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Capital Journal
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Good morning from the WSJ's Washington bureau. Here's the latest on the president's plans to declare a national emergency, U.S.-China trade talks and more. We'll be back on Tuesday after the President's Day holiday.
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Trump's Day: President Trump signs the spending package that Congress passed yesterday, and is scheduled to speak from the Rose Garden in the morning. He is headed to Florida for the President's Day weekend.
Trade Talks: The U.S. and China inched toward a broad agreement aimed at defusing their market-rattling trade tensions. Progress in trade talks have propped up stocks this morning.
Car Tariffs: American car buyers are facing sticker shock. A Commerce Department report due to the president by Sunday could recommend 20% levies on imported cars and imported car parts.
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PHOTO: GREGORY BULL/ASSOCIATED PRESS
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Mr. Trump plans to sign the spending bill passed by Congress and then declare a national emergency to seek border-wall funding, report Rebecca Ballhaus, Kristina Peterson and Natalie Andrews. The move ends the suspense over a possible shutdown but kicks off a new fight.
Declaring an emergency could potentially enable Mr. Trump to shift either military-construction or U.S. Army Corps of Engineers funding to build more border barriers. Democrats said they would challenge any efforts to move money around without congressional approval.
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The $333 billion package of spending bills includes $1.38 billion in funding for 55 new miles of physical barriers.
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Mr. Trump had asked for $5.7 billion for the wall.
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Many questions remain unanswered over a national-emergency declaration, including how it could be challenged.
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The Wall, Mile by Mile: The extension of the border barrier could take the total length of the barriers beyond 700 miles. Here’s a review from Louise Radnofsky of what barriers have been built and what new construction is expected in coming years.
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On Trump Declaration, Democrats Have Reasons to Wait
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President Trump's plan to declare a national emergency to provide more money for border barriers was quickly criticized by lawmakers in both parties on Thursday.
But any Congressional action opposing the national emergency is unlikely to come in the immediate future.
For one thing, Congress has a scheduled recess next week. The protracted dispute on funding the government has already cut into the time lawmakers have been able to spend in their districts this Congress. House Democratic leaders are not likely to scale that time back further. Next week will be an important opportunity for the newly-elected House Democrats to build the relationships essential to winning re-election.
Democrats also may have another reason to wait.
If President Trump does declare a national emergency—rather than pursue another type of executive action—House Democrats will have the opportunity to pursue a resolution that would terminate the declaration. Under the law governing national emergencies, the Senate would have to vote on the resolution and it could pass with a simple majority.
Several Republican senators have made no secret of their antipathy about a national emergency declaration, and some may vote in favor of a resolution terminating the declaration.
Democrats may attempt to increase the number of defections from Senate Republican by trying to build public opposition to the idea of the national emergency. Several groups have vowed to challenge the declaration in court, and the emergency declaration could become increasingly unpopular over time.
During the shutdown, Democrats bet that the public would primarily blame the president for the shutdown and waited until he reopened the government. If public discontent were to similarly simmer about a national emergency declaration, Republicans may feel more pressure to vote in favor of a resolution disapproving of the emergency declaration.
At the same time, the national emergency declaration—depending on its scope—could also fade from public view given enough time, leaving Republicans less compelled to rebel against the president.
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The Senate confirmed William Barr as attorney general in a 54-45 vote on Thursday. PHOTO: YURI GRIPAS/REUTERS
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William Barr, a veteran of corporate and Washington legal circles, has been sworn in as attorney general. Wrestling with whether to release the findings of the probe into Russia's interference in the 2016 election will likely be among his first tasks, Sadie Gurman reports.
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Ex-Deputy FBI Director Andrew McCabe said he approved probes into Mr. Trump two days after James Comey's firing. In an interview with CBS’s “60 Minutes,” he alleged that Deputy Attorney General Rod Rosenstein considered invoking the 25th Amendment to remove Mr. Trump from office, report Byron Tau, Sadie Gurman and Aruna Viswanatha.
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The Justice Department disputed Mr. McCabe’s account.
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“I was very concerned that I was able to put the Russia case on absolutely solid ground.”
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— Andrew McCabe, former deputy director of the FBI
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Chinese and U.S. trade negotiators concluded weeklong talks in Beijing, making some progress toward a memorandum of understanding that could serve as the basis for a deal that President Trump and Chinese leader Xi Jinping could later finalize at a summit, report Lingling Wei and Bob Davis.
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China is counting on promises of big purchases of semiconductors and other U.S. goods to ease trade tensions, reports Lingling Wei.
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Meanwhile, appetite is growing in Congress to claw back authority from the executive branch and play a greater role in U.S. trade policy.
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The U.S. campaign to get European allies to give up telecom gear made by Chinese companies has been a tough sell, Stu Woo reports. Executives from Europe’s biggest cellular and internet providers say that Huawei offers superior hardware, often at lower prices, so a ban could mean Europe falls behind other countries that use Huawei in the 5G rollout.
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A Chinese-born scientist—now a naturalized U.S. citizen—was arrested on charges of trying to steal trade secrets, with the intent to set up a competing venture in China and win a reward from a Chinese government-backed program, report Kate O’Keeffe and Aruna Viswanatha.
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Why the 2020 Field Is Incomplete Until Biden Decides
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The Democratic presidential field for the 2020 election is taking off with remarkable speed. But the shape of it isn't really known because we don't know if Joe Biden will announce a bid yet.
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As many as 20 Democratic presidential contenders could qualify for the first two televised primary debates. The Democratic National Committee said the candidates will need to achieve at least 1% in a series of polls and show an ability to raise money online, Ken Thomas reports.
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The pro-Israel lobby group known as Aipac occupies a unique space in Washington's influence industry. Here's an in-depth look from Julie Bykowicz and Natalie Andrews at the lobby, which has drawn the scrutiny of several new progressive lawmakers.
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Washington’s Israel lobby, led by Aipac, differs from many other foreign-nation influence groups in that it is fueled by American donors and activists while also hiring professional lobbyists.
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Aipac raises more than $100 million a year, which it spends on lobbying politicians and sending members of Congress on trips to Israel.
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Much of the money is channeled through a related nonprofit group to pay for congressional trips to Israel that cost an average of $10,000 per attendee, according to a review of congressional travel records.
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Trump senior adviser Jared Kushner said that a show of unity among Israeli and Arab officials at the conference made him feel “optimistic” about prospects for peace in the Middle East, according to officials.
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Retail sales declined in December at the fastest pace since 2009, a worrying sign for economic growth as shoppers reined in spending at the close of the year, Harriet Torry reports. Every major retail category aside from motor vehicles and building materials posted sales declines.
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Mark Calabria, Mr. Trump's pick to lead the Federal Housing Finance Agency, said he would preserve the 30-year mortgage, a product he has criticized in the past, Andrew Ackerman reports. He told lawmakers his goal is to carry out the intent of Congress, not his vision.
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The world’s tax collectors have been gunning for Silicon Valley. Now they’re trying to figure out how to divide up the spoils, report Sam Schechner, Paul Hannon and Richard Rubin. The OECD is seeking public input on proposals to determine where digital companies' profits should be allocated, and therefore which countries get to tax them.
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A prominent critic once said executive action on immigration was unconstitutional and could lead to the president’s impeachment—but on that occasion the critic was Trump and the president was Obama. (CNN)
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The Trump Organization said it is scrapping plans for two new hotel chains, partly because of the hostile political environment. (AP)
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Russia appears to be making over history with an Afghan war narrative that repackages its defeat as a patriotic victory. (Washington Post)
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This newsletter is a production of the WSJ Washington bureau. Our newsletter editors are Tim Hanrahan, Kate Milani, Troy McCullough and Daniel Nasaw. Send feedback to capitaljournal@wsj.com.
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