Trump Diverting $3.6 Billion from Military to Build Border Wall
The Department of Defense has approved a plan to divert $3.6 billion to pay for the construction of parts of President Trump’s border wall, Defense Secretary Mark Esper said Tuesday. The money will be shifted from more than 100 construction projects focused on upgrading military bases in the U.S. and overseas, which will be suspended until Congress provides additional funds.
In a letter addressed to Senator James Inhofe, chair of the Armed Services Committee, Esper said that in response to the national emergency declared by Trump earlier this year, he was approving work on 11 military construction projects “to support the use of armed forces” on the border with Mexico.
The $3.6 billion will fund about 175 miles of new and refurbished barriers (Esper’s letter does not use the term “wall”).
Esper described the projects, which include new and replacement barriers in San Diego, El Paso and Laredo, Texas, as “force multipliers” that, once completed, will allow the Pentagon to redeploy troops to high-traffic sections of the border that lack barriers. About 5,000 active duty and National Guard troops are currently deployed on the border.
Months in the making: Trump’s declaration of a national emergency on the southern border on February 15, 2019, came in the wake of a showdown with Congress over funding for the border wall. The president’s demand for $5.7 billion for the wall sparked a 35-day government shutdown, which ended when Trump reluctantly agreed to a deal that provided $1.375 billion for border security. By declaring a national emergency, Trump gave the Pentagon the legal authority to move billions of dollars around in its budget to address the purported crisis. Legal challenges to the emergency declaration are ongoing.
Conflict with lawmakers: Congress passed a resolution opposing the national emergency declaration in March, prompting Trump to issue the first veto of his presidency. Democrats on the House Appropriations Committee reiterated their opposition to Trump’s move Tuesday, saying in a letter, “As we have previously written, the decision to take funds from critical military construction projects is unjustified and will have lasting impacts on our military.”
Majority Leader Steny H. Hoyer was more forceful, saying in a statement, "It is abhorrent that the Trump Administration is choosing to defund 127 critical military construction projects all over the country … and on U.S. bases overseas to pay for an ineffective and expensive wall the Congress has refused to fund. This is a subversion of the will of the American people and their representatives. It is an attack on our military and its effectiveness to keep Americans safe. Moreover, it is a political ploy aimed at satisfying President Trump's base, to whom he falsely promised that Mexico would pay for the construction of an unnecessary wall, which taxpayers and our military are now being forced to fund at a cost of $3.6 billion.”
A group of 10 Democratic Senators said in a letter to Esper that they “are opposed to this decision and the damage it will cause to our military and the relationship between Congress and the Department of Defense.” They said they also “expect a full justification of how the decision to cancel was made for each project selected and why a border wall is more important to our national security and the well-being of our service members and their families than these projects.”
Politico’s John Bresnahan, Connor O'Brien and Marianne LeVine said the diversion will likely be unpopular with Republican lawmakers as well. Republican Senators Mike Lee and Mitt Romney expressed concerns Wednesday about funds being diverted from their home state of Utah. "Funding the border wall is an important priority, and the Executive Branch should use the appropriate channels in Congress, rather than divert already appropriated funding away from military construction projects and therefore undermining military readiness," Romney said.
The Pentagon released a list of construction projects that will be affected late on Wednesday (you can review a screenshot tweeted by NBC News’ Alex Moe here).
An $8 billion effort: In addition to the military construction funds and the money provided by Congress, the Trump administration is using $2.5 billion in drug interdiction money and $600 million in Treasury forfeiture funds to support the construction of barriers on the southern border, for a total of approximately $8 billion. (More on that here.)
The administration reportedly has characterized the suspended military construction projects as being delayed, but to be revived, those projects would require Congress approving new funding. House Democrats have vowed they won’t “backfill” the money.
The politics of the wall: Trump has reportedly been intensely focused on making progress on the border wall, amid news that virtually no new wall has been built during the first two and a half years of his presidency. Speaking to reporters at the White House Wednesday, Trump said that construction on the wall is moving ahead “rapidly” and that hundreds of miles will be “almost complete if not complete by the end of next year … just after the election.”
Watch Jeb Bush Do His Best Donald Trump Impression with Stephen Colbert
Unless you've been in your own personal media blackout for the last few days, you're probably aware that Stephen Colbert kicked off his new show Tuesday night and that Jeb Bush was one of his first guests. While the maiden voyage of the new “Late Show” has drawn mixed reviews -- “promising, if he relaxes” says USA Today, referring to the host – the show provided plenty of entertaining bits and compelling if somewhat odd moments.
Like much of the show, Colbert’s conversation with Bush was a mixed bag. Both host and guest seemed a bit nervous and some of their lines fell flat. Surprisingly, one of the more entertaining parts of their conversation never made it on air: Colbert had Bush read some text written in the bombastic voice of Donald Trump. Bush was game for the joke, and the results are worth a look.
The fun at Trump's expense starts at the 2:32 mark, when Stephen Colbert refers to the "big, orange elephant in the room."
Top Reads from The Fiscal Times:
- Fading Fast in New Hampshire, Bush Dips into War Chest
- The 2016 Presidential Primary Carnival Rages On
- There’s Only One Candidate People Actually Like – and It’s Not Trump or Clinton
Here’s Why Home Prices Are Climbing So Quickly
Want to buy a home but finding slim pickings? Blame the builders.
New home construction has not kept pace with the improving job market in recent years and is part of the reason that housing inventory is so scarce and home prices are growing so quickly, according to a report released today by the National Association of Realtors.
After over-building leading up to the housing bubble, developer laid off workers and scaled back construction by more than 75 percent. After the crash many of those workers migrated to other industries, making it harder for builders to quickly ramp up work. There are also fewer builders now than there were a decade ago, with many going bust in the bubble and others consolidating with competitors.
Related: How a Smart Home Can Save You Time and Money
While home starts have come back since the recession, the new NAR report finds that in two-thirds of markets homebuilding activity has not kept pace with the number of newly employed workers. In particular, construction of single-family homes remains at less than half its prerecession levels.
Many of the markets with the largest disparity of jobs versus home construction were hit hardest by the housing crisis but have fully rebounded, including San Jose, San Francisco, San Diego and Miami. New York is also among the top cities where home building has not kept pace.
There are several reasons that new home construction has grown so slowly in recent years, including rising construction and labor costs and tight credit. Despite those headwinds, new home construction is expected to grow by more than 25 percent this year.
Top Reads From The Fiscal Times:
- Can Anyone Stop the $38 Billion Airline Fee Squeeze?
- 7 Common Myths That Can Ruin Your Retirement
- The 25 Most Expensive Cities for Renters
Millennials to Employers: Show Us the Money
When it comes to company loyalty, money matters to millennials. Twenty-nine percent of millennials say that a higher salary is the biggest contributor to their loyalty, according to data released Tuesday by the Staples Advantage Workplace Index.
That compares to 20 percent of the overall workforce who place a priority on salary. The difference could be related to the fact that millennials tend to make lower wages than other workers and face higher fixed costs on things like student loans and rent.
Still, the job market is tightening, making it easier for millennials who feel they are underpaid to look elsewhere for work. The unemployment rate for millennials has fallen by nearly 40 percent since its peak in 2010.
Related: 18 Companies Americans Hate Dealing With the Most
Millennials are willing to work long hours but they want to be able to do so on their own terms. More than half of younger workers said that they work from home after the work day is over, compared to 39 percent of the all workers. Nearly half of millennials said that increased flexibility would improve their happiness.
Other important factors for millennials are office perks such as a gym or free lunches, having an eco-friendly office and a company culture that encourages breaks.
Whether or not they’re happy with their current roles, millennials are looking toward the future with ambition. Seventy percent of those surveyed said they expect to be in a management position in the next five years.
Top Reads from The Fiscal Times:
- Stocks Are Sending a Recession Warning
- The 10 Fastest-Growing Jobs Right Now
- Mark Cuban: The Lesson Investors Can Learn From China
Gas Prices at an 11-Year Low for Labor Day Weekend
Drivers will be paying less at the pump as we head into one of the largest travel weekends of the year. Gas prices over Labor Day weekend haven’t been this low since 2004.
The national average price of gas is currently $2.44 per gallon, 99 cents less than this time last year, according to AAA. The average consumer can expect to save $15 to $25 on each trip to the gas station.
Related: 6 Reasons Gas Prices Could Fall Below $2 A Gallon
AAA estimates that 35.5 million people are planning to travel this weekend, a 1 percent increase from last year. The majority of travelers, 30.4 million, are expected to drive to their destinations, a rise of 1.1 percent from last year.
Gasoline prices are moving lower thanks to the falling price of crude oil. Oil has been hit by worries over economic growth in emerging markets, Iranian oil flooding the market and crude oil inventories rising due to economic and weather factors, a U.S. Energy Information Administration report finds.
For drivers, there’s more good news ahead. AAA expects gas prices to keep falling, with gas selling for $2 or less a gallon by Christmas in many parts of the U.S.
Top Reads From The Fiscal Times
- The 10 Worst States for Property Taxes
- Obama to GOP: Don’t Kill the Economy This Fall
- Why China’s Slowdown Will Lead to Sustainable Growth
SAT Scores Drop to Lowest Levels in a Decade
Student scores on the SAT have slipped to the lowest level in 10 years, according to new statistics from the College Board, again raising questions about education-reform efforts meant to improve student performance in high schools.
Just under 1.7 million students took the test this year, more than ever before. Only 41.9 percent of them reached the “SAT Benchmark” score of 1550, which indicates whether an individual is prepared for college or a career. Based on the SAT’s measure, more than 1 million students are not ready for college or for work.
Related: 10 Public Universities with the Worst Graduation Rates
The average score for high-schoolers in the class of 2015 was 1490 out of a possible 2400, down 7 points from last year. The three sections of the test — reading, writing, and math — all saw declines of at least two points.
As has been the pattern for years, certain demographic groups performed better than others. Whites and Asians, on average, received higher scores than blacks and Latinos. Students from higher-earning families received higher scores than those from families with lower income. But scores among all demographic groups except for Asians went down.
Related: The Lucrative Business of SAT Test Prep is About to Get Disrupted
The low scores are an indication that improved testing scores for elementary school students aren’t translating to gains by high-schoolers. The stark contrast in scores among racial and ethnic groups may also be a sign of systemic problems that remain a barrier to educational success. Since 2006, the scores among white students have fallen six points, pulling the average down to 1,576. The average scores for black students have dropped 14 points to 1,277.
The College Board plans to introduce a new SAT exam next year. Changes will include more of a focus on math, fewer questions on vocabulary words and an elimination of the penalty for guessing. The idea, the College Board has said, is to make the test more about what students learn in high school and the skills that college will require.
Top Reads From The Fiscal Times
- Average Family Has Saved Enough to Send One Kid to College for Half a Year
- The 5 Best and Worst Jobs for New Grads
- This College Choice Could Make You $3 Million Richer