Happy Friday and welcome back to On The Money. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.
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THE BIG DEAL–Trump issues first veto, warning of ‘reckless’ resolution: President Trump on Friday issued the first veto of his presidency, stymying Congress’s attempt to prevent his circumvention of the legislative body to attain funds for his wall at the U.S.-Mexico border.
Trump vetoed a resolution of disapproval of his emergency declaration that passed the House and the Senate. The measure won support from both parties, including 12 Senate Republicans, in what was seen as a significant rebuke of the president.
{mosads}In an Oval Office ceremony, Trump said Americans would be put at risk if the “dangerous” and “reckless” resolution became law.
“Today I am vetoing this resolution. Congress has the freedom to pass this resolution, and I have the duty to veto it,” Trump said. The Hill’s Jordan Fabian takes us inside the Oval Office.
What comes next: The resolution of disapproval will now return to the Democrat-controlled House, which is expected to hold a vote later this month on overriding Trump’s veto. But leaders lack the two-thirds support of the chamber necessary to pass the bill over the president’s objections.
The Hill’s Cristina Marcos and Mike Lillis have more on the next steps for Democrats.
LEADING THE DAY
US announces new Russia sanctions with Canada, EU: The U.S., Canada and European Union on Friday imposed financial sanctions on more than a dozen officials and entities accused of supporting Russia’s occupation of southeastern Ukraine.
The Treasury Department announced Friday that it had blocked six Russian individuals and eight companies that allegedly coordinated and provided material support for the Kremlin’s annexation of the Crimean Peninsula.
The U.S. sanctions are matched by similar penalties imposed by Canada and the EU, according to the Treasury Department.
“The United States and our transatlantic partners will not allow Russia’s continued aggression against Ukraine to go unchecked,” said Treasury Secretary Steven Mnuchin in a statement.
- Treasury’s Office of Foreign Assets Control (OFAC) sanctioned four Russian officials involved in the country’s November 2018 attack on three Ukrainian vessels in the Kerch Strait, which separates the Crimean Peninsula from Russia.
- OFAC also penalized six Russian defense firms, a construction company and an oil and gas company under sanctions targeting companies that work with the Kremlin’s military or support its operations in Crimea.
I’ve got more on the new penalties here.
Hispanic Caucus demands probe into Trump undocumented workers: Top members of the Congressional Hispanic Caucus are calling on the Department of Homeland Security (DHS) inspector general and the FBI to investigate the Trump Organization’s hiring of workers without legal immigration status and allegations of mistreatment.
A letter spearheaded by Caucus Chairman Joaquin Castro (D-Texas) and signed by Reps. Ruben Gallego (D-Ariz.), Nanette Diaz Barragán (D-Calif.), Adriano Espaillat (D-N.Y.), and Veronica Escobar (D-Texas) was sent to DHS acting Inspector General John V. Kelly and FBI Director Christopher Wray making the request.
The lawmakers highlighted that former employees have alleged the organization was unlawfully recruiting and exploiting immigrants without legal status. The Hill’s Juliegrace Brufke explains here.
House Dems renew push for government contractor back pay: Dozens of House lawmakers this week renewed calls to provide back pay for low-wage government contractors who were furloughed during the 35-day partial shutdown earlier this year.
{mossecondads}Forty-eight lawmakers, almost all Democrats, sent a letter to House Appropriations Committee Chairwoman Nita Lowey (D-N.Y.) and ranking member Kay Granger (R-Texas) calling on them to support legislation that would provide back pay for low-wage service contractors, such as cleaning and maintenance staff and security guards. The Hill’s Niv Elis has more here.
NEXT WEEK’S NEWS, NOW
- Lawmakers will be away from Washington next week for a district work period, so news from the Capitol should be fairly slow. But we’ll be keeping a close eye on the progress of trade talks between the U.S. and China, along with the Federal Reserve’s Federal Open Markets Committee (FOMC) meeting on Wednesday and Thursday.
- The Fed is widely expected to hold rates steady after Chairman Jerome Powell said in January that the bank would be “patient” with future hikes. The biggest news will likely come from Powell’s press conference and any remarks he makes about the state of the U.S. economy.
GOOD TO KNOW
- Just one in five adults say that they think the GOP tax plan passed in 2017 will lead to greater savings on their tax bills this year, according to a survey.
- PricewaterhouseCoopers LLP was ordered by a federal judge Friday to pay $625.3 million in damages to the Federal Deposit Insurance Corporation (FDIC) for failing to uncover fraud that led to one of the biggest bank collapses of the financial crisis, Reuters reports.
- China’s plunging economic growth is raising deeper concerns about the future of the global economy, according to Bloomberg.
- A summit between President Trump and Chinese President Xi Jinping to sign a trade deal will not happen in March, said Treasury Secretary Steven Mnuchin on Thursday, countering Trump’s previous suggestions.
- Boeing stock rebounded Friday on the heels of a report that the planemaker will release software upgrade for the grounded 737 Max aircraft within 10 days.
- The Securities and Exchange Commission (SEC) said Thursday it charged Volkswagen two of its subsidiaries, and former chief executive Martin Winterkorn with defrauding U.S. bond investors.
ODDS AND ENDS
- The Trump administration’s standoff with Chinese tech giant Huawei is entering a new phase, one that could put existing intelligence-sharing agreements with U.S. allies at risk.
- Apple is pushing back on Spotify’s accusations that the iPhone maker is putting up barriers around the streaming service in order to bolster its own competing app, Apple Music.