Thursday, May 1 | By Alexis Simendinger & Kristina Karisch |
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| ▪ Trump feels economy's sting ▪ "Failure": Dems on Trump's first 100 days ▪ Supreme Court open to religious charter school ▪ Ukraine, U.S. sign rare minerals deal |
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©️ Associated Press | Damian Dovarganes |
Trump rejects bruising economic report card |
President Trump is pleading with Americans for more time to prove the U.S. economy's moribund performance since January is the work of his predecessor. "Things are happening that are amazing, but I would not say it if it weren't fact," the president assured members of his Cabinet on Wednesday during a two-hour meeting to mark 100 days since his inauguration. The Hill's Niall Stanage in The Memo: Trump's Cabinet, facing sinking polls, lashes out. Gross domestic product, a measure of economic health, shrank in the first quarter by 0.3 percent, according to a Wednesday Commerce Department report. That compared with the economy's 2.4 percent expansion as former President Biden prepared to leave office. The news, as Trump sought to celebrate his 100-day achievements, stoked recession fears amid the ongoing tariff impasse with China and other trading partners. The administration says it is negotiating new deals with multiple countries, especially in Asia, but has not been specific. During Trump's initial months, consumer spending slowed sharply to 1.8 percent growth from 4 percent in October-December last year, according to new data. Federal government spending plunged 5.1 percent in the first quarter. The economic numbers coincide with angst measured in Trump's sagging poll numbers, which he disputes. Nevertheless, interviews with consumers, farmers, corporate CEOs and small businesses underscore sudden caution about spending. It is no secret that Trump's tariff policies are unpopular with the public, most economists and allies. And Republican lawmakers concede they're increasingly nervous about their political prospects next year, reports The Hill's Alexander Bolton. "I don't think there is any doubt that the tariffs and trade war has injected a lot of uncertainty and instability into the economy. I think investment, what I'm hearing from businesses, is drying up. That's not good," Sen. Ron Johnson (R-Wis.) said. Trump says his tariff policy is a transition move aimed at rebalancing trade while the administration seeks individual agreements with South Korea, Japan and India, as well as China. "There's a very good chance we're gonna make a deal, but it has to be on our terms," Trump said Wednesday as he phoned in for an interview with NewsNation during a town hall event moderated by Chris Cuomo. ▪ CNBC: White House adviser on China Peter Navarro said an agreement with India is possible soon. ▪ Bloomberg News: The European Union next week is expected to propose trade changes to negotiate with the U.S. At the same time, the EU also is moving forward with plans to retaliate over U.S. tariffs. Stocks in April closed down to finish one of the wildest months in recent memory for financial markets. After tumbling Wednesday morning, the S&P 500 and the Dow Jones Industrial Average gradually clawed back losses and pushed into the green to close out the day. Trump began Wednesday repeating his explanation that the sagging economy is a "transition" voters knew to expect when they cast their ballots. "[W]e have to get rid of the Biden 'Overhang,'" he wrote on Truth Social. "This will take a while, has NOTHING TO DO WITH TARIFFS, only that he left us with bad numbers, but when the boom begins, it will be like no other. BE PATIENT!!!" The president told ABC News on Tuesday that his presidency is just beginning and is not entirely responsible for the latest economic data. "I've been here for three months," he explained. "I just got here." ▪ The Hill: Five takeaways from a flurry of economic data. ▪ The Hill: Senate GOP leaders succeeded in protecting Trump's tariffs Wednesday, although three Republicans (Kentucky Sen. Rand Paul, Maine Sen. Susan Collins and Alaska Sen. Lisa Murkowski) joined Democrats to register tariff opposition. |
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Smart Take
with Blake Burman |
| One of President Trump's goals is to revitalize U.S. manufacturing, generating American jobs in the process. If he's successful, he would reverse decades of job declines in the sector. Jay Timmons, president and CEO of the National Association of Manufacturers, tells me Trump's goal is attainable, but it could be a long-term project. "It's typically three to five years for a large-scale manufacturing operation to come to fruition, and that is, you're talking about a 30-year commitment," Timmons said. "So that's another reason we need permanence when it comes to tax policy and trade policy." The White House continues to tout investments, which it says add up to trillions of dollars. However, large-scale investments could take years to filter throughout the economy. Will the administration have the patience of the American public for that long? |
Burman hosts "The Hill" weeknights, 6p/5c on NewsNation. |
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©️ Associated Press | Mark Schiefelbein |
100 DAYS: Despite being newly buoyed by Trump's steadily sinking approval ratings, Democrats are stubbornly divided over their resistance strategy and path back to power. Dozens of Democratic lawmakers gathered at the Capitol on Wednesday to accuse Trump of spending his first 100 days damaging the economy and democracy with the help of "complicit" congressional Republicans. "Donald Trump's first 100 days can be defined by one big F-word: failure. Failure on the economy, failure on lowering costs, failure on tariffs, failure on foreign policy, failure on preserving democracy, failure on helping middle-class families," Senate Minority Leader Chuck Schumer (D-N.Y.) said Wednesday. The Hill's Julia Manchester and Mike Lillis report liberal Democrats on and off Capitol Hill are stepping up their hard-line opposition to the norm-smashing president, advancing aggressive tactics — backed by the party's progressive base — that now include formal articles of impeachment. But such actions are receiving a cold reception from more moderate lawmakers, who want Democrats to focus on the stark policy differences between the parties on a handful of issues — including health care, financial security and consumer costs — that resonate most deeply with voters. "We cannot be a one-size-fits-all party, especially when dealing with what Donald Trump is doing and the damage he is causing," said one national Democratic operative. "It's important that the Democrats continue to find new ways to fight back." ▪ The Hill: A trio of House Democrats asked to be removed as co-sponsors of a resolution to impeach Trump, a sign that many in the party do not want to go down the path of trying to remove the president from office — at least at the current moment. ▪ Axios: As Democrats grapple with the age of their party leadership, Del. Eleanor Holmes Norton (D-D.C.), 87, is eyeing a run to be the ranking member of the House Oversight and Reform Committee. ▪ The Hill: Trump said during the NewsNation town hall that he'd "love" to see Stephen A. Smith campaign for president. The sports commentator has stirred recent speculation that he may make a 2028 bid. Energy: The Hill's Rachel Frazin breaks down five ways the Trump administration has reshaped energy and environmental policy in his first 100 days. Tech: The world's biggest tech firms have been left scrambling to adjust to the tumultuous first 100 days of Trump's second term, The Hill's Julia Shapero reports, despite their efforts to cozy up to the president and his tech-heavy administration. Congress: Georgia Rep. Brian Jack (R), a longtime Trump ally and former White House political director, was elected to the House last year and is described as "the biggest utility player." The Hill's Mychael Schnell describes the 37-year-old's path to Capitol Hill. The Hill: Cheat sheet: Twelve questions for Rep. Jack. |
- The House will meet at 9 a.m.
- The Senate will convene at 10 a.m.
- The president will participate at 11 a.m. in a National Day of Prayer event in the Rose Garden. He will receive his intelligence briefing. Trump will participate in a swearing-in ceremony at 2 p.m. for U.S. Ambassador to Italy Tilman Fertitta, owner of the Houston Rockets. Trump will travel to the University of Alabama in Tuscaloosa, Ala., to speak at a commencement at 7 p.m. The president will depart Alabama for Florida, arriving late tonight.
- The White House daily press briefing is scheduled at 8:30 a.m.
- Secretary of State Marco Rubio will meet at 10 a.m. with French Foreign Minister Jean-Noël Barrot.
- JOIN The Hill's Energy & Environment Summit on May 6, as leaders in government, sustainability and global energy solutions discuss how rapidly changing policies will impact the future of U.S. energy and environmental policy. Key speakers include: Sen. Ed Markey (D-Mass.), Rep. Bob Latta (R-Ohio), former Environmental Protection Agency administrator Christine Todd Whitman and more.
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©️ Associated Press | Mark Schiefelbein |
Supreme Court: Conservatives on the nation's highest court appeared amenable to signing off on the bid to create the nation's first taxpayer-funded religious charter school during oral arguments Wednesday. With Justice Amy Coney Barrett recused, Chief Justice John Roberts emerged as the key swing vote over the effort to establish St. Isidore of Seville Catholic Virtual School in Oklahoma, which has spurred a major constitutional battle over the role of religion in state-funded education. Ultimately, the chief justice analogized the case to the Supreme Court's 2021 ruling that Philadelphia couldn't exclude a religious agency from its foster care system. "We held they couldn't engage in that discrimination," Roberts said. "How is that different from what we have here: an education program, and you want to not allow them to participate with a religious entity." A "DATA-DRIVEN" GOVERNMENT INSIDER: After his first nominee failed to gain confidence among Senate Republicans, Trump chose longtime federal health executive Susan Monarez to lead the Centers for Disease Control and Prevention (CDC). Former colleagues remember her as an effective, collaborative workplace leader who championed data-driven work and diversity. Bringing with her nearly 20 years of federal health policy experience, Monarez has served under four different presidents across numerous offices of the executive branch. Erin Smith, principal at Pont Advisory Group and a former colleague of Monarez at Advanced Research Projects Agency for Health, said Monarez was uniquely equipped to perform the duties and balancing acts required of the job. "When there's a room of people talking about an issue or a problem or a crisis … she's a person you want in the room," Smith said. "Her expertise in intergovernmental workings amongst agencies is probably second to none." The Washington Post: Health and Human Services Secretary Robert F. Kennedy Jr. intends to shift the way vaccines are tested. The agency said the move will increase transparency, but medical experts fear it could limit access to vaccines and undermine the public's trust. |
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©️ Associated Press | Efrem Lukatsky |
UKRAINE: The U.S. and Ukraine on Wednesday signed a comprehensive deal to jointly invest in Ukraine's minerals, raw materials and natural resources that would offer Ukraine some level of long-term U.S. support. "This agreement signals clearly to Russia that the Trump Administration is committed to a peace process centered on a free, sovereign, and prosperous Ukraine over the long term," Treasury Secretary Scott Bessent said in a statement. The deal is a long time coming; U.S. Trump indicated in February that he wanted access to Ukraine's rare earth materials as a condition for continued U.S. support in the war, but talks stalled after a tense Oval Office meeting between U.S. and Ukrainian leaders. Reaching an agreement since then has proven difficult and strained relations between Washington and Kyiv. Trump during the NewsNation town hall spoke about his private meeting with Ukrainian President Volodymyr Zelensky in Rome over the weekend. "I told him it's a very good thing if we can produce a deal and you sign it, because Russia is much stronger," Trump said. He criticized Biden's handling of Ukraine funding, claiming, "Europe loans the money and Biden handed them all the money with no strings — Europe gets their money back, we get nothing." ▪ The Washington Post: What are Ukraine's critical minerals actually worth? No one knows. ▪ Reuters: The U.S. on Wednesday imposed sanctions on entities it accused of being involved in the illicit trade of Iranian petroleum and petrochemicals ahead of a new round of U.S.-Iran negotiations on Saturday. ▪ The Wall Street Journal: Sen. Lindsey Graham (R-S.C.) is pushing ahead with his plan to impose new sanctions on Russia and tariffs on countries that purchase Russian oil, gas and uranium. GAZA: The American-Israeli families of hostages held by Hamas in Gaza want Trump to put pressure on Israeli Prime Minister Benjamin Netanyahu to immediately bring home their loved ones, who have been held for almost 600 days in captivity. They say Trump has a unique opportunity to use a mid-May trip to Saudi Arabia to break through nearly two months of stalemate in negotiations, using the potential for diplomatic ties between Riyadh and Jerusalem to advance a deal to end the war with Hamas and bring the hostages home. "I believe the president is a very tough person, and he should be tough with the enemies, and with the friends as well — and the friends, I'm talking about Israel," said Adi Alexander, whose 21-year-old son Edan is one of five Americans held hostage by Hamas. ▪ The Washington Post: Since breaking the ceasefire, Israeli forces have declared about 70 percent of Gaza either a military "red zone" or under evacuation. ▪ CNN: Gaza edges closer to famine as Israel's total aid blockade nears its third month. ▪ NPR: The U.S. told the International Court of Justice Wednesday that Israel must provide aid to Gaza, but the country does not have to work with the U.N. agency for Palestinian refugees. ▪ The New York Times: The Trump Organization has agreed to a new golf course and real estate deal in the Middle East that involves a Qatari government-owned firm. The announcement comes two weeks before the president is set to travel to Saudi Arabia, Qatar and the United Arab Emirates. |
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- Fight like our democracy depends on it, by The New York Times editorial board.
- The Trump administration is hurting veteran-owned small businesses, by Leon Panetta, opinion contributor, The Hill.
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©️ Associated Press | Ben Curtis |
Take Our Morning Report Quiz And finally … ✈️ It's Thursday, which means it's time for this week's Morning Report Quiz! Inspired by 100-day takeoffs and landings, we're eager for some smart guesses about Air Force One. Be sure to email your responses to asimendinger@thehill.com and kkarisch@thehill.com — please add "Quiz" to your subject line. Winners who submit correct answers will enjoy some richly deserved newsletter fame on Friday. The president is eager for delivery of the newest model of Air Force One, which has been delayed. Who did he dispatch to speak with Boeing about the plane's timetable, according to news reports in March? 1. Defense Secretary Pete Hegseth
2. Acting Secretary of the Air Force Gary Ashworth
3. U.S. special envoy Steve Witkoff
4. Billionaire Elon Musk Who was the first sitting president to travel in a jet dubbed "Air Force One"? 1. Teddy Roosevelt
2. Franklin D. Roosevelt
3. Harry Truman
4. Dwight D. Eisenhower Air Force One planes sport an iconic color scheme approved by President Kennedy after detailed design consultations. How has the hue often been described? 1. Midnight blue
2. Jackie Kennedy blue
3. Caribbean blue
4. Sapphire blue Air Force One flies with a high-tech escape pod in case of emergencies. 1. True
2. False |
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