U.S. bipartisan lawmakers propose $908 billion COVID-19 relief bill

WASHINGTON (Reuters) – A bipartisan group of U.S. senators and members of the House of Representatives on Tuesday proposed a $908 billion COVID-19 relief bill that would fund measures through March 31, including $228 billion in additional paycheck protection program funds for hotels, restaurants and other small businesses.

State and local governments would receive direct aid under the bipartisan bill, the lawmakers said. Senator Mitt Romney, a Republican, said the plan contains $560 billion in “repurposed” funding from the CARES Act enacted in March.

The lawmakers, speaking to reporters, said they have not yet secured backing for their plan from the White House, Senate Majority Leader Mitch McConnell or House of Representatives Speaker Nancy Pelosi.

Their support would be essential for a compromise bill to advance in the House and Senate.

But it does contain provisions that Republicans have been pressing for: new liability protections for businesses and schools grappling with the coronavirus pandemic.

Pelosi and her Democrats would win a central demand: aid to state and local governments.

A compromise $300 per week in additional unemployment benefits would also be in the package, according to the lawmakers.

Pelosi and Treasury Secretary Steven Mnuchin were expected to discuss coronavirus aid and a must-pass government funding bill later on Tuesday.

(Reporting by Richard Cowan and Doina Chiacu; Editing by Franklin Paul and Chris Reese)

U.S. senators unveil bill to curb foreign espionage, influence on campuses

(Reuters) – A bipartisan group of U.S. senators introduced legislation on Thursday aimed at protecting research and innovation on U.S. campuses and preventing suspected theft of intellectual property by China and other countries.

There is a growing push in Washington to clamp down on spying and intellectual property theft that some Chinese nationals are suspected of engaging in at U.S. universities and colleges.

The “Safeguarding American Innovation Act” proposes to strengthen the U.S. State Department’s authority to deny visas to foreign nationals seeking access to certain sensitive technologies related to U.S. national security and economic security interests.

It also proposes penalizing individuals with fines and imprisonment for failing to disclose foreign support on federal grant applications, as well as lowering the threshold for U.S. schools and universities to report foreign gifts.

“This bill will help us stop foreign governments from stealing our research and innovation while also increasing transparency to ensure that taxpayers know when colleges and universities accept significant foreign funding,” Senator Rob Portman, a Republican and lead sponsor, said in a statement.

The bill, co-sponsored by at least nine Republicans and six Democrats, also aims to give the Department of Education authority to punish U.S. schools that fail to properly report gifts received from foreign entities.

In one of the highest-profile cases to emerge from a crackdown on Chinese influence within universities, a Harvard University professor pleaded not guilty on Tuesday to charges that he lied to authorities about his ties to a China-run recruitment program and funding he received from the Chinese government for research.

Reuters, citing sources, reported last month that the United States is planning to cancel the visas of thousands of Chinese graduate students believed by the Trump administration to have links with China’s military.

(Reporting by Ismail Shakil in Bengaluru; additional reporting by Patricia Zengerle in Washington; Editing by Mark Heinrich and Paul Simao)

Historic $2.2 trillion coronavirus bill passes U.S. House, Trump signs into law

U.S. President Donald Trump signs an executive order on immigration policy in the Oval Office of the White House in Washington, U.S., June 20, 2018. REUTERS/Leah Millis

By David Morgan and Susan Cornwell

WASHINGTON (Reuters) – The U.S. House of Representatives on Friday approved a $2.2 trillion aid package – the largest in history – to help cope with the economic downturn inflicted by the intensifying coronavirus pandemic, and President Donald Trump quickly signed it into law.

The massive bill passed the Senate and House of Representatives nearly unanimously. The rare bipartisan action underscored how seriously Republican and Democratic lawmakers are taking the global pandemic that has killed more than 1,500 Americans and shaken the nation’s medical system.

“Our nation faces an economic and health emergency of historic proportions due to the coronavirus pandemic, the worst pandemic in over 100 years,” House Speaker Nancy Pelosi said at the close of a three-hour debate before the lower chamber approved the bill. “Whatever we do next, right now we’re going to pass this legislation.”

The massive bill also rushes billions of dollars to medical providers on the front lines of the outbreak.

But the bipartisan spirit seemed to end at the White House. Neither Pelosi nor Senate Democratic Leader Chuck Schumer was invited to Trump’s all-Republican signing ceremony for the bill, aides said.

Their Republican counterparts, House Minority Leader Kevin McCarthy and Senate Majority Leader Mitch McConnell, did attend, along with three Republican House members.

“This will deliver urgently needed relief to our nation’s families, workers and businesses,” Trump said. “I really think in a fairly short period of time … we’ll be stronger than ever.”

In an statement about signing the bill, Trump rejected aspects of a provision in the law setting up an inspector general to audit some loans and investments.

Asked about the statement, Pelosi told MSNBC: “Congress will exercise its oversight and we will have our panel … appointed by the House, in real time to make sure we know where those funds are being expended.”

She called Trump a “dangerous president” who had chosen to ignore the threat of the coronavirus.

“Our next thrust will be about recovery and how we can create good-paying jobs so that we can take the country into the future in a very strong way,” Pelosi said.

The Democratic-led House approved the package on a voice vote, turning back a procedural challenge from Republican Representative Thomas Massie, who had sought to force a formal, recorded vote.

To keep Massie’s gambit from delaying the bill’s passage, hundreds of lawmakers from both parties returned to Washington despite the risk of contracting coronavirus. For many, that meant long drives or overnight flights.

One member who spent hours in a car was Republican Representative Greg Pence, the brother of Vice President Mike Pence, whom Trump has put in charge of efforts to handle the coronavirus crisis.

Pence drove the nearly 600 miles (966 km) from his home state, Indiana, to Washington on Thursday. “We can’t afford to wait another minute,” he said on Twitter.

‘THIRD-RATE GRANDSTANDER’

Massie wrote on Twitter that he thought the bill contained too much extraneous spending and gave too much power to the Federal Reserve, the U.S. central bank. His fellow lawmakers overruled his request for a recorded vote.

Trump attacked Massie on Twitter, calling him a “third rate Grandstander” and saying he should be thrown out of the Republican party. “He just wants the publicity,” wrote the president, who last week began pushing for urgent action on coronavirus after long downplaying the risk.

Democratic and Republican leaders had asked members to return to Washington to ensure there would be enough present to head off Massie’s gambit. The session was held under special rules to limit the spread of the disease among members.

At least five members of Congress have tested positive for the coronavirus and more than two dozen have self-quarantined to limit its spread.

The Senate, which approved the bill in a unanimous vote late on Wednesday, has adjourned and is not scheduled to return to Washington until April 20.

Democratic and Republican House leaders appeared together at a news conference at the Capitol to celebrate the bill’s passage – an unusual event for a chamber that is normally sharply divided along partisan lines.

“The virus is here. We did not ask for it, we did not invite it. We did not choose it. But with the passing of the bill you will see that we will fight it together, and we will win together,” McCarthy said.

He did not say whether Massie would face any disciplinary measures from the party.

The rescue package is the largest fiscal relief measure ever passed by Congress.

The $2.2 trillion measure includes $500 billion to help hard-hit industries and $290 billion for payments of up to $3,000 to millions of families.

It will also provide $350 billion for small-business loans, $250 billion for expanded unemployment aid and at least $100 billion for hospitals and related health systems.

The number of coronavirus cases in the United States exceeded 100,000 on Friday, according to a Reuters tally, the most of any country.

Adding to the misery, the Labor Department reported the number of Americans filing claims for unemployment benefits surged to 3.28 million, the highest level ever.

(Reporting by David Morgan, Lisa Lambert, Doina Chiacu, Richard Cowan, Susan Cornwell, Andy Sullivan and Patricia Zengerle; Writing by Andy Sullivan and Patricia Zengerle; Editing by Jonathan Oatis, Daniel Wallis and Stephen Coates)

U.S. Congress approves massive funding bills to avert government shutdowns

By Richard Cowan

WASHINGTON (Reuters) – The U.S. Senate, rushing to meet a looming deadline, approved and sent to President Donald Trump a $1.4 trillion package of fiscal 2020 spending bills that would end prospects of government shutdowns at week’s end when temporary funding expires.

By strong bipartisan margins and with White House backing, the Senate passed the two gigantic funding bills for government programs through Sept. 30.

Trump is expected to sign both bills into law before a midnight Friday deadline.

Notably, the Pentagon would get $738 billion for military activities – $22 billion more than last year.

Investments in domestic programs range from child nutrition and college grants to research on gun violence for the first time in decades and money for affordable housing programs that Trump had opposed.

The legislation also contains a series of new initiatives, including funding for Trump’s military Space Force, raising the age for purchasing tobacco products to 21 from the current 18, and repealing some taxes that were intended to fund the Affordable Care Act health insurance, popularly known as Obamacare.

About a year ago, the U.S. government plunged into a record-long, 35-day partial shutdown after Congress refused to give Trump the money he wanted to build a U.S.-Mexico border wall – one that he previously had insisted Mexico would finance.

This time around, money for border security would stay level at $1.37 billion, far below what Trump had sought.

Earlier this year, angered by Congress’ refusal to give him the wall money, Trump declared an “emergency” and took funds from other accounts appropriated by Congress and used them to build part of the border wall that was a central promise of his 2016 presidential campaign.

Congressional and White House negotiators reached a deal on the spending bills to avert government shutdowns just days before Washington plunged into a different kind of political crisis: the Democratic-controlled House of Representatives approving articles of impeachment against Trump, a Republican.

With Democrats and Republicans trying to demonstrate that they can get at least some legislative work done amid Trump’s impeachment, the administration and Democrats also worked out differences over a U.S.-Mexico-Canada free trade agreement, making for a flurry of pre-Christmas break action in Washington.

The $1.4 trillion in spending for so-called “discretionary” programs, up from $1.36 trillion last year, is separate from “mandatory” programs like Social Security retirement benefits, which are automatically funded.

The higher spending, coupled with tax cuts enacted in 2017, are contributing to widening budget deficits. The government spent $984 billion more than it took in during the last fiscal year that ended on Sept. 30, and the non-partisan Congressional Budget Office projects annual budget deficits averaging $1.2 trillion over the next decade.

A rapidly-rising U.S. national debt now stands at $23.1 trillion, a level that some experts fear could eventually hobble the economy.

(Reporting by Richard Cowan; Editing by Chizu Nomiyama, Steve Orlofsky and Dan Grebler)

Senators push for U.S. to expand mining for electric vehicle supply chain

WASHINGTON (Reuters) – U.S. senators voiced bipartisan support on Tuesday for the expansion of domestic mining and minerals recycling, part of a push to jumpstart the country’s electric vehicle supply chain and offset China’s rising dominance in the fast-growing space.

“China is consolidating control of the entire supply chain for clean technologies,” Senator Lisa Murkowski, the Republican chair of the Senate’s Energy and Natural Resources Committee, said at a hearing. “The United States is falling behind … and allowing that to happen is a strategic mistake.”

(Reporting by Ernest Scheyder)

Israeli minister condemns Sanders’ remarks on ‘racist’ Netanyahu government

FILE PHOTO: U.S. 2020 Democratic presidential candidate and Senator Bernie Sanders participates in a moderated discussion at the We the People Summit in Washington, U.S., April 1, 2019. REUTERS/Carlos Barria/File Photo

JERUSALEM (Reuters) – An Israeli cabinet minister condemned U.S. Democratic Party presidential hopeful Bernie Sanders on Tuesday for describing Prime Minister Benjamin Netanyahu’s government as racist over its treatment of Palestinians.

While enjoying unprecedentedly strong backing from the Republican administration of President Donald Trump, some Israelis have been fretting about whether this comes at the cost of losing traditionally bipartisan support in Washington.

Addressing a televised CNN event alongside other Democratic candidates on Monday, Vermont senator Sanders said he was “100 percent pro-Israel” but proposed changing U.S. policy toward it.

“The goal must be to try to bring people together and not just support one country, which is now run by a right-wing, dare I say, racist government,” Sanders said, adding that Netanyahu “is treating the Palestinian people extremely unfairly”.

Netanyahu was reelected to a fifth term on April 9 and appears likely to build a coalition government including religious ultranationalists opposed to Palestinian statehood.

“We condemn statements like that made by Sanders, which was really strange,” Tzachi Hanegbi, a minister in Netanyahu’s outgoing cabinet and senior member of his conservative Likud party, told Israel’s Reshet 13 TV.

“The Israeli government is not a racist government, nor does it include a single racist minister,” the regional cooperation minister said.

“To be right wing is not illegitimate and it is odd that the Democratic Party allows one of its senior members to not respect the democratic choice of the State of Israel.”

Hanegbi cast his own remarks as specific to Sanders rather than any more generalized criticism of the Democratic Party.

Asked whether Israel risked being seen in the United States as a country championed by Republicans, he said: “We make every effort to avoid this danger because, indeed one of Israel’s greatest advantages over all the years was the ability not to get caught up in the political dispute between the parties.”

U.S. Jews overwhelmingly vote Democratic, studies show, a trend that political analysts say has also contributed to a degree of grassroots disconnect between the allies since Trump’s rise. Sanders is himself Jewish and, in his CNN appearance, noted his past visits to, and relatives living in, Israel.

(Writing by Dan Williams; Editing by Alison Williams)

Trump leaves options open on deal to prevent government shutdown

U.S. President Donald Trump listens next to Commerce Secretary Wilbur Ross during a Cabinet meeting at the White House in Washington, U.S., February 12, 2019. REUTERS/Carlos Barria

By Richard Cowan and Steve Holland

WASHINGTON (Reuters) – U.S. President Donald Trump left his options open on Wednesday over whether to sign a funding deal that would avert another partial government shutdown but leave him short of the money he wants to build a wall on the border with Mexico.

The Republican president said earlier this week he is not happy with a compromise thrashed out in Congress and has not ruled out a possible veto of the legislation.

But a source familiar with the situation said on Wednesday that Trump would likely back the bipartisan deal, even if it only gives him $1.37 billion for border fencing rather than the $5.7 billion he is seeking to help build the wall.

White House spokeswoman Sarah Sanders said the administration was waiting until it is clear exactly what lawmakers are proposing.

“We want to see what the final piece of legislation looks like,” White House spokeswoman Sarah Sanders told reporters. “It’s hard to say definitively whether or not the president is going to sign it until we know everything that’s in it.”

Another White House spokeswoman, Mercedes Schlapp, told CNN that lawyers were reviewing the administration’s options should Congress not provide Trump’s demanded money for the wall, a signature campaign promise in his 2016 election win.

With a Friday night deadline looming before government agencies begin closing for lack of funding, senior congressional Republicans have urged Trump to back the deal.

They have little appetite for a repeat of the 35-day partial shutdown in December and January – the longest in U.S. history -which closed about a quarter of the federal agencies and left some 800,000 federal workers without pay.

But Trump has come in for criticism from the right for wavering on support for the border wall, which the administration says will cut illegal immigration and drug smuggling.

“Trump talks a good game on the border wall, but it’s increasingly clear he’s afraid to fight for it,” right-wing commentator Ann Coulter tweeted on Tuesday. Trump abandoned a planned compromise on funding for the wall in December after similar criticism.

OTHER OPTIONS

The Washington Post, citing a White House official, said Trump was likely to explore using his executive power to reallocate other federal funds for barrier projects along the southern border. CNN, citing the White House, also said Trump was weighing the use of an executive order, among other options.

The president previously threatened to declare a “national emergency” if Congress did not provide money specifically for the wall — a move that would almost certainly draw opposition in Congress and in the courts.

The Democrat-controlled U.S. House of Representatives could vote as soon as Wednesday evening, a senior aide said, despite not yet having produced a written copy of the agreement reached by congressional negotiators on Monday night.

The accord must also be passed by the Republican-controlled Senate and signed by Trump by midnight on Friday to prevent a shutdown.

The measure’s fate in the House was far from certain given the risk that conservatives and liberals will oppose the compromise for different reasons.

Congressional sources said the deal includes $1.37 billion for new border fencing, about the same as last year – along 55 miles (90 km) of the border – but not the $5.7 billion Trump has demanded for the wall.

Democrats say Trump’s planned wall would be expensive, ineffective and immoral.

(Reporting by Richard Cowan and Susan Cornwell; Additional reporting by Amanda Becker, Susan Heavey and Lisa Lambert; Writing by Alistair Bell; Editing by Jeffrey Benkoe and Jonathan Oatis)

Trump to lawmakers: Don’t waste your time, deal needs wall

U.S. President Donald Trump announces a deal to end the partial government shutdown as he speaks in the Rose Garden of the White House in Washington, U.S., January 25, 2019. REUTERS/Kevin Lamarque

By Richard Cowan

WASHINGTON (Reuters) – With little time to craft a deal over funding security operations on the U.S.-Mexico border, a bipartisan group of lawmakers was to meet in a public work-session on Wednesday even as President Donald Trump maintained a hard line on constructing a massive wall.

Congressional negotiators are up against a Feb. 15 deadline for agreeing on funding through Sept. 30 for several federal agencies, including the Department of Homeland Security and its border operations.

Realistically, Republican and Democratic lawmakers have about a week to settle differences and still give the full House of Representatives and Senate time to debate and vote on any deal.

A 35-day partial shutdown of agencies was triggered on Dec. 22 when Trump refused to sign funding bills that did not contain $5.7 billion for a wall along the southwestern U.S. border.

Faced with steadfast opposition in the Democratic-majority House, Trump relented on Friday, agreeing to re-open federal agencies temporarily without his $5.7 billion request. In return, Congress agreed to a special panel to negotiate a border security deal.

Trump has threatened a resumption of the record-long shutdown if the panel fails to find common ground or produces a plan he does not like.

In a tweet on Wednesday, Trump warned: “If the committee of Republicans and Democrats now meeting on Border Security is not discussing or contemplating a Wall or Physical Barrier, they are Wasting their time!”

Physical barriers have long been installed on parts of the border to keep out illegal drugs and undocumented immigrants and more are underway.

It was unclear whether Trump, who views the current arrangement as insufficient, would accept a simple continuation of such installations. Building a wall on the U.S. southern border – with Mexico paying for it – was one of Trump’s most often repeated promises during the 2016 presidential campaign. Mexico has refused to pay for a wall.

Democrats, arguing a border wall is ineffective, say they want a mix of security tools: drones, sensors, scanning devices and fences, along with more border patrol agents.

Wednesday’s committee meeting might be the only public session since behind-the-scenes negotiations are the stage for the real bargaining.

The session is expected to mainly allow the seven Senate negotiators and 10 House negotiators an opportunity to make opening statements. The committee is headed by House Appropriations Committee Chairwoman Nita Lowey, a Democrat, and Republican Richard Shelby, chairman of the Senate Appropriations Committee.

With a mix of wall supporters and opponents, it is unclear whether the panel will reach agreement.

Republican Representative Kay Granger was optimistic, telling reporters she and Lowey “have worked together well” over the years.

If Congress denies his request, Trump has threatened to declare a “national emergency” in order to take existing funds appropriated by Congress for other purposes – possibly from the Defense Department, for example – to build his wall.

There is bipartisan opposition in Congress to that plan, which likely would spark legal challenges since the U.S. Constitution gives Congress the power to appropriate funds and direct their use.

(Reporting by Richard Cowan and Susan Cornwell; Editing by Chizu Nomiyama and Bill Trott)

Congress expected to vote on budget to avert government shutdown

People walk by the U.S. Capitol building in Washington, U.S., February 8, 2018.

By Richard Cowan

WASHINGTON (Reuters) – The U.S. Senate and House of Representatives were expected to vote on a proposed budget deal on Thursday that would avert another government shutdown but that has angered fiscal conservatives who complain it would lead to a $1 trillion deficit.

The plan to keep the government operating and to increase spending over the next two years faced resistance from conservatives in the Republican Party, who favor less spending on domestic government programs. At the same time, many liberal Democrats wanted to withhold their support as leverage to win concessions on immigration policy.

That meant the bill’s passage was not assured in the House and would need some Democratic support. House Speaker Paul Ryan, a Republican who has backed the agreement, said on Thursday he believed the chamber will pass the budget deal.

“I think we will,” Ryan told radio host Hugh Hewitt. “This is a bipartisan bill. It’s going to need bipartisan support. We are going to deliver our share of support.”

Mark Meadows, chairman of the conservative House Freedom Caucus, called the deal “eye-popping and eyebrow-raising.”

“We took an official position last night to say we can’t support this,” he told CNN on Thursday.

Republicans control both chambers of Congress.

The rare bipartisan deal reached by Senate leaders on Wednesday raises spending on military and domestic programs by almost $300 billion over the next two years.

It would allow for $165 billion in extra defense spending and $131 billion more for non-military programs, including health, infrastructure, disaster relief and efforts to tackle an opioid crisis in the country.

It would stave off a government shutdown before a Thursday night deadline and extend the federal government’s debt ceiling until March 2019, putting off for more than a year the risk of a debt default by the United States.

CONSERVATIVE OPPOSITION

The agreement, backed by Republican President Donald Trump, disappointed conservative House Republicans and outside groups.

“It’s not like Republicans aren’t concerned about disaster relief, or Republicans aren’t concerned about funding community health centers or dealing with the opioid crisis,” U.S. Representative Warren Davidson, a Republican, said in an interview with National Public Radio.

“But when you add them all up, it adds to an awful lot of spending. … It’s not compassionate to bankrupt America.”

Liberal Democrats meanwhile opposed the deal because it does not include an agreement to protect from deportation hundreds of thousands of “Dreamers,” young people brought illegally to the United States as children.

House Democratic leader Nancy Pelosi on Wednesday staged an eight-hour speech on the House floor in support of immigration legislation, including reading letters from Dreamers pleading to be allowed to stay in the United States.

A number of lawmakers who supported the bill acknowledged the deal was not perfect. “It’s not pretty,” Republican U.S. Representative Adam Kinzinger said on CNN.

Democratic Senator Jon Tester said he hoped House Democrats would back the measure. “We don’t want the perfect to get in the road of the good,” he told the cable network.

Republican Senator Lindsey Graham said many lawmakers believe the defense spending in the bill was essential. “We’re going to get it through because most people will support it,” he told Fox News.

Senate Republicans planned a procedural vote on a stand-alone bill to increase military funding for the rest of the year to demonstrate support for Trump’s promised defense build-up.

Democrats will not support it because it does not contain similar spending increases for non-military programs. But the Senate’s failure to advance the bill will not damage the budget legislation, which is due for a vote later in the day.

White House adviser Kellyanne Conway told Fox News the agreement provides long-term certainty in the budget and funding for Trump priorities including infrastructure and military funding.

Failure to agree on spending led to a partial three-day shutdown of government agencies last month.

(Reporting by Makini Brice, Katanga Johnson, Doina Chiacu; Editing by Frances Kerry and Alistair Bell)

White House sees good chance of long-term budget deal

Senate Minority Leader Chuck Schumer (D-NY) speaks during a news conference on Capitol Hill in Washington, U.S., February 6, 2018.

By Richard Cowan

WASHINGTON (Reuters) – U.S. lawmakers are expected to unveil “a good, bipartisan deal” on Wednesday that would raise current limits on federal spending for two years, the White House said, as Congress seeks to end fights over spending that have plagued Washington for months.

Higher defense spending expected in the agreement would allow President Donald Trump to make good on his campaign promise for a U.S. military build-up, although the White House is still concerned about non-defense spending levels, White House legislative affairs director Marc Short told MSNBC.

But Nancy Pelosi, the House of Representatives’ Democratic leader, said she would not support such a deal, aimed at lifting some limits on government spending for two years, unless Republican Speaker Paul Ryan promised to advance legislation on immigration. Trump’s fellow Republicans control both chambers of Congress.

Over the past several months, congressional leaders have been negotiating a deal that would raise spending caps for the current fiscal year, which ends on Sept. 30, and the next one for both defense and non-defense programs.

A broad budget deal could ease the brinkmanship over spending that roils Washington so regularly that financial markets barely flinch anymore at the threat of a government shutdown.

“There’s some things that you give and take in a negotiation like this, and so I think this will be a good, bipartisan deal but we’re more excited about the defense spending,” Short said.

Aside from the planned longer-term deal, lawmakers were also trying to reach agreement by Thursday to avoid a shutdown and fund the government until March 23.

“We expect the government is not going to shut down this week,” Short said.

In a further sign of Congress’ inability to get basic work done, the House on Tuesday had to approve another stopgap bill to keep the federal government from shutting down.

Stopgap measures are needed when Congress fails to approve spending on time for a full fiscal year, something it has done only four of the past 40 years, according to congressional researchers.

The Senate was expected to take up the House stopgap legislation as Congress raced to get a finished bill for Trump to sign into law before government funding runs out on Thursday.

If that fails, the U.S. government would experience its second shutdown this year, after a partisan standoff over U.S. immigration policy led to a three-day partial shutdown last month.

Immigration again emerged as a possible point of contention in budget talks when Democrat Pelosi said she would oppose a two-year deal unless the Republican Ryan promised to advance legislation to protect hundreds of thousands of young adult immigrants, known as “Dreamers,” brought to the United States illegally as children.

Republicans are eager to keep spending and immigration separate. But Trump threatened on Tuesday to upend budget talks by saying he would welcome a government shutdown if Congress were not able to agree to changes in immigration law that he said would prevent criminals from entering the country.

January’s shutdown came after Democrats sought to have a spending bill include protections for the Dreamers that Trump has rescinded effective in March.

On Tuesday, top Senate Democrat Chuck Schumer said the emerging Senate two-year deal would increase funding for domestic programs like drug treatment and broadband infrastructure that Democrats want, as well as a military spending increase sought by Republicans.

“We’re making progress,” Senator Dick Durbin, the Democratic minority whip, told MSNBC on Wednesday.

Congress must also raise the federal debt ceiling or face defaulting on the government’s bills, and several Republican lawmakers said the matter would be part of Senate budget talks. The U.S. Treasury is expected to run out of borrowing options by late March.

(Additional reporting by Susan Heavey; Editing by Will Dunham)