The government shutdown "is abstract for most Americans," writes Axios' Mike Allen, but it's about to get very real very quickly. In the markets, nothing's going to get SEC approval while the shutdown is in effect. That means no IPOs, just for starters.
What's happening: The government also attempted to halt bankruptcy proceedings at a nursing-home chain, blaming the shutdown. Both debtors and creditors agree that would put patient health at risk. As Mike says, crunch time is coming. The shutdown will impose real hardship on the nation and its economy.
On day 16 of the partial government shutdown, President Trump tweeted that Vice President Mike Pence's meeting on Sunday with Democratic congressional representatives had been "productive," announcing that his administration is now "planning a Steel Barrier rather than concrete."
The big picture: Trump's tweet echoes a concession first offered by acting chief of staff Mick Mulvaney on NBC's "Meet the Press" — and floated by Trump in another tweet last month. But a Democratic official familiar with the meeting blasted Trump's take, saying that it started 45 minutes late after administration officials were unprepared to justify the $5.7 billion they've requested for the wall, though the Washington Post reported that the White House drafted a letter that more specifically outlined the administration's proposals, including $800 million for "urgent humanitarian needs." The official added that no progress had been made — and no other meetings of the group had been scheduled.
President Trump told reporters outside the White House on Sunday that he’s "in no hurry" to replace his acting Cabinet secretaries with formal replacements, saying, "I have acting, and my actings are doing really great. ... I sort of like acting. It gives me more flexibility, do you understand that?"
Why it matters: Trump's attorney general, secretaries of Defense and Interior, EPA head, and UN ambassador are all working in acting capacities, despite being Senate-confirmed positions. The appointment of Matthew Whitaker as acting attorney general, in particular, came under fire as potentially unconstitutional — even from conservative legal scholars like John Yoo. And the Washington Post reported this week that Patrick Shanahan's position as acting Defense secretary could also be constitutionally murky. Furthermore, Trump, who campaigned on "draining the swamp," faced criticism for his acting secretaries' lobbying ties.
White House press secretary Sarah Sanders told "Fox News Sunday" that President Trump "means what he says" regarding his threats to keep the government shut down for months or even years over his request for border wall funding.
The big picture: Sanders added that congressional Democrats "agree" with Trump on the need for more border security, but "they just are unwilling to let this president win." Trump echoed that sentiment during a press gaggle outside the White House on Sunday, telling reporters, "Schumer and Nancy Pelosi and myself could solve this in 20 minutes if they want to." Congressional Democrats have offered Trump $1.3 billion in additional border security funding — not the $5.7 billion the administration wants for a wall.
President Trump told reporters outside of the White House on Sunday that he "can relate" to furloughed federal workers, adding that he expects they "will make adjustments" while they do not receive paychecks during the ongoing government shutdown.
The big picture: Republican sources told Axios' Mike Allen that they believe the only thing that will make Trump cave on the shutdown and his border wall demands is the moment when the hardships of hundreds of thousands of furloughed government employees become a staple of local news coverage across Trump country. But Trump personally seems to believe that those workers will stand with him, telling reporters that "many of those people who won't be receiving a paycheck, many of those people agree with what I'm doing."
Acting White House chief of staff Mick Mulvaney told Chuck Todd on NBC's "Meet the Press" Sunday that President Trump would be willing to "give up a concrete wall, replace it with a steel fence" at the U.S.-Mexico border in order to appease Democrats and end the government shutdown.
With the departure of White House chief of staff John Kelly, the misinformation emanating from President Trump has only escalated.
What's happening: Alumni of this White House see a possible reason. Although Kelly was thwarted in many of his efforts to control the president, one place he made authentic inroads was clamping down on the paper flow to the Oval Office. "Anyone who circumvented that process was going to have a serious problem," said a former official who saw the transformation up close.
Sen. Elizabeth Warren (D-Mass.) is spending the weekend in Iowa, giving the 2020 Democratic primary an early kickoff while remaining the party's only heavyweight to have entered the field.
The big picture: Warren hasn't technically announced her candidacy — opting at this stage to instead launch an "exploratory committee" — but her event in Iowa on Friday had "all the hallmarks of a candidate meant to last," notes the New York Times' Astead Herndon. Rather than wait around for Bernie Sanders or other women to declare, Warren is already laser focused on "building her network in a crucial state," Democratic political consultant Joe Trippi tells the Boston Globe.
Top Trump Cabinet and administration officials will no longer be receiving a previously planned pay raise, as the government shutdown enters its third week.
Details: The original $10,000 pay hikes were a consequence of the shutdown, as an existing freeze on raises for top federal executives expired when Congress failed to pass a spending bill in December. Margaret Weichert, acting director of the Office of Personnel Management, said in a memo on Friday, however, that it would be "prudent for agencies to continue to pay these senior political officials at the frozen rate until appropriations legislation is enacted."
In a tweet Saturday morning, President Trump claimed, without evidence, that "most of the workers not getting paid" due to the partial government shutdown are Democrats.
I don’t care that most of the workers not getting paid are Democrats, I want to stop the Shutdown as soon as we are in agreement on Strong Border Security! I am in the White House ready to go, where are the Dems?
Why it matters: In the Oval Office on Christmas morning, Trump said federal workers have told him to "stay out until you get the funding for the wall.” He followed up on that claim in a press conference Friday afternoon, telling reporters that "many of the people that we're talking about ... agree with what we're doing." Republican sources tell Axios that the White House is likely to cave when the hardships inflicted on 800,000 federal workers become a staple of local news coverage across Trump country.
Democrats didn't waste any time this week after taking the majority in the House, electing Nancy Pelosi as speaker, passing several high-profile bills and driving some spirited news cycles beyond just the chamber floor.
Yes, but: While Democrats are energized in the House, Republicans still hold the Senate and the White House, which is sure to derail much of Pelosi's aggressive agenda.
Asked during a Rose Garden news conference yesterday about a safety net for furloughed federal workers, President Trump replied:
"[T]he safety net is going to be having a strong border, because we’re going to be safe. ... I really believe that these people — many of the people that we’re talking about, many of the people you’re discussing — I really believe that they agree with what we’re doing."
Why it matters: A strong border doesn't pay the rent. Republican sources tell me that although they don't see an imminent solution to the shutdown — Trump said yesterday it could last for months or even years — the White House is likely to cave when 800,000 federal workers stop getting paid and the hardships become a staple of local news coverage across Trump country.
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