvard, I was ecstatic. I knew it was a proud moment for my family, teachers, mentors and friends, who were instrumental in my achievement,” he said.
The following months have been filled with uncertainty. On Wednesday, Trump signed a directive seeking to block US entry for Harvard’s international students, which would block thousands who are scheduled to come to the campus in Cambridge, Massachusetts, for summer and fall terms.
Harvard’s court challenge a day later attacked Trump’s legal justification for the action — a federal law allowing him to block a “class of aliens” deemed detrimental to the nation’s interests. Targeting only those who are coming to the US to study at Harvard doesn’t qualify as a “class of aliens,” Harvard said in its filing.
“The President’s actions thus are not undertaken to protect the ‘interests of the United States,’ but instead to pursue a government vendetta against Harvard,” the university wrote.
In the meantime, Harvard is making contingency plans so students and visiting scholars can continue their work at the university, President Alan Garber said in a message to the campus and alumni.
“Each of us is part of a truly global university community,” Garber said Thursday. “We know that the benefits of bringing talented people together from around the world are unique and irreplaceable.”
Crackdown on international students affects interest in the US
The standoff with Harvard comes as the administration has been tightening scrutiny of student visas nationwide. Thousands of students around the country abruptly lost permission to be in the US this spring before the administration reversed itself, and Secretary of State Marco Rubio announced last week the US would “aggressively revoke” visas for students from China.
While many admitted students say they’re waiting to find out if they can come to the US, prospective students still in high school are starting to look elsewhere, said Mike Henniger, CEO of Illume Student Advisory Services.
“It is one blow after another,” said Henniger, who works with colleges in the US, Canada and Europe to recruit international students. “At this point, international student interest in the US has basically dropped to nil.”
The future of Harvard’s roughly 7,000 international students has been hanging in the balance since the Department of Homeland Security first moved to block its foreign enrollment on May 22.
For many, the twists and turns have been exhausting. Jing, a 23-year-old master’s student, is currently completing an internship in China this summer, and unsure if he can reenter the US for the fall semester.
“It is tiring, we all feel numb now. Trump just makes big news headlines once every few days since he got back to the White House,” said Jing, who agreed to speak under his family name out of concern about retaliation from the Trump administration.
Jing said he is going to watch and see what happens for now, in case the move against international students is a negotiating tactic that does not stick.
The possibility that Trump could block foreign enrollment at other colleges only raises the uncertainty for students planning to pursue their education overseas, said Craig Riggs, who has been working in international education for about 30 years and is the editor of ICEF Monitor. He said he urges families to consult carefully with advisers and not to overreact to the day’s headlines.
“The rules under which students would make this huge decision to devote years of their lives and quite a bit of money to studying at Harvard have been shown to change quite quickly,” Riggs said.
An aspiring economist, Nuguse was the only student accepted to Harvard this year from Kalamino Special High School, which caters to gifted students from underprivileged backgrounds from across Tigray.
After receiving acceptances also to Columbia University and Amherst College, Nuguse chose Harvard, which he had long dreamed of attending. He said he hopes it will work out to attend Harvard.
Nuguse was granted a visa to study at Harvard, and he worries it might be too late to reverse his decision and attend another university anyway. He received an email from Harvard last week, telling him to proceed with his registration and highlighting a judge’s order in Harvard’s favor in the dispute over foreign enrollment.
“I hope the situation is temporary and I can enroll on time to go on and realize my dream far from reality in Ethiopia,” he said.


Trump says it may be better to let Ukraine, Russia ‘fight for a while’ as Merz blames Putin for war

Trump says it may be better to let Ukraine, Russia ‘fight for a while’ as Merz blames Putin for war
Updated 06 June 2025
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Trump says it may be better to let Ukraine, Russia ‘fight for a while’ as Merz blames Putin for war

Trump says it may be better to let Ukraine, Russia ‘fight for a while’ as Merz blames Putin for war
  • Likens Ukraine-Russia war to a fight between two children who hate each other
  • Vows to be “very, very tough” to both Russia and Ukraine “when I see the moment where it’s not going to stop”

WASHINGTON: President Donald Trump said Thursday that it might be better to let Ukraine and Russia “fight for a while” before pulling them apart and pursuing peace, even as Germany’s new chancellor appealed to him as the “key person in the world” who could halt the bloodshed by pressuring Vladimir Putin.
In an Oval Office meeting with Chancellor Friedrich Merz, the US president likened the war in Ukraine — which Russia invaded in February 2022 — to a fight between two children who hate each other. Trump said that with children, “sometimes you’re better off letting them fight for a while and then pulling them apart,” adding that he relayed the analogy to Putin in a call this week.
“I said, ‘President, maybe you’re going to have to keep fighting and suffering a lot,’ because both sides are suffering before you pull them apart, before they’re able to be pulled apart,” Trump said. “You see in hockey, you see it in sports. The referees let them go for a couple of seconds, let them go for a little while before you pull them apart.”

 

The comments were a remarkable detour from Trump’s often-stated appeals to stop the violence in Ukraine — and he again denounced the bloodshed Thursday even as he floated the possibility that the two countries should continue the war for a time. Merz carefully sidestepped Trump’s assertions and emphasized that the US and Germany both agree on “how terrible this war is,” while making sure to lay blame squarely on Putin for the violence and make the point that Germany was siding with Ukraine.
“We are both looking for ways to stop it very soon,” Merz said in the Oval Office. “I told the president before we came in that he is the key person in the world who can really do that now by putting pressure on Russia.”
Thursday’s meeting was the first time the two leaders sat down in person, and Merz left the public portion unscathed as he successfully avoided the kind of made-for-TV confrontation in the Oval Office that befell other world leaders such as Ukraine’s Volodymyr Zelensky and Cyril Ramaphosa, the president of South Africa. Trump and Merz began by exchanging pleasantries — Merz gave Trump a gold-framed birth certificate of the US president’s grandfather Friedrich Trump, who emigrated to America from Kallstadt, Germany, and Trump called the chancellor a “very good man to deal with.”

 

“He’s difficult, I would say? Can I say that? It’s a positive. You wouldn’t want me to say you’re easy, right?” Trump said, gently ribbing Merz. “He’s a very great representative of Germany.”
Merz told German reporters after the White House meeting that he had invited Trump to visit Germany, “his home country,” and added that the two leaders “get along well on the personal level.”
Trump and Merz had previously spoken several times by phone since Merz took office on May 6. German officials say the two leaders have started to build a “decent” relationship. Merz avoided the antagonism that defined Trump’s relationship with one of his predecessors, Angela Merkel, in the Republican president’s first term.
Merz emphasizes Ukraine support
The 69-year-old Merz — who came to office with an extensive business background — is a conservative former rival of Merkel’s who took over her party after she retired from politics.
Merz has thrown himself into diplomacy on Ukraine, traveling to Kyiv with fellow European leaders days after taking office and receiving Zelensky in Berlin last week. He has thanked Trump for his support for an unconditional ceasefire while rejecting the idea of “dictated peace” or the “subjugation” of Ukraine and advocating for more sanctions against Russia.
On Thursday, Trump also kept the threat of sanctions on the table — but for both Russia and Ukraine. He said he has not looked at bipartisan Senate legislation that would impose harsh economic punishments on Moscow, but said of sanctions efforts that “they would be guided by me,” rather than Capitol Hill.
“When I see the moment where it’s not going to stop ... we’ll be very, very tough,” Trump said. “And it could be on both countries, to be honest. It takes two to tango.”
For Merz’s part, he used Friday’s anniversary of D-Day — when Allied forces launched an assault that began the liberation of Europe from German occupation — to appeal to Trump to help lead the ending of another violent war on the continent.
Merz noted that June 6, 1944, began the liberation of Germany from a Nazi dictator and that “American is again in a very strong position to so something on this war and ending this war.”
“That was not a pleasant day for you?” Trump interjected to the German leader when he referenced D-Day.

At home, Merz’s government is intensifying a drive that his immediate predecessor, Olaf Scholz, began to bolster the German military after Russia invaded Ukraine. In Trump’s first term, Berlin was a target of his ire for failing to meet the current NATO target of spending 2 percent of gross domestic product on defense, and Trump is now demanding at least 5 percent from allies.
Ahead of Thursday’s meeting, a White House official said the administration planned to stress to Germany that it should increase its defense spending and that the upcoming NATO summit in The Netherlands was a good opportunity to commit to Trump’s 5 percent pledge. But during an exchange with reporters, Trump praised Berlin: “I know that you’re spending more money on defense now and quite a bit more money. That’s a positive thing.”
Scholz set up a 100 billion euro ($115 billion) special fund to modernize Germany’s armed forces — called the Bundeswehr — which had suffered from years of neglect. Germany has met the 2 percent target thanks to the fund, but it will be used up in 2027. Merz has endorsed a plan for all allies to aim to spend 3.5 percent of GDP on their defense budgets by 2032, plus an extra 1.5 percent on potentially defense-related things like infrastructure.
Tariff trouble
Another top priority for Merz is to get Germany’s economy, Europe’s biggest, moving again after it shrank the past two years. He wants to make it a “locomotive of growth,” but Trump’s tariff threats are a potential obstacle for a country whose exports have been a key strength. At present, the economy is forecast to stagnate in 2025.
Germany exported $160 billion worth of goods to the US last year, according to the Census Bureau. That was about $85 billion more than what the US sent to Germany, a trade deficit that Trump wants to erase.
“Germany is one of the very big investors in America,” Merz told German reporters Thursday morning ahead of his visit with Trump. “Only a few countries invest more than Germany in the USA. We are in third place in terms of foreign direct investment.”
The US president has specifically gone after the German auto sector, which includes major brands such as Audi, BMW, Mercedes Benz, Porsche and Volkswagen. Americans bought $36 billion worth of cars, trucks and auto parts from Germany last year, while the Germans purchased $10.2 billion worth of vehicles and parts from the US Trump’s 25 percent tariff on autos and parts is specifically designed to increase the cost of German-made automobiles.
There’s only so much Merz can achieve on his view that tariffs “benefit no one and damage everyone” while in Washington, as trade negotiations are a matter for the European Union’s executive commission. Trump hinted at that Thursday, saying the trade situation will mostly depend on the negotiations with the 27-country bloc.
“We’ll end up hopefully with a trade deal,” Trump said. “Or we’ll do something. We’ll do the tariffs.”
Trump recently delayed a planned 50 percent tariff on goods coming from the European Union, which would have otherwise gone into effect this month.
 


Germany’s Merz says he agreed to boost cooperation with Trump on trade issues

Germany’s Merz says he agreed to boost cooperation with Trump on trade issues
Updated 06 June 2025
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Germany’s Merz says he agreed to boost cooperation with Trump on trade issues

Germany’s Merz says he agreed to boost cooperation with Trump on trade issues
  • Merz said he and Trump spoke at length about trade and tariffs during their meeting in Washington
  • Trump has set a July 9 deadline for the 27-bloc EU and other trading partners to reach trade deals and avert steep tariffs

WASHINGTON: Chancellor Friedrich Merz on Thursday said Germany, Europe’s largest economy, was ready to take over a greater leadership role on future trade agreements as the United States and the EU race to reach a trade deal before a July 9 deadline.
Merz told reporters he had a productive meeting with US President Donald Trump at the White House on Thursday, and the two men had agreed to strengthen cooperation on trade matters and other issues.
Merz said he and Trump spoke at length about trade and tariffs during their meeting in the Oval Office, and over a lunch, where Merz said he highlighted the manufacturing facilities operated by German automakers in the United States.
“We will send officials to further deepen these topics. We want to reach a mutual solution,” Merz told reporters, noting that while the European Union was responsible for setting trade policy, Germany had a significant role to play given the size of its exports.
Trump has set a July 9 deadline for the 27-bloc European Union and other trading partners to reach trade deals and avert steep tariffs. US and EU officials met in Paris on Wednesday and said negotiations were constructive and advancing quickly.

Europe, already facing a 50 percent tariff on steel and aluminum and a 25 percent levy on car imports, could see tariffs on its exports to the US surge from 10 percent to as high as 50 percent if no deal is reached.
Merz told ZDF German television that he told Trump that German automakers produced about 400,000 vehicles in the United States, about the same number as in Germany, with some of those vehicles then exported back to Germany.
“There is a balance,” he said. “Can we not acknowledge that for every car that is imported another car is exported by the same manufacturer and drop the tariffs?“
Merz said he would also address the issue with European Commission President Ursula von der Leyen, adding that there was scope and potential momentum to reach a solution.
“If a trade dispute escalates, that hurts everyone, also hurts the German manufacturers in America and the roughly one million families in America that are paid by German firms,” he told Germany’s ProSieben television station.
“I’m optimistic that we’ll make progress. But we’re not yet at the goal line.”


Tesla stock plunges as Musk’s feud with Trump over GOP tax bill spooks investors

Tesla stock plunges as Musk’s feud with Trump over GOP tax bill spooks investors
Updated 06 June 2025
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Tesla stock plunges as Musk’s feud with Trump over GOP tax bill spooks investors

Tesla stock plunges as Musk’s feud with Trump over GOP tax bill spooks investors
  • The drop on Thursday wiped out nearly $150 billion from Tesla’s market value

Shares of Elon Musk’s electric vehicle maker fell sharply Thursday as investors feared his dispute with President Donald Trump will hurt the company.
Tesla plunged closed down more than 14 percent as a disagreement over the US president’s budget bill turned nasty. After Musk said that Trump wouldn’t haven’t gotten elected without his help, Trump implied that he may turn the federal government against his companies, including Tesla and SpaceX.
“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts,” Trump wrote on his social messaging service Truth Social. “I was always surprised that Biden didn’t do it!”
The drop on Thursday wiped out nearly $150 billion from Tesla’s market value, partially reversing a big runup in the eight weeks since Musk confirmed that Tesla would testing an autonomous, driverless “robotaxi” service in Austin, Texas, this month.
Investors fear Trump might not be in such a rush to usher in a future of self-driving cars in the US, and that could slam Tesla because so much of its future business depends on that.
“There is a fear that Trump is not going to play Mr. Nice Guy when in come to autonomous,” said Wedbush Securities analyst Dan Ives. “The whole goal of robotaxis is to have them 20 or 25 cities next year. If you start to heighten the regulatory environment, that could delay that path.”
Trump’s threat to cut government contracts seem targeted more to another of Musk’s businesses, SpaceX, his privately held rocket company that received billions of dollars to send astronauts and cargo to the International Space Station, provide launches and do other work for NASA. The company is currently racing to develop a mega rocket for the space agency to sent astronauts to moon next year.
A subsidiary of SpaceX, the satellite Internet company Starlink, appears to also have benefited from Musk’s once-close relationship with the president.
On a trip with Trump to the Middle East last month, Musk announced that Saudi Arabia had approved his satellite service for aviation and maritime use. Though its not clear how much politics has played a role, a string of other recent deals for the company in Bangladesh, Pakistan, India and elsewhere has come as Trump has threatened tariffs and sent diplomats scrambling to please the president.
One measure of SpaceX’s success: A private financing round followed by a private sale of shares recently reportedly valued it at $350 billion, up from an estimated $210 billion just a year ago. Tesla shares initially got a lift from his support of Trump. In the weeks after Trump was elected, Tesla shares soared, hitting an all-time high on Dec. 17. But they gave back those gains during Musk’s time as head of a government cost-cutting group as Tesla’s reputation took a hit. They’ve recently popped higher again after Musk vowed to focus much more on Tesla and its upcoming launch of driverless taxis.