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2018年5月7日 星期一

Overnight Defense: Trump to share Iran decision Tuesday | New details on annual defense policy bill | Congress gets classified docs on CIA nominee

 
 
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Happy Monday and welcome to Overnight Defense. I'm Rebecca Kheel, and here's your nightly guide to the latest developments at the Pentagon, on Capitol Hill and beyond.

 

THE TOPLINE: Set your clocks to 2 p.m. tomorrow -- that's when President Trump says he's announcing his decision on the Iran nuclear deal.

"I will be announcing my decision on the Iran Deal tomorrow from the White House at 2:00pm," he tweeted Monday afternoon.

Trump has until Saturday to decide whether to renew waivers for sanctions that were lifted as part of the 2015 accord. Failing to keep waiving the sanctions would essentially mean the United States is withdrawing from the deal.

Trump is widely expected to withdraw from the deal, but has sought to maintain suspense by saying that "nobody knows" what he's going to do.

The White House declined Monday to preview Trump's decision.

"The president will make an announcement on what his decision is soon," White House press secretary Sarah Huckabee Sanders told reporters minutes before Trump tweeted. "As you know, he's got a few days to do that, and we'll let you know when he's ready to make a decision on it."

 

Why people think he's withdrawing: Trump has called the Obama-era pact the "worst deal ever" but did not re-impose sanctions at earlier opportunities.

Trump did promise in January that it would be last time he waived sanctions unless European allies agree to a supplemental deal addressing what Trump sees as holes in the nuclear accord.

No such agreement appears imminent, despite several visits from and conversations with European leaders over the last few weeks.

 

Last-minute pitches: British Foreign Secretary Boris Johnson was in Washington on Monday for meetings with Vice President Pence and others to try to save the deal.

Johnson wasn't scheduled to meet with Trump, but he did appear on Trump's favorite morning show to get the message to him.

Johnson said on "Fox and Friends" that "we need to find a way of fixing" the agreement and argued against throwing "the baby out with the bath water" by "scrapping the whole thing."

He also penned an op-ed in The New York Times similarly arguing that the "wisest course would be to improve the handcuffs rather than break them."

 

If you missed it: We also took a look over the weekend at the impending deadline and the arguments being made to Trump to try to sway him one way or another. Catch up on that here.

 
 
 
 

DEFENSE BILL RELEASED: The House Armed Services Committee on Monday released the text of the chairman's mark of the annual defense policy bill.

Most of the interesting details were revealed Friday in Republican and Democratic summaries of the bill, as well as a Republican background briefing.

But some interesting tidbits emerged Monday:

 

Bill would make White House lead on efforts against 'malign foreign influence': The bill would mandate that the National Security Council coordinate the government's effort to counter "malign foreign influence."

While the document does not specifically mention Russian interference in the 2016 presidential election, the provision appears to be a direct response to Moscow's influence effort.

The proposal would direct President Trump to designate a member of the National Security Council to coordinate the interagency effort against malign foreign influence. Trump would also be required to submit to Congress a strategy for countering malign foreign influence within nine months of the bill's enactment.

The proposed legislation would specifically define malign foreign influence operations and campaigns as "the coordinated, integrated, and synchronized application of national diplomatic, informational, military, economic, business, corruption, educational, and other capabilities by hostile foreign powers to foster attitudes, behaviors, decisions, or outcomes within the United States."

 

More details on Turkey concerns: The fact that arms sales to Turkey would be halted pending a Pentagon report on U.S.-Turkish relations was first revealed Friday.

But the bill's text provided some new details on lawmakers' concerns.

Specifically, House lawmakers are warning against Turkey's potential purchase of a Russian weapons system.

"The potential purchase by the Government of Turkey of the S-400 air and missile defense system from the Russian Federation has led to tension with the relationship," the bill reads. "These actions could negatively impact common weapon system development between the United States and Turkey."

Turkey on Sunday threatened to "absolutely retaliate" against the U.S. should Congress enact the ban.

"If the United States imposes sanctions on us or takes such a step, Turkey will absolutely retaliate," Turkish Foreign Minister Mevlüt Çavuşoğlu told CNN Türk on Sunday, according to Reuters.

"What needs to be done is the U.S. needs to let go of this."

 

Top Dem wants independent panel on military aircraft crashes: Monday also brought the first amendment planned for the NDAA.

Rep. Adam Smith (D-Wash.), the top Democrat on the House Armed Services Committee, is proposing the creation of an independent commission to study military aviation safety.

"It is time to establish an independent National Commission on Military Aviation Safety, so that we can understand exactly what causes are contributing to military aviation accidents, how current rates compare to historic averages, and what steps we can take to improve military aviation safety," Smith said in a statement.

Smith's amendment to the National Defense Authorization Act (NDAA) would create an eight-person commission, with four members appointed by the president and one each appointed by the chairmen and ranking members of the House and Senate Armed Services committees.

The committee would study aviation accidents from fiscal 2013 to 2018 and compare that to historic accident rates. The commission would also be tasked with assessing causes contributing to the accidents and making recommendations on changes to safety, training, maintenance, personnel or other policies.

 

HASPEL NOMINATION FIGHT UPDATE: Gina Haspel's nomination to be CIA director is moving apace after reports emerged over the weekend that she offered to withdraw over concerns about her role in the so-called enhanced interrogation program.

On Monday, the CIA delivered to Congress a tranche of classified documents related to Haspel's controversial undercover background.

The delivery -- a single cardboard box marked "hand carry" that was wheeled in on a dolly to a secure facility in the Capitol basement -- comes as the agency is under fierce pressure from Democrats to declassify more information about Haspel's involvement in its now-defunct detention and interrogation program.

"As Acting Director Haspel promised, CIA delivered a set of classified documents to the Senate today so that every Senator can review Acting Director Haspel's actual, and outstanding record," a CIA spokesperson said in a statement

"These documents cover the entirety of her career, including her time in CIA's Counter Terrorism Center in the years after 9/11. We encourage every Senator to take the time to read the entire set of documents."

 

Another delivery: Leaders of the Senate Intelligence Committee also received from the Department of Justice the summary of a 2010 report that could shed more light on the role Haspel played in the destruction of videotapes documenting a pair of brutal interrogations.

The files from the DOJ's "Durham report" -- named after John Durham, the special prosecutor assigned to the case -- have never been made public or given to Congress.

The DOJ delivered the report summary on Monday afternoon, according to a source familiar with the matter, just days before Haspel is set to have her confirmation hearing before the committee. The disclosure stems from a request made by the committee's top Democrat, Sen. Mark Warner (Va.).

Haspel drafted the cable ordering the destruction of the tapes in 2005. Although Durham did not recommend charges for Haspel, several lawmakers on the committee have identified the incident as one of their key concerns with her nomination.

 

Trump weighs in: Trump on Monday slammed critics of his nominee to serve as the new CIA director, saying Haspel is "highly respected" and "the most qualified" for the job.

"My highly respected nominee for CIA Director, Gina Haspel, has come under fire because she was too tough on Terrorists," Trump wrote on Twitter. "Think of that, in these very dangerous times, we have the most qualified person, a woman, who Democrats want OUT because she is too tough on terror. Win Gina!"

 

ON TAP FOR TOMORROW

The Senate Armed Services Committee will receive a closed briefing on the results of the investigation into last year's ambush in Niger at 10 a.m. https://bit.ly/2Il4QWR

The House Appropriations Committee will mark up the fiscal 2019 military construction and legislative affairs appropriations bill at 10 a.m. at the Rayburn House Office Building, room 2359. https://bit.ly/2HVYmhC

The House Foreign Affairs Committee will hold a hearing on Iran with testimony from outside experts at 10 a.m. at Rayburn 2172. https://bit.ly/2HJb3fH

 

ICMYI 

-- The Hill: Appeals court upholds decision barring transfer of US-Saudi citizen detained by military

-- The Hill: Trump slams John Kerry for 'shadow diplomacy' on Iran deal

-- The Hill: Trump won't attend opening of new US Embassy in Jerusalem

-- Reuters: Afghan gunships killed and wounded 107 boys and men in attack last month: U.N.

-- Associated Press: US, Philippines launch largest military drills under Duterte 

 
 

Please send tips and comments to Rebecca Kheel, rkheel@thehill.com, and Ellen Mitchell, emitchell@thehill.com.

Follow us on Twitter: @thehill@Rebecca_H_K@EllenMitchell23

 
 
 
 
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Overnight Finance: Trump looks to rescind $15B in spending | SEC Republican commish to retire, risking deadlock | House to vote Tuesday on repealing car loan guidelines

 
 
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Happy Monday and welcome back to Overnight Finance, the coolest thing about Washington, D.C. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line.

See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.

 

THE BIG DEAL: The White House will ask Congress to revoke $15 billion in spending -- more than the $11 billion it had initially been expected to request.

The formal request to rescind $15 billion in spending is now expected on Tuesday, a day later than previously expected, according to a White House official. The request will start a 45-day period for Congress to take action.

The change from $11 billion to $15 billion is an attempt to find a compromise among competing factions of Republicans.

Conservatives want the rescinded figure to be as high as possible, while other Republicans said seeking to claw back recently approved money that was part of a bipartisan deal would hurt the appropriations process.

But a rescission package is likely to face a difficult road to passage in the House and would appear to be dead on arrival in the Senate, where Majority Leader Mitch McConnell (R-Ky.) has not shown interest.  The Hill's Niv Elis and Juliegrace Brufke take us inside the fight.

 

How we got here: The White House floated the idea of clawing back spending shortly after President Trump signed a $1.3 trillion bipartisan spending bill into law in late March. The spending bill was strongly criticized by conservatives for busting the nation's budget.

Critics of the claw-back maneuver said proposals to rescind as much as $60 billion would fly in the face of bipartisan negotiations that led to the spending bill, which was approved in the GOP-controlled House and Senate with Democratic votes.

 

What comes next: McConnell had made it clear that he does not want to take up the recission bill. Despite his insistence on sticking to the bipartisan agreement, the more pressing factor is the severe shortage of Senate floor time.

McConnell is rushing to confirm as many Trump nominees as possible before Congress recesses for the midterm elections. Democrats have waged a desperate war against the slew of conservative judges Republicans have cranked through the Senate, and there are dozens of critical federal vacancies yet to be filled under Trump.

The Senate will also need to clear a massive defense spending bill before the recess, giving McConnell little time to wage yesterday's battles.

All told, the spending clawback package could die almost as soon as it hits the Senate.

 
 
 
 

ON TAP TOMORROW



LEADING THE DAY

S-E-C-ya later: The longest-tenured Republican on the Securities and Exchange Commission (SEC) announced Monday that he will retire in July, creating a potential deadlock at the agency.

SEC Commissioner Michael Piwowar wrote in a Monday letter to President Trump that he will step down from the agency on July 7, which would leave two Republicans and two Democrats in control of the commission. 

Piwowar said it was "an honor to serve the American people at such a respected agency and work with such dedicated and talented staff." A former SEC economist, Piwowar was a staunch critic of the Dodd-Frank Act financial rules enacted after the 2007-8 financial crisis. 

 

So what? Piwowar's departure could hinder the SEC's efforts under Chairman Jay Clayton (R) to loosen rules on financial advisers and companies seeking to go to public.

The SEC currently has a slight majority of Republican commissioners with Clayton, Piwowar and Hester Peirce. The empty Republican seat would give Democratic commissioners Kara Stein and Robert Jackson power to block proposals that would roll back key Dodd-Frank rules or ease disclosure requirements for firms.

Peirce thanked Piwowar in a tweet "for serving America's investors so well for so long," but alluded to the potential deadlock his departure would create.

"Notwithstanding your announcement, maybe you could redo the cost-benefit analysis and consider staying at the SEC a bit longer?," Peirce tweeted.

The White House will be forced to consider a replacement for Piwowar amid other vacancies at federal financial agencies. Trump has not yet nominated a full-time director for the Consumer Financial Protection Bureau, vice chairman of the Federal Deposit Insurance Corporation or president of the Export-Import Bank.



House to vote Tuesday on CFPB auto-lending guidance repeal: The House is on track to vote Tuesday to repeal the Consumer Financial Protection Bureau's controversial 2013 auto-lending guidance.

The vote would repeal the CFPB's policy against "dealer markups" the interest a dealer adds to a customer's third-party loan as extra compensation.

The repeal effort, which passed the Senate last month, is almost certain to clear the House and be signed by President Trump.

Republicans have dismissed accusations of discrimination and panned the CFPB policy as an unjustified crusade against a standard financing tool. Advocates for auto dealers and their congressional allies said lenders were committed to fairness and that the CFPB had exploited a loophole.

Defenders of the CFPB guidance insist that repeal could lead to widespread discrimination against minorities. Liberal lawmakers and financial sector critics insist that the CFPB policy is a crucial check against subconscious racial biases that could cost vulnerable customers thousands of dollars.

 

Further reading:

 

MARKET CHECK: Stocks rose at first on Monday but turned downward after President Trump tweeted that he'd announce his decision on the Iran nuclear deal Tuesday. The markets closed with slight gains. The Dow Jones Industrial Average gained 94 points on the day (0.39 percent), while the S&P 500 and Nasdaq increased 0.35 percent and 0.77 percent each.

 

GOOD TO KNOW

  • Wells Fargo said Friday it will pay $480 million to settle a lawsuit filed by investors related to the bank's 2016 sales scandal involving the opening of unauthorized accounts.
  • A House Republican tax-writer in an op-ed in The Wall Street Journal is taking issue with Sen. Marco Rubio (R-Fla.)'s recent criticisms of the GOP's corporate tax cut. Republicans hope that touting the new tax law will help them in the midterm elections. Many Republicans saw Rubio's recent remarks as undercutting that message.
  • But there are also questions about whether that message is resonating with voters. GOP incumbents in competitive reelection races are spending less time talking about the new tax law than they were at the beginning of the year, according to an analysis Reuters published Monday.
  • Geopolitical tensions are pushing oil prices higher, according to Bloomberg.
  • The IRS has started sending penalty notices to businesses that failed to comply with the Affordable Care Act's employer mandate, angering Republicans and business groups, according to The New York Times.
  • The CFPB payday lending rule seems to be safe from repeal efforts--for now, according to Bloomberg BNA.
  • Apple is on track to become the first trillion dollar company in the world, with a $920 billion market cap and a cash pile of $167 billion after $100 billion in expected stock buybacks, according to Axios.
  • Bank of America Corp is preparing to provide critical financing to Remington Outdoor Co., which makes assault-type rifles, just weeks after the U.S. bank said it would stop financing "military-style" firearms for civilians, according to Reuters.
  • Trump officials rejected a request from Kansas to place lifetime limits on Medicaid benefits, drawing a line on conservative changes to the program.

 

ODDS AND ENDS

  • Bitcoin prices slumped below $9,200 after nearing $10,000 over the weekend following criticism from some notable billionaires, according to CNBC.
 
 

Write us with tips, suggestions and news: slane@thehill.comvneedham@thehill.comnjagoda@thehill.com, and nelis@thehill.com. Follow us on Twitter: @SylvanLane,  @VickofTheHill@NJagoda, and @NivElis.

 
 
 
 
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SearchCap: AdWords interface changing, manual penalties & link building

 


 
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Ask the SMXpert: Google manual penalties explained

 

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