Thune Explodes at Democrats as GOP Blocks SNAP Funding Bill
Good evening. Here's what we were watching on Wednesday while waiting for the government to reopen and Game 5 of the World Series to start.
'Weaponizing Hunger': GOP and Dems Trade Accusations as SNAP Benefits Set to Expire
On Day 29 of the government shutdown, tempers flared as Republican and Democratic leaders traded accusations and blame over the looming lapse in Supplemental Nutrition Assistance Program benefits that help feed 42 million people, with each side saying that the other is choosing to inflict pain on American families.
But as a November 1 funding deadline nears, it was Republicans who blocked a bill from Democratic Sen. Ben Ray Luján of New Mexico to keep food aid flowing, insisting that the best way Democrats can ensure that SNAP and the nutrition assistance program for women, infants and children can continue is by reopening the government. Luján was seeking to have his bill approved by unanimous consent.
"We're not going to pick winners and losers," Senate Majority Leader John Thune said. "It's time to fund everybody who's experiencing the pain from the shutdown. If Democrats really want to fund SNAP and WIC, I have a bill for them sitting right there at the desk - clean, nonpartisan CR to fund SNAP, WIC and the entire government, and all the many programs and people that Democrats' SNAP bill completely ignores."
Getting heated: Thune shouted at Democrats on the Senate floor, claiming that they were playing games with people's lives and looking for political cover to keep the shutdown going. He argued that Republicans have voted repeatedly for a "clean" funding bill to reopen the government and restore paychecks for federal workers along with SNAP and other benefits.
"We tried to do that 13 times! And you voted 'no' 13 times," Thune shouted across the aisle. "This isn't a political game. These are real people's lives that we're talking about. And you all have just figured out 29 days in that, oh, there might be some consequences, there are people who are running out of money."
While some Republicans want to ensure that SNAP benefits don't lapse, others are loath to ease pressure on Democrats to reopen the government. Thune also said that Trump would sit down with Democrats next week to discuss healthcare if they reopen the government.
'Weaponizing hunger': Senate Democratic Leader Chuck Schumer said Republicans bore the blame for the impending lapse in food aid. He added that he was also prepared to vote for a competing bill from Republican Sen. Josh Hawley of Missouri, which would provide funding just for SNAP. "Ask John Thune why he won't put it on the floor," Schumer said. "He knows there's broad Republican support for it, and he doesn't put it on the floor. He's afraid of Trump."
Schumer also blamed Trump more broadly for the ongoing shutdown. "Right now, we're facing down two crises at once, a healthcare crisis and a hunger crisis," the New York Democrat said, "and both are caused by and intensified by one man and one man only: Donald Trump. We're now three days away from open enrollment, and for the first time in history a president is refusing to fund SNAP during a shutdown."
Schumer and Democrats argue that contingency funds can and should be used to cover SNAP benefits for the coming month. They note that the Department of Agriculture had said in guidance on its website that it has billions in funding to help keep food aid flowing - and that Trump himself had assured that SNAP benefits would go out. When asked about the deadline recently, the president promised, "everybody is going to be in good shape."
Right now, it doesn't look that way. The USDA plan has been removed from the website, and Republicans now insist that they can't legally use the contingency funds. Democrats angrily pushed back on those claims, saying that every president has used the same pot of funding to provide SNAP benefits and that Trump could defuse the threat of people going hungry with the stroke of a pen. "Trump is weaponizing hunger," Schumer said. "He's using kids and parents as pawns. Donald Trump is a vindictive politician and a heartless man."
Schumer: "And while he's manufacturing two crises here at home, where's his focus? Overseas, on a ballroom, on sending $40 billion to Argentina. He has money for Argentina but not for SNAP?"
The bottom line: Some 42 million people are set to lose food aid as the shutdown approaches record length. As the pressure on lawmakers grows, some expressed optimism that bipartisan talks among rank-and-file Senators were finally moving in the right direction. Still, the costs of the shutdown keep rising: The Congressional Budget Office estimated Wednesday that the U.S. economy will see GDP growth temporarily slip 1 to 2 percentage points because of the shutdown - and while most of the drop in GDP will be recovered eventually, between $7 billion and $14 billion will be permanently lost, depending on how long the standoff lasts.
Fed Cuts Rates Again, but Next Move Is Uncertain
The Federal Reserve cut its benchmark interest rate by a quarter of a percentage point Wednesday, easing monetary policy for the second time this year. The cut, which was widely expected, reduces the federal funds rate to a range of 3.75% to 4%, and comes even as inflation continues to run near 3%, well above the Fed's 2% target rate.
In addition to the cut, the Fed announced that it would halt the selloff of its $6.6 trillion asset portfolio, effectively freezing the size of the central bank's balance sheet as of December 1.
There were two dissenting votes on the Federal Open Market Committee, whose 12 members determine the benchmark rate. Recent Trump appointee Stephen Miran - a former White House economic adviser who shares the president's preference for low interest rates - voted for a 50-basis-point rate cut, while Kansas City Fed President Jeff Schmid voted to hold rates steady.
In a post-meeting press conference, Fed Chair Jerome Powell told reporters that the outlook for the rest of the year is highly uncertain. During discussions, Fed officials had "strongly different views about how to proceed in December," at the year's last meeting. Asked about market expectations for another rate cut at the end of the year, Powell said, "It's not to be seen as a foregone conclusion. In fact, far from it."
Looking for neutral: Powell explained that the Fed officials are seeking a neutral stance for interest rates, given that the central bank's mandate is pointing in opposite directions, with elevated inflation calling for higher rates and a weakening labor market calling for lower rates. The latest rate cut is intended to boost the labor market, which has seen hiring slow in recent months.
At the same time, Powell said Fed officials haven't seen signs of significant changes in the economy over the last few weeks. Although the government shutdown has caused some economic reports to be delayed or canceled, Powell noted that state-level employment data show no signs of increased distress. Powell also said he was confident that the Fed would pick up signals of any marked deterioration of the economy, even without the full suite of federal data sources being available because of the shutdown.
As for inflation, Powell said that goods that have not been affected by President Trump's tariffs are seeing price increases of roughly 2.3% or 2.4%, close to the Fed's 2% target rate. Inflation on goods affected by tariffs is higher, but Powell said the base case remains that the price increases occurring as importers pass their higher costs onto consumers will be a one-time event, and not the spark of a new inflationary spiral.
"Overall, it's a good picture," Powell said.
What the experts are saying: Investors were alarmed by Powell's suggestion that the Fed may hold rates steady at its next meeting, with the S&P 500 giving up gains to end the day slightly lower and bond yields rising.
Stephen Juneau, senior U.S. economist at BofA Securities told Bloomberg that Powell's comments "came off as more hawkish than we expected."
Other analysts interpreted Powell's remarks as more neutral or even dovish on inflation, simply reflecting the uncertain condition of the economy and the need to see more data before any decisions are made.
RSM Chief Economist Joseph Brusuelas said on social media that another rate cut remains a strong possibility. "We anticipate that the central bank will reduce its policy rate by an additional 25 basis points" at its next meeting in December, he said, adding that he expects the Fed to continue cutting until it reduces its benchmark rate to 3% over the next two years.
Senate Votes to End Trump Tariffs on Canada and Brazil
The Senate voted 50-46 Wednesday evening to end the national emergency declared by President Trump on February 1 to impose his tariffs on Canada. Republican Sens. Susan Collins, Mitch McConnell, Lisa Murkowski and Rand Paul joined all Democrats in voting to repeal the tariffs.
Wednesday's vote followed a similar one to end a national emergency declared by Trump on July 30 as he imposed 50% tariffs on Brazilian imports. Collins, McConnell, Murkowski, Paul and Thom Tillis joined with Democrats in that vote, sending the joint resolution to the House, where it is likely to be ignored. House Republicans last month voted to block consideration of any measure aimed at repealing Trump's tariffs until March 31.
The Senate already moved to repeal Trump's tariffs on Canada back in April in a 51-48 vote that was not taken up by the House.
This week's Senate votes come as the Supreme Court is set to hear arguments next week on whether Trump has exceeded his authority by imposing many of his tariffs.
Number of the Day: 36
Rep.-elect Adelita Grijalva of Arizona won her special election on September 23 and has now waited 36 days to be sworn in to Congress - reportedly longer than any other member in history. House Speaker Mike Johnson has refused to swear her in while the government is shut down, shrugging off pressure from Democrats and past precedent.
Shutdown News
- White House Finds 11th-Hour Shutdown Workaround to Pay Troops - for Now – Axios
- Thune Says He Will Engage 'Pretty Soon' With Democrats About Ending Shutdown – Politico
- Senators Cautiously Optimistic About Bipartisan Talks to End Shutdown – CBS News
- "What's the Point?": Johnson Won't Bring House Back During Shutdown – Axios
- Democrats Wobble as Pressure to End Shutdown Ramps Up – The Hill
- Food Aid for 42 Million Imperiled by Shutdown Politics, as Trump Tests Law – Reuters
- Government Shutdown Has Already Cost US Economy $18 Billion This Year, CBO Says – Bloomberg
- In a Heated Call, Rep. Marjorie Taylor Greene Chastises Republicans Over Their Shutdown Strategy – NBC News
- Greene Says Johnson Refused to Share Health Care Plans on GOP Conference Call – The Hill
- Republicans Are Growing Tired of Marjorie Taylor Greene's Shutdown Attacks – Politico
- Brooke Rollins Invites Soros to Fund SNAP During Shutdown – The Hill
- Airlines Feeding Air Traffic Controllers as They Miss First Paychecks – CBS News
Other News
- Obamacare Prices Become Public, Highlighting Big Increases – New York Times
- Americans Are Getting a Look at Next Year's ACA Premiums and Many Don't Like It – Wall Street Journal
- Trump Pitches Working With Democrats on Obamacare Alternative – The Hill
- Fed Cuts Interest Rates by Another Quarter Point, but Data Blackout Obscures the Path Ahead – Wall Street Journal
- Senate Votes to Block Tariffs on Brazil. It Shows Some Pushback to Trump Trade Policy – Associated Press
- Trump Says 'It's Pretty Clear' He Can't Run for a Third Term – NBC News
- Trump's Approval Hits New Low for Second Term: Poll – The Hill
- House Budget Chair Concedes Dim Prospects for Megabill 2.0 This Year – Politico
- Senate Democrats Demand 'Complete Accounting' of Trump's Ballroom Donors – The Hill
- White House Fires Arts Commission Expected to Review Trump Construction Projects – Washington Post
- Toyota Fact-Checks Trump: $10 Billion Investment Isn't New – The Hill
- With Trump's Favor, Nvidia Becomes First $5 Trillion Company in History – Washington Post
- FDA to Streamline Approvals of Generic Biologic Drugs – The Hill
- A Car Accident Sent Her to the Hospital - and $64,000 Into Debt – Washington Post
Views and Analysis
- The House Was Out in October. Does It Matter? – Justin Papp, Roll Call
- The Shutdown Pressure Cooker – Kimberley A. Strassel, Wall Street Journal
- The GOP's Obamacare Opportunity – Wall Street Journal Editorial Board
- Why We're Forcing Senate Votes on Trump's Tariffs – Sens. Tim Kaine (D-VA) and Rand Paul (R-KY), Washington Post
- This Supreme Court Decision Could Basically Guarantee Higher Inflation – John W. Snow and Christopher Smith, Washington Post
- Trump's Tariff Strategy Meets Its Moment of Truth in Talks With Xi – Megan Messerly, Politico
- Trump Is Illegally Withholding Food From Needy Families – Bryce Covert, American Prospect
- RFK Jr. Admits He Can't Actually Tie Tylenol to Autism – Edith Olmsted, New Republic
- Trump Selling Out Cattle Ranchers Highlights Structural Food Economy Crisis – David Dayen, American Prospect