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Exclusive: ‘If there’s a shutdown, there’s a shutdown,’ Trump says

President Donald Trump downplayed the severity of a potential government shutdown on Thursday, just two days shy of a deadline for Congress to reach a spending deal to avert temporary layoffs of federal workers.
“We’ll see what happens. If there’s a shutdown, there’s a shutdown,” Trump told Reuters in an interview, adding that Democrats would be to blame if the federal government was left unfunded.
Congress has until 12:01 a.m. ET on Saturday to pass a bill to fund the government or face a shutdown, which would temporarily lay off hundreds of thousands of federal workers.
Republicans introduced a bill on Wednesday to fund government operations at current levels for one more week, giving them time to finish negotiations with Democrats on the plan for the rest of the fiscal year ending Sept. 30.
Trump said a shutdown would be a “very negative thing” but that his administration was prepared if it was necessary.
In a wide-ranging interview, he defended the one-page tax plan he unveiled on Wednesday from criticism that it would increase the U.S. deficit, saying better trade deals and economic growth would offset the costs.
“We will do trade deals that are going to make up for a tremendous amount of the deficit. We are going to be doing trade deals that are going to be much better trade deals,” Trump said.
Trump also said it would be unfair to offer a debt bailout to Puerto Rico, a U.S. territory, because it was unfair to people in U.S. states.
As part of the budget negotiations, Democrats have called for financial support to prop up Puerto Rico’s Medicaid program covering health insurance for the poor, but many Republicans are opposed to the idea.
“I don’t think that’s fair to the people of Iowa, and I don’t think it’s fair to the people of Wisconsin and Ohio and North Carolina and Pennsylvania that we should be bailing out Puerto Rico for billions and billions of dollars,” Trump said. ” No I don’t think that’s fair.”

Exclusive: Trump says ‘major, major’ conflict with North Korea possible, but seeks diplomacy

WASHINGTON (Reuters) – U.S. President Donald Trump said on Thursday a major conflict with North Korea is possible in the standoff over its nuclear and missile programs, but he would prefer a diplomatic outcome to the dispute.
“There is a chance that we could end up having a major, major conflict with North Korea. Absolutely,” Trump told Reuters in an Oval Office interview ahead of his 100th day in office on Saturday.
Nonetheless, Trump said he wanted to peacefully resolve a crisis that has bedeviled multiple U.S. presidents, a path that he and his administration are emphasizing by preparing a variety of new economic sanctions while not taking the military option off the table.
“We’d love to solve things diplomatically but it’s very difficult,” he said.
In other highlights of the 42-minute interview, Trump was cool to speaking again with Taiwan’s president after an earlier telephone call with her angered China.
He also said he wants South Korea to pay the cost of the U.S. THAAD anti-missile defense system, which he estimated at $1 billion, and intends to renegotiate or terminate a U.S. free trade pact with South Korea because of a deep trade deficit with Seoul.
Asked when he would announce his intention to renegotiate the pact, Trump said: “Very soon. I’m announcing it now.”
Trump also said he was considering adding stops to Israel and Saudi Arabia to a Europe trip next month, emphasizing that he wanted to see an Israeli-Palestinian peace. He complained that Saudi Arabia was not paying its fair share for U.S. defense.
Asked about the fight against Islamic State, Trump said the militant group had to be defeated.
“I have to say, there is an end. And it has to be humiliation,” he said, when asked about what the endgame was for defeating Islamist violent extremism.
XI ‘TRYING VERY HARD’
Trump said North Korea was his biggest global challenge. He lavished praise on Chinese President Xi Jinping for Chinese assistance in trying to rein in Pyongyang. The two leaders met in Florida earlier this month.
“I believe he is trying very hard. He certainly doesn’t want to see turmoil and death. He doesn’t want to see it. He is a good man. He is a very good man and I got to know him very well.
“With that being said, he loves China and he loves the people of China. I know he would like to be able to do something, perhaps it’s possible that he can’t,” Trump said.
Trump spoke just a day after he and his top national security advisers briefed U.S. lawmakers on the North Korean threat and one day before Secretary of State Rex Tillerson will press the United Nations Security Council on sanctions to further isolate Pyongyang over its nuclear and missile programs.
The Trump administration on Wednesday declared North Korea “an urgent national security threat and top foreign policy priority.” It said it was focusing on economic and diplomatic pressure, including Chinese cooperation in containing its defiant neighbor and ally, and remained open to negotiations.
U.S. officials said military strikes remained an option but played down the prospect, though the administration has sent an aircraft carrier and a nuclear-powered submarine to the region in a show of force.
Any direct U.S. military action would run the risk of massive North Korean retaliation and huge casualties in Japan and South Korea and among U.S. forces in both countries.
‘I HOPE HE’S RATIONAL’
Trump, asked if he considered North Korean leader Kim Jong Un to be rational, said he was operating from the assumption that he is rational. He noted that Kim had taken over his country at an early age.
“He’s 27 years old. His father dies, took over a regime. So say what you want but that is not easy, especially at that age.
“I’m not giving him credit or not giving him credit, I’m just saying that’s a very hard thing to do. As to whether or not he’s rational, I have no opinion on it. I hope he’s rational,” he said.
Trump, sipping a Coke delivered by an aide after the president ordered it by pressing a button on his desk, rebuffed an overture from Taiwan President Tsai Ing-wen, who told Reuters a direct phone call with Trump could take place again after their first conversation in early December angered Beijing.
China considers neighboring Taiwan to be a renegade province.
“My problem is that I have established a very good personal relationship with President Xi,” said Trump. “I really feel that he is doing everything in his power to help us with a big situation. So I wouldn’t want to be causing difficulty right now for him.
“So I would certainly want to speak to him first.”
Trump also said he hoped to avoid a potential government shutdown amid a dispute between congressional Republicans and Democrats over a spending deal with a Saturday deadline looming.
But he said if a shutdown takes place, it will be the Democrats’ fault for trying to add money to the legislation to “bail out Puerto Rico” and other items.
He also defended the one-page tax plan he unveiled on Wednesday from criticism that it would increase the U.S. deficit, saying better trade deals and economic growth would offset the costs.
“We will do trade deals that are going to make up for a tremendous amount of the deficit. We are going to be doing trade deals that are going to be much better trade deals,” Trump said.
(Editing by Ross Colvin)

No vote on healthcare bill this week in U.S. House

WASHINGTON (Reuters) – U.S. House leaders have decided against holding a vote on a reworked healthcare system overhaul this week after failing to find the necessary support, congressional aides said on Thursday.
White House officials had urged a floor vote on the legislation before President Donald Trump’s 100th day in office on Saturday, hoping to follow through on a campaign promise to repeal and replace the 2010 Affordable Care Act, also known as Obamacare.
Advocates had hoped to raise enough support for the measure after a group of hard-line Republican conservatives endorsed an amended version on Wednesday.
But by Thursday evening Republican leaders still had not collected enough votes from moderate Republicans whose backing was also needed for passage in the House, given united Democratic opposition.
“We won’t vote this week,” said one House Republican aide, who asked not to be named. Next week was not ruled out, another indicated. “We’ll call a vote when we have the votes.”
Representative Pete Sessions, a senior House Republican, also left the door open to a vote next week.
Possibly referring to Trump, Sessions said that a lot of people had tried to rush the legislation to the floor, but House Republican leaders want to “allow the time to do it right.
“I said it will find its time and I am satisfied we are moving at a pace, keeping people engaged,” he said at a late night session of the House Rules Committee he chairs.
The Republican healthcare bill would replace Obamacare’s income-based tax credit with an age-based credit, roll back an expansion of the Medicaid government health insurance program for the poor and repeal most Obamacare taxes.
The nonpartisan Congressional Budget Office had estimated 24 million fewer people would have insurance than under the original version.
House leaders brought the bill to the floor last month after Trump demanded a vote, but yanked it after a rebellion by Republican moderates and the party’s most conservative lawmakers, in a major setback for Trump.
An amendment drafted by Representative Tom MacArthur won over conservatives in the hardline Freedom Caucus this week, reviving some hopes that the bill could still pass.
The amendment would allow states to seek waivers from some provisions. Among these are one mandating that insurers charge those with pre-existing conditions the same as healthy consumers, and that insurers cover so-called essential health benefits, such as maternity care.
But a number of centrist Republicans still opposed the measure.
“Protections for those with pre-existing conditions without contingency, and affordable access to coverage for every American, remain my priorities for advancing healthcare reform, and this bill does not satisfy those benchmarks for me,” Representative Ryan Costello of Pennsylvania said in a statement posted on social network Twitter on Thursday.
Some outside groups like the American Medical Association weighed in against the legislation, saying it would cost millions their health care coverage. The bill’s future is further clouded in the Senate.

Congress readies votes Friday on bill to avert government shutdown

WASHINGTON (Reuters) – The U.S. Congress is set to debate legislation that would extend until May 5 the deadline for a deal on federal spending through September and head off a feared government shutdown at midnight on Friday.
The House Rules Committee, in a late-night meeting, voted 8-2 to send the legislation to the full House of Representatives for debate and votes on passage on Friday, just hours before expiry of a deadline for funding many federal agencies.
If the measure passes the House, as expected, the Senate would be prepared to promptly take up the bill, in the hope of also passing it and sending it to President Donald Trump to be signed into law.
The measure would give Republican and Democratic lawmakers an additional week to work out differences on about $1 trillion in funding for the government through Sept. 30, the end of the current fiscal year.
Without the extension or a longer-term funding bill, federal agencies will run out of money by midnight Friday, likely triggering abrupt layoffs of hundreds of thousands of federal government workers until funding resumes.
The last government shutdown, in 2013, lasted for 17 days, and many lawmakers were nervous about the prospect of another.
“I’m confident we will be able to pass a short-term extension” of funding for programs for the fiscal year that began nearly seven months ago, House Speaker Paul Ryan told reporters early on Thursday.
House Democratic leader Nancy Pelosi warned that the purpose of the stopgap measure was to tie up loose ends of a deal to provide around $1 trillion in money for the fiscal year ending Sept. 30 and not for “kicking the can down the road to have this same back-and-forth” over funding disputes.
House Appropriations Committee Chairman Rodney Frelinghuysen expressed optimism in a statement that a final funding package will be completed soon.
In the midst of the delicate negotiations, Trump took to social network Twitter to blast Democrats.
“As families prepare for summer vacations in our National Parks – Democrats threaten to close them and shut down the government. Terrible!” Trump tweeted in a series of tweets.
Negotiators were racing against the clock to resolve remaining disputes in the massive spending bill amid talks that have already handed Democrats at least two major victories, despite Republican control of Congress.
Trump, a Republican, gave in to Democratic demands that the spending bill not include money to start building the wall he wants to erect on the U.S.-Mexico border. His administration also agreed to continue funding for a major component of Obamacare, formally known as the Affordable Care Act, despite vows to end the program.
It remained unclear whether Republicans would prevail in their effort to sharply hike defense spending without similar increases for other domestic programs. Trump has proposed a $30-billion spending boost for the Pentagon for the rest of this fiscal year.
Such funding disputes could resurface later in spending bills for the next fiscal year.
Disagreements remaining to be ironed out include funding to make a healthcare program for coal miners permanent and to plug a gap in Puerto Rico’s Medicaid program, the government health insurance program for the poor.