China Will Be The Straw That Will Stir The World’s Economic Drink?

(THIS ARTICLE IS COURTESY OF THE SHANGHAI DAILY NEWS)

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Forum hears pledge of more effort to revitalize China’s real economy

CHINA will remain committed to ensuring innovation drives development and will increase efforts to revitalize the real economy, Vice Premier Zhang Gaoli said yesterday.

“The real economy is the foundation of economic growth and we will optimize it,” Zhang said at the opening ceremony of the China Development Forum 2017 in Beijing.

China will improve its capabilities in scientific innovation and boost the development of strategic emerging sectors and modern manufacturing while transforming traditional industries with new technology and business models, he said.

The government will continue to promote entrepreneurship and the “Internet Plus” plan to meet the diverse needs of the market and Chinese companies will be encouraged to use craftsmanship to establish competitive brands that can stand the test of time.

China will further reduce costs for enterprises by streamlining administration and pushing forward tax reforms, and prevention and control of financial risks will be elevated to a higher position on the government’s agenda, Zhang said, adding that China will manage risks in bad loans, bond default, property bubbles and Internet finance to avoid systemic financial risks.

To stimulate growth and improve market vitality, China should increase supply-side structural reform, Zhang said.

Highlighting the basic tone of “seeking progress while maintaining stability,” he underscored the need for efforts to maintain growth, ensure employment and counteract risks from home and abroad.

China will forge ahead with its supply-side reform, cutting steel production capacity by around 50 million tons and coal capacity by over 150 million tons this year, he said.

The country will prioritize de-stocking unsold houses in third and fourth-tier cities as it fights speculation in the housing market, he added.

Zhang restated China’s commitment to better air, water and soil quality.

The government will speed up the reform of state-owned enterprises, make concrete mixed-ownership reforms in sectors such as power, petroleum, railways, civil aviation and telecommunications and open the market to more private investment, Zhang said.

On the close ties between China and the world economy, he stressed the need to advance globalization and fight protectionism.

“China is willing to join efforts with the international community to steer the world economy toward strong, sustainable, balanced and inclusive growth,” he said.

The country will continue to implement its opening-up strategy and advance the Belt and Road Initiative, he added.

China will host the Belt and Road Forum for International Cooperation in May. Taking part in this “new chapter in win-win cooperation” will be more than 20 heads of state and government, more than 50 leaders of international organizations, more than 100 ministerial-level officials, and more than 1,200 delegates.

Beijing suspends last of its coal-fired power plants: China Goes To The Future: Trump, U.S. In Reverse

(THIS ARTICLE IS COURTESY OF THE SHANGHAI DAILY NEWS)

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Beijing suspends last of its coal-fired power plants

BEIJING’S last large coal-fired power plant has suspended operations, meaning the capital has become the first city in China to have all its power plants fueled by clean energy.

The Huangneng Beijing Thermal Power Plant came into operation in June 1999. It has five coal-fired units with a total installed capacity of 845,000 kilowatts and heating capacity of 26 million square meters.

Du Chengzhang, the plant’s general manager, said it is an efficient and environmental friendly plant with advanced emission treatment equipment. The plant has provided important support to the stable operation of Beijing’s electric power system and the heat-supply system, he said.

After the suspension of the plant on Saturday, about 1.76 million tons of coal, 91 tons of sulfur dioxide and 285 tons of nitrogen oxide emissions a year will be cut.

According to a clean air plan by Beijing from 2013 to 2017, the city was to build four gas thermal power centers and shut down the four large coal-fueled thermal power plants.

The other three plants which used to consume over 6.8 million tons of coal each year were closed in 2014 and 2015.

Du said Huangneng will prepare to serve as an emergency heat source for the capital’s heating system after operations cease.

Three of the four gas thermal power have already been built and are in use.

Beijing has 27 power plants, all fueled by clean energy with a total installed capacity of 11.3 million kilowatts.

Under the plan, Beijing will build no more large-scale power plants.

For China And The U.S. ‘Cooperation Is The Only Way Forward’

(THIS ARTICLE IS COURTESY OF THE SHANGHAI DAILY NEWS)

HOME » NATION

Cooperation the only way forward

COOPERATION is the only correct choice for China and the United States, President Xi Jinping told visiting US Secretary of State Rex Tillerson in Beijing yesterday.

There are important development opportunities resulting from China-US relations, said Xi during the meeting in the Great Hall of People in Beijing.

Xi said he had maintained sound communications with his US counterpart Donald Trump through phone calls and messages, and they had agreed that the two countries could be good cooperative partners.

Xi said that to advance China-US ties in a healthy and steady manner, both sides could enhance exchanges at various levels; expand cooperation in bilateral, regional and global fields; and properly address and manage sensitive issues.

Xi suggested the two countries increase strategic trust and mutual understanding, review bilateral ties from long-term and strategic perspectives and expand fields of cooperation for their mutual benefit.

The two countries should also enhance coordination on regional hotspot issues, respect each other’s core interests and major concerns and encourage friendly exchanges between their two Peoples.

Tillerson told Xi, who extended an invitation for President Trump to visit China, that the US president valued communications with his Chinese counterpart and looked forward to meeting Xi and visiting China.

The US side is ready to develop relations with China based on the principle of no conflict, no confrontation, mutual respect and win-win cooperation, said Tillerson.

China and the US are discussing arrangements for a meeting between the two presidents and exchanges at other levels, Chinese Foreign Minister Wang Yi said during his talks with Tillerson on Saturday.

“We attach great importance to your visit,” Wang told the US visitor at the Diaoyutai State Guesthouse in Beijing.

It was Tillerson’s first visit to China since he assumed office last month and he is also the first Cabinet-level official in the new US administration to visit.

China-US ties are developing steadily in a positive direction, Wang said.

He called for more cooperation in foreign affairs, the economy and trade, the military, law enforcement, people-to-people exchanges and local communication.

The essence of China-US trade relations is mutual benefit, said Wang, and he encouraged both countries to expand trade and investment cooperation.

Wang also restated China’s position on Taiwan and South China Sea issues, emphasizing that China and the US should respect each other’s core interests and major concerns, discreetly deal with sensitive issues to protect bilateral ties from unnecessary influences.

Tillerson said the US adheres to the “One China” policy and added that closer cooperation and coordination between the two countries was necessary in the face of a changing international situation. The US would like to have more high-level exchanges with China, and more dialogue in diplomatic security, macroeconomic policy coordination, law enforcement, cyberspace and people-to-people exchanges, he said.

Tillerson’s visit aims to make “political preparations” for the meeting between two presidents, and both sides would make the best use of this chance to seek common ground, said Jia Xiudong, a researcher with the China Institute of International Studies.

Tillerson arrived in Beijing on Saturday from Seoul. His first official Asian tour began on Wednesday and also took him to Japan.

US, China to Increase Cooperation on North Korea

(THIS ARTICLE IS COURTESY OF THE SAUDI NEWS PAPER ASHARQ AL-AWSAT)

World

US, China to Increase Cooperation on North Korea

Korea

Beijing – The United States and China vowed to work together against threats of the North Korea’s nuclear program, while US Secretary of State Rex Tillerson warned that the situation has reached a “dangerous” level.

Tillerson and his Chinese counterpart’s language seemed more reconciliatory in light US President Donald Trump’s accusations that China was not exerting enough efforts to control its troublesome neighbor. Beijing had meanwhile accused the White House of causing tensions.

“I think we share a common view and a sense that tensions on the peninsula are quite high right now and things have reached a rather dangerous level. And we have committed ourselves to doing everything we can to prevent any kind of conflict from breaking out,” Tillerson added during a press conference in Beijing with Foreign Minister Wang Yi.

Tillerson’s visit to China is the last leg of his Asian trip, where he made stops in Japan and South Korea.

He avoided using strong language during the joint press conference with Wang, who seemed to have reproached his counterpart for statements he had made earlier this week.

Wang urged the US to remain “cool-headed” and defended his government’s position, saying all international parties should seek diplomatic solutions while implementing UN sanctions against the regime in North Korea.

“We hope that all parties, including our friends from the United States, could size up the situation in a cool-headed and comprehensive fashion and arrive at a wise decision,” he added.

Neither parties announced any tangible future steps to solve the issue and Tillerson did not publically respond to Beijing’s calls for negotiations with North Korea.

Trump had increased the pressure on China, accusing it of not exploiting all means possible to control North Korea, whom he said considered Beijing to be its closest ally and economic benefactor.

“North Korea is behaving very badly. They have been ‘playing’ the United States for years. China has done little to help!” he tweeted.

The developments come after North Korea conducted two nuclear tests last year and launched missiles last month. The US considered the test-launch an attack on its bases in Japan.

The developments alarmed South Korea, spurring it to deploy the US’s Terminal High Altitude Area Defense System (THAAD). The Chinese leadership had accused the US of aggravating the situation through military trainings with its ally Seoul and the deployment of THAAD.

China is hesitant to increase its pressure on North Korea, whose reactions can be unpredictable.

Washington and Seoul insist that the THAAD system is for defense purposes only, but Beijing fears it could undermine its capabilities to denuclearize North Korea.

Beijing had always called for diplomatic talks to denuclearize North Korea, which is barred by the UN from proceeding with its program.

Wang also said that the Korean peninsula nuclear issue is of interest to everyone, reiterating his country’s commitment to the goal of denuclearization

“We are for the settlement of this issue through dialogue and negotiations and the maintenance of peace and stability on the peninsula and the overall region,” he added on Saturday.

Wang reiterated that China, as a close neighbor of the peninsula and a major power, has devoted a lot of energy and efforts to seek a settlement to the issue. The tremendous important efforts China has made are visible to all, he said.

Tillerson, who was CEO of ExxonMobil before being appointed secretary of state, said that a military option is possible if Pyongyang intensified its work.

“We do believe that if North Korea stands down on this nuclear program, that is their quickest means to begin to develop their economy and to become a vibrant economy for the North Korean people,” the US officials said.

He added: “All options are on the table, but we cannot predict the future.”

Maybe one of the reasons for the calm American-Chinese rhetoric is the expected talks between US President Trump and Chinese President Xi during the latter’s upcoming visit to US next month, the first such summit between the two leaders.

Trump is expected to host Xi at his Mar-a-Lago resort in Palm Beach on April 6 and 7 for an informal “no necktie” encounter. Experts hope this meeting will reduce tensions between the two officials.

China shares US fears of Pyongyang’s nuclear ambition, but it makes sure not to provoke its neighbor.

In February, Beijing issued a strong position when it announced it will stop coal imports from North Korea until the end of this year.

North Korea expert at Beijing University Wong Dong said: “It is a mistake to think that China can control Pyongyang and it is not reasonable for Washington to accuse Beijing of doing nothing. The situation is complicated and sensitive and there is no magical solution.”

The Obama administration ruled out any diplomatic involvement with Pyongyang until the latter shows commitment to denuclearization.

The communist state insists on owning nuclear weapons to defend itself and executed its first test in 2006 despite international objection. It had done four other tests, two last year.

Asharq Al-Awsat

Asharq Al-Awsat

Asharq Al-Awsat is the world’s premier pan-Arab daily newspaper, printed simultaneously each day on four continents in 14 cities. Launched in London in 1978, Asharq Al-Awsat has established itself as the decisive publication on pan-Arab and international affairs, offering its readers in-depth analysis and exclusive editorials, as well as the most comprehensive coverage of the entire Arab world.

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Trump: Germany Owes US, NATO Vast Sums of Money

(THIS ARTICLE IS COURTESY OF THE SAUDI NEWS AGENCY ASHARQ AL-AWSAT)

World

Trump: Germany Owes US, NATO Vast Sums of Money

Trump

Washington –President Donald Trump said on Saturday that Germany owed “vast sums of money” to NATO and the US, and that Berlin “should pay.”

Trump’s statements come following his meeting with German Chancellor Angela Merkel in Washington.

Trump took it to twitter where he said: “Nevertheless, Germany owes vast sums of money to NATO & the United States must be paid more for the powerful, and very expensive, defense it provides to Germany!”

The two leaders did not show any signs of agreement on several pending issues, including NATO and defense expenditures.

During a joint press conference with Merkel, Trump complained that other NATO members have not paid their dues for years. He insisted they pay for “their fair share of the defense they receive.”

NATO countries are asked to contribute 2 percent of their GDP to the alliance’s defense spending.

Merkel said that Germany agreed on the need for “increasing expenditure” to meet the 2 percent goal.

Trump then criticized the way the media had dealt with the meeting saying on Twitter also: “Despite what you have heard from the FAKE NEWS, I had a GREAT meeting with German Chancellor Angela Merkel.”

Expenditure was not the only point of disagreement between the two. A German journalist brought up the case of wiretapping and Trump’s accusations that British Intelligence was working with Obama to spy on him.

Despite constant negations and absence of evidence, the US President continued with his allegations and even joked that Merkel had also been a victim of wiretapping.

Since his arrival at the White House, the Republican billionaire had written several controversial tweets, none of which had damaged his credibility as much as the one he wrote on March 4.

He tweeted: “Terrible! Just found out that Obama had my ‘wires tapped’ in Trump Tower just before the victory. Nothing found. This is McCarthyism.”

Media reports reveal each day new findings on Trump’s or his close personnel’s contacts with Russia.

Trump had repeatedly denied any affiliations to the Kremlin, but he could not control the flow of information and therefore decided to attack his predecessor.

Since then, Obama, former intelligence director James Clapper and many democratic and republican officials have denied those allegations.

Attorney General Jeff Sessions had to apologize to the UK for press secretary Sean Spicer’s allegation that the GCHQ had spied on Trump Tower for Obama. Spicer almost caused a diplomatic crisis by defending the president.

On Thursday, Spicer quoted a series of articles that discussed surveillance. He referenced comments made earlier this week on Fox News TV by Andrew Napolitano in relation to Trump’s controversial claim that wiretaps had been installed at his New York residence.

“Three intelligence sources have informed Fox News that President Obama went outside the chain of command. He didn’t use the NSA, he didn’t use the CIA, he didn’t use the FBI and he didn’t use the Department of Justice. He used GCHQ,” Spicer said in the press conference.

British officials were quick to comment on Napolitano’s claims, saying they were “rubbish”.

A government source reportedly said the claim was “totally untrue and quite frankly absurd”.

It told Reuters that under British law, GCHQ “can only gather intelligence for national security purposes” and noted that a US election “clearly doesn’t meet that criteria”.

“As for as wiretapping, I guess by this past administration, at least we have something in common, perhaps,” Trump said during his press conference with Chancellor Merkel, referring to reports that the National Security Agency had tapped Merkel in 2010.

Such incidents do not reassure US Congressmen, including those in Trump’s camp. Trump promised to reveal next week new evidences that prove his allegations.

Chairman of the House intelligence committee, Devin Nunes confirmed Friday that the Justice Department had “fully complied” with the committee’s request.

He did not provide any further details.

FBI Director James Comey is set to testify before the House Intelligence Committee on Monday.

The public hearing is the first of several that the intelligence committees are expected to hold on alleged Russia’s interference in the presidential election.

Asharq Al-Awsat

Asharq Al-Awsat

Asharq Al-Awsat is the world’s premier pan-Arab daily newspaper, printed simultaneously each day on four continents in 14 cities. Launched in London in 1978, Asharq Al-Awsat has established itself as the decisive publication on pan-Arab and international affairs, offering its readers in-depth analysis and exclusive editorials, as well as the most comprehensive coverage of the entire Arab world.

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Demonetisation Be Damned! The Indian Rupee Is On A Tear

(THIS ARTICLE IS COURTESY OF QUARTZ INDIA)

LOOK AT IT FLY

Demonetisation be damned! The Indian rupee is on a tear

March 17, 2017 Quartz India

It’s been a great week for the Indian rupee.

On March 16, at Rs65.41 per US dollar, the currency hit a one-year high against the greenback.

Much of the strengthening has to do with the ruling Bharatiya Janata Party’s (BJP) recent electoral wins in Uttar Pradesh and Uttarakhandand solid performances in two other states. The strong showing reflects just how well the party is positioned to sweep the next general elections in 2019 and hand Narendra Modi a second term as prime minister. Some of that magic is rubbing off on the markets.

“Since the start of the week, equity markets and the Indian rupee have rallied sharply in response to the strong performance of the main ruling party in recent state elections,” DBS Bank said in a March 16 report.

So far, the Indian currency has been the third-best performing in Asia in 2017. The rupee has gained 3.4% this year against the US dollar, only trailing the South Korean won and the Taiwanese Dollar.

Meanwhile, the US Federal Reserve’s interest rate hike on March 15—only the third since the economic crisis of 2008—hit the dollar. When the US dollar falls, capital outflows from emerging markets are restricted, thus strengthening local currencies like the Indian rupee.

The rupee’s strengthening comes after a free fall triggered by Modi’s move to demonetise 86% of the currency notes (by value) in November 2016. Initially it had been estimated that the currency ban would dent the GDP and take a toll on the economy.

In January, a Reuters poll of some 30 foreign exchange strategists had estimated that the Indian currency could see a record fall this year because of the currency ban. But India’s Central Statistical Office’s estimates show that the economy grew at 7% during the October-December 2016 quarter, and the rupee is holding strong.

One reason for the rupee’s surge is also that the macro-economic factors that influence a currency—inflation and current account deficit (CAD)—are looking good for India at the moment. While inflation is being restricted in its safe zone of sub 6%, India’s CAD (the excess of imports over exports) has also been falling.

What next

A strong rupee is good news for corporate India. Many firms hold debt in foreign currencies, so a fall in the exchange rate means their interest outgo will reduce. “Many Indian entities including short-term trade finance people remain unhedged for their offshore liability. They (companies) are likely to have gained from the rupee’s sharp rise in the last few days. At least, interest liability has reduced, adding to balance sheet gains,” Jayesh Mehta, country treasurer at Bank of America told the Economic Times.

However, the Reserve Bank of India (RBI) could soon step in to stabilise the rupee’s movement. Some reports suggest that the central bank already is buying dollars through public sector banks.

“The rupee appreciation, we feel is not sustainable and would revert to the range of Rs66-66.5 range, to begin with as the fundamentals do not warrant such unbridled enthusiasm,” a report by CARE Ratings said. “The outcome of the elections has been the main driving force. A strong rupee may not be good for our exports and the RBI is cognizant of the same.”

Significant Breakthroughs For Riyadh Diplomacy In China And In The U.S.

(THIS ARTICLE IS COURTESY OF THE SAUDI NEWS AGENCY ASHARQ AL-AWSAT)

Opinion

Significant Breakthroughs for Riyadh

This has been a significant week for Saudi diplomacy: reinforcing relations with China, the biggest oil importer in the world and opening a new page with US President Donald Trump to mend what has been ruined by former President Barack Obama who strengthened ties with Iran against Gulf and Saudi interests.

Saudi Arabia that has found itself cornered due to wars, oil and geopolitical changes is carrying out a defense campaign in return — Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud is convening with China leadership that asked to mediate with Iran that is now seeking reconciliation. Meanwhile, Deputy Crown Prince Mohammed bin Salman bin Abdulaziz met with the US president.

A Saudi spokesperson described to Bloomberg the meeting in the White House as “a turning point”, saying: “Today’s meeting has put things on the right track and marked a significant shift in relations, across all political, military, security and economic fields.” There is a clear hinting on fixing what has been ruined by Obama and restoring special relations between the two countries – these relations were established based on the outcome of the meeting held between King Abdulaziz and US President Theodore Roosevelt on board of the Navy cruiser Quincy after the end of World War II.

Officially, little has been said on the meeting of Deputy Crown Prince and Trump, who has become a president two months ago, but the White House showed huge interest. Trump held the meeting two days ahead and included the vice-president in it.

What has been stated by unofficial sources reveals that Washington has changed its policy towards Iran and that it would not sit idle when it comes to Iran’s terrorist activities. Weeks ago, the US administration announced a different stance in which it permitted loading ammunition and providing intelligence information to support Saudi Arabia in Yemen.

Saudi-US relations were tense during the presidency of Obama. In fact, the whole region underwent an unprecedented turmoil because Obama’s openness towards Iran urged its military expansion in Iraq, Syria and Yemen. Chaos is one of his tenure consequences, also.

Among the topics raised by Prince Mohammed during his visit was to persuade Trump with a new relation that seeks mending the situation, confronting Iran’s manipulation and fighting terrorism – the common enemy of everyone – via fighting it socially and economically. A spokesperson in the delegation pointed out that the US party is interested in reinforcing participation in the economic vision projects.

In China, Iran was not the only topic on the table especially that relations are good in: oil, economy, military cooperation and critical files, basically the military cooperation. There is also the promising project of China, the Silk Road – a giant economic project of complex political problematic issues because it passes in conflict regions. This road might benefit from Saudi Arabia as a passage or a parallel route.

Information released by Beijing reveals that it will quietly continue to consolidate its presence in west Asia and east Africa. China is the second strongest economic power after the US and, as major countries, needs raw materials, energy sources, trade passages and a protection for its investments and interests.

Unlike other major countries, China does not rely on military presence to impose its influence but rather uses its economic presence to impose its stances and secure its interests.

There are two models in the Middle East: one that seeks reinforcing relations via economic and development cooperation and another that uses wars and terrorism as a method to impose its relations.

Abdulrahman Al-Rashed

Abdulrahman Al-Rashed

Abdulrahman Al-Rashed is the former general manager of Al-Arabiya television. He is also the former editor-in-chief of Asharq Al-Awsat, and the leading Arabic weekly magazine Al-Majalla. He is also a senior columnist in the daily newspapers Al-Madina and Al-Bilad. He has a US post-graduate degree in mass communications, and has been a guest on many TV current affairs programs. He is currently based in Dubai.

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SWIFT Messaging System Cuts Off Remaining North Korean Banks

 

(THIS ARTICLE IS COURTESY OF REUTERS NEWS AGENCY)

SWIFT messaging system cuts off remaining North Korean banks

By Tom Bergin | LONDON

SWIFT, the inter-bank messaging network which is the backbone of international finance, said it planned to cut off the remaining North Korean banks still connected to its system, as concerns about the country’s nuclear program and missile tests grow.

SWIFT said the four remaining banks on the network would be disconnected for failing to meet its operating criteria.

The bank-owned co-operative declined to specify what the banks’ shortcomings were or if it had received representations from any governments.

Experts said the decision to cut off banks which were not subject to European Union sanctions was unusual and a possible sign of diplomatic pressure on SWIFT.

Belgium-based SWIFT has previously refused to cut off Burmese, Russian or Syrian banks which were subject to sanctions by other countries, such as the United States, citing a policy of remaining politically neutral.

SWIFT ignored years of pressure linked to Iran’s nuclear program, and only cut off Iranian banks in 2012 after the EU passed specifically tailored sanctions. SWIFT is overseen by the central bank of Belgium which is subject to EU law.

“The DPRK (Democratic People’s Republic of Korea) banks remaining on the network are no longer compliant with SWIFT’s membership criteria,” SWIFT spokeswoman Natasha de Teran said in a statement.

“As a result, these entities will no longer have access to the SWIFT financial messaging service. Given the increased ongoing international attention on the DPRK, SWIFT has informed the Belgian and EU authorities,” she added.

Last week, the Belgian authorities said they would no longer allow SWIFT to provide services to North Korean banks which were under U.N. sanctions.

That followed a U.N. report in February that said North Korea was relying on continued access to the international banking system to flout sanctions imposed in relation to its nuclear program.

Former SWIFT chief executive Leonard Schrank said the only previous occasions he could remember when SWIFT had cut off banks not subject to EU sanctions was when the banks had lost their banking license or a country’s central bank had ceased functioning.

“This is a very, very serious action,” he said, adding it could open SWIFT up to pressure in respect of other countries.

A spokesman for the European Commission denied leaning on SWIFT: “This is a commercial matter for SWIFT. We do not interfere in the business decisions of any such company,” he said.

The U.S. Department of the Treasury and Belgian Foreign Ministry did not respond to requests for comment.

(Editing by Robin Pomeroy)

If You’re A Poor Person In America, Trump’s Budget Is Not For You

(THIS ARTICLE IS COURTESY OF THE WASHINGTON POST)

If you’re a poor person in America, Trump’s budget is not for you

March 16 at 11:40 AM

If you’re a poor person in America, President Trump’s budget proposal is not for you.

Trump has unveiled a budget that would slash or abolish programs that have provided low-income Americans with help on virtually all fronts, including affordable housing, banking, weatherizing homes, job training, paying home heating oil bills, and obtaining legal counsel in civil matters.

During the presidential campaign last year, Trump vowed that the solution to poverty was giving poor people incentives to work. But most of the proposed cuts in his budget target programs designed to help the working poor, as well as those who are jobless, cope.

And many of them carry out their missions by disbursing money to the states, which establish their own criteria.

“This is a budget that pulled the rug out from working families and hurts the very people who President Trump promised to stand up for in rural America and in small towns,” said Melissa Boteach, vice president of the poverty to prosperity program at the Center for American Progress, a liberal think tank in Washington.

The White House budget cuts will fall hardest on the rural and small town communities that Trump won, where one in three people are living paycheck to paycheck — a rate that is 24 percent higher than in urban counties, according to a new analysis by the center.

The budget proposes housing “reforms” that add up to more than $6 billion in cuts while promising to continue assisting the nation’s 4.5 million low-income households. If enacted, the proposed budget would result in the most severe cut to the Department of Housing and Urban Development since the early 1980s, according to the National Low Income Housing Coalition.

Trump’s budget plan, by the numbers

President Trump just released his budget plan for the next fiscal year, which proposes some big changes in government spending. Here’s a look at what agencies are helped and hurt by the proposal. (Video: Jenny Starrs/Photo: Jabin Botsford/The Washington Post)

It would also eliminate the U.S. Interagency Council on Homelessness, which coordinates the federal response to homelessness across 19 federal agencies.

The administration’s reforms include eliminating funding for a $3 billion Community Development Block Grant program, one of the longest continuously run HUD programs that’s been in existence since 1974.

The program provides cities with money to address a range of community development needs such as affordable housing, rehabilitating homes in neighborhoods hardest hit by foreclosures, and preventing or eliminating slums and community blight. It also provides funding for Meals on Wheels, a national nonprofit that delivers food to homebound seniors.

Robert Rector, a senior fellow who focuses on welfare at the Heritage Foundation, a conservative Washington-based think tank, calls the community block grants a “slush fund for urban government.”

The White House touts its cuts to what the administration characterizes as “a number of lower priority programs” as a way to “promote fiscal responsibility.” In actuality, it guts federal funding for affordable housing and kicks the financial responsibility of those programs to states and local governments.

Gone would be $35 million in funding for well-known programs such as Habitat for Humanity and Youth Build USA, fair housing planning, and homeless assistance, among other housing help for needy Americans.

Other targets include funding for neighborhood development and a home-buying program through which low-income individuals help build their own homes. Trump also plans to cut the Home Investment Partnership Program, the largest federal grant to state and local governments that is designed to create affordable housing.

“There is no coordinated plan for how to fulfill the same mission. Saying states, local governments and philanthropy are going to help is just passing the buck,” said a HUD official who is not authorized to speak to the media.

The official said workers at the agency Thursday morning were feeling “demoralized” and “worried.”

“This is just a tough, tough time,” the official said. “HUD is no different from any other domestic agency in just feeling as though these cuts are all very arbitrary and unnecessary.”

Poor people need not lean on community banks for financial help, either, because Trump plans to eliminate the $210 million now dedicated toward Community Development Financial Institutions. The program, administered through the Treasury Department, invests in community banks that provide loans and financial services to people living in some of the most distressed communities of the country.

“Cutting that program would be nothing short of a disaster, and the ripple effect would be felt in urban areas and some rural areas all over America,” said Michael A. Grant, president of the National Bankers Association, a lobbying group for black-owned banks.

The administration would also eliminate the Energy Department’s weatherization assistance program, which dates back to 1976 when Gerald Ford was president. Since then, it has provided states with grants that have helped insulate the homes of about 7 million families, using low-cost techniques that have large payoffs, saving money for those families and curtailing U.S. energy consumption. It has also helped establish weatherization job training centers in states such as Utah and New York.

Also on the chopping block: the Low Income Home Energy Assistance Program, known widely by its acronym LIHEAP. This program, part of the Health and Human Services budget, helps homeowners cover monthly energy costs, or repair broken or inefficient furnaces and air conditioners. The program is usually underfunded; LIHEAP says that on average, only about 20 percent of the households that qualify for assistance receive benefits before the money runs out. Congress sometimes adds funding during emergencies or energy shortages when costs spike.

Trump’s proposed budget would eliminate the Community Services Block Grant, a $715 million program within HHS that funds more than 1,000 local anti-poverty organizations around the country. The organizations provide services ranging from job training to food assistance to more than 16 million people in 3,000 counties. The grants also help communities respond quickly to natural disasters, plant closures and other economic shifts.

Without the grants, there would be little coordination between faith groups, local governments, private companies and nonprofits in addressing the needs of the poor — “just a few unconnected programs that don’t have nearly the impact they have now,” said David Bradley, who founded the National Community Action Foundation and wrote the legislation behind the grants in the early ’80s.

Bradley, though, is “absolutely confident” that Congress will reject the proposal.

“This is the work of a radical right that goes hard after anti-poverty programs,” he said.

The Trump budget would also target the Legal Services Corp., an independent agency that provided $343 million to 134 legal aid organizations for the poor who are tangled up in cases of wrongful eviction, custody disputes, child support or domestic violence.

Legal Services was launched as part of President Lyndon B. Johnson’s war on poverty with the support of the American Bar Association led by Lewis F. Powell Jr., who later served on the Supreme Court. President Richard Nixon later created a free-standing corporation to administer legal aid funds.

“Here each day the old, the unemployed, the underprivileged, and the largely forgotten people of our Nation may seek help,” Nixon wrote in a 1971 message to Congress. “Perhaps it is an eviction, a marital conflict, repossession of a car, or misunderstanding over a welfare check — each problem may have a legal solution. These are small claims in the Nation’s eye, but they loom large in the hearts and lives of poor Americans.”

In 2015, Legal Services offices closed 755,774 cases — more than 100 for every lawyer and paralegal employed. About 70 percent of its clients are women, and the majority of its clients are white and between the ages of 36 and 59. The program provides lawyers only to people earning no more than 125 percent of the federal poverty guideline, which is currently $15,075 for an individual and $30,750 for a family of four.

“We have a legal system that was created by lawyers for lawyers and assumes you have a lawyer,” said James J. Sandman, president of Legal Services Corp. “If you’re a tenant facing eviction and you’re up against a landlord who has a lawyer, if you’re the victim of domestic violence from someone who has a lawyer, you are not playing on a level field. Legal aid is about fairness in the justice system.”

Alaska’s rural poor get hit by the budget proposal, too, despite having two Republican senators. The Agriculture budget would eliminate the Denali Commission, designed to deliver services to remote, rural communities in Alaska, including Native Americans. The commission, established in 1998, contributes to the construction of health-care facilities, water and sewer systems, power generation and communication systems.

The budget would also zero out funds to help native Alaskan villages obtain access to clean drinking water and modern sewage systems.

Cuts to the Agriculture budget also eliminate the Appalachian Regional Commission and the Delta Regional Authority that encourage economic growth in distressed rural communities. And while the budget allocates $6.2 billion to “serve all projected participants” in the Special Supplemental Nutrition Program for Women, Infants and Children, that is $150 million less than USDA had budgeted.

The White House proposed shrinking Job Corps, a program administered by the Labor Department that provides education and job training to more than 60,000 young people and disadvantaged youth. The proposal called for closing centers that do a “poor job” of preparing students for the workforce, but did not elaborate on how many of the 125 centers nationwide would be targeted.

Job Corps, which was created in 1965 as part of President Johnson’s anti-poverty agenda, helps young adults between the ages of 16 and 24 earn high school diplomas and receive vocational training.

The program faced scrutiny several years ago for going over budget and has been forced to freeze enrollment multiple times since 2011 because of the monetary shortfalls. In 2013, a report from the Office of Inspector General found that the budgetary missteps were caused by inaccurate cost estimates and inconsistent monitoring of actual costs. But since then, the program has taken several steps to keep better track of costs and payments.

The Trump administration would also ax the Senior Community Service Employment Program, which aims to help low-income job seekers age 55 and up find work by pairing them with nonprofit organizations and public agencies. The loss of the program could serve as another setback for older Americans who are still struggling to find steady work after the Great Recession.

The unemployment rate for workers 55-plus was 3.4 percent in February, according to the most recent jobs report. But the rate rises to 7.1 percent if workers with part-time jobs who want to be working full-time, and those who have given up on the job search within the past year, are included, according the Schwartz Center for Economic Policy Analysis at the New School.

The goal of the senior employment program is to help participants find permanent work by providing them with training and job experience. Workers are assigned part-time jobs and paid the minimum wage, with the hope that the experience can help them find jobs that are not subsidized by the government. In its budget proposal, the Trump administration called the approach “ineffective” because up to one-third of participants do not complete the program. Of those who do finish, about half succeed in finding more permanent jobs.

Not everyone, though, believes the cuts will be a disaster for the poor.

Rector, of the Heritage Foundation, said the cuts cannot be evaluated in isolation when they represent less than 1 percent of the $1.1 trillion the government spent on more than 80 poverty programs last year.

“The basic line from the left is ‘this program alone is standing between the poor and destitution,’” Rector said. “We have a very large welfare state, and there is waste in that welfare state. It’s important to prune the waste and make these programs much more effective.”

Jonnelle Marte and Caitlin Dewey contributed to this article.

Read more on the budget: 

Trump Promises 1 Trillion Boost In Infrastructure Spending Then Cuts 13% From Transportation Dept

(THIS ARTICLE IS COURTESY OF ‘THE HILL’ NEWS IN D.C.)

Trump budget proposes 13 percent cut to Transportation Dept

The department’s funding would be cut by 13 percent, to $16.2 billion, according to the proposal released early Thursday.

“The Budget request reflects a streamlined DOT that is focused on performing vital Federal safety oversight functions and investing in nationally and regionally significant transportation infrastructure projects,” the budget document says.

“The Budget reduces or eliminates programs that are either inefficient, duplicative of other Federal efforts, or that involve activities that are better delivered by States, localities, or the private sector.”
The budget limits funding for the Federal Transit Administration’s Capital Investment program, eliminates funding for the Essential Air Service program and ends federal support for long-distance Amtrak trains.

The blueprint also eliminates funding for the Transportation Investment Generating Economic Recovery (TIGER) grant program, which was set up by the Obama administration’s 2009 economic stimulus package to provide an extra injection of cash for surface transportation projects.

The grants are appropriated by Congress every year but were never authorized. The proposal estimates that scrapping the program would save $499 million annually.

TIGER grants are a popular funding tool among cities and states. Transportation Secretary Elaine Chao expressed support for TIGER grants and the Transportation Infrastructure Finance and Innovation Act loan program during her confirmation hearing.

But the program has drawn the ire of Republicans, who have sought to eliminate or reduce the grants in previous spending bills.
“If [TIGER grants] were to be cut, then it’s big time trouble,” Sen. Bill Nelson (D-Fla.), ranking member on the Commerce, Science and Transportation Committee, told The Hill last week.

“Department of Transportation TIGER grants are something that are considered essential to rehabbing our infrastructure.”

Sen. Susan Collins (R-Maine), who chairs the Senate Appropriations transportation subcommittee, has promised to protect the grants in any spending bill.

Trump vowed as a candidate and after winning the White House to improve the nation’s infrastructure, calling for repairing U.S. roads, bridges and airports.

“Crumbling infrastructure will be replaced with new roads, bridges, tunnels, airports and railways gleaming across our beautiful land,” Trump said during a joint address to Congress last month.

“To launch our national rebuilding, I will be asking the Congress to approve legislation that produces a $1 trillion investment in the infrastructure of the United States — financed through both public and private capital — creating millions of new jobs.”
This report was updated at 10:16 a.m.

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