Trump supports higher taxes for the rich, but says GOP ‘should probably not do it’ in bill
Photo by Anna Moneymaker/Getty Images
(WASHINGTON) — President Donald Trump offered some mixed messaging as Republicans put the final touches on their tax proposal, saying Friday that he would support raising taxes on the wealthiest Americans to help pay for his sweeping legislative agenda while adding in the same breath his belief that Republicans “should probably not do it.”
“The problem with even a ‘TINY’ tax increase for the RICH, which I and all others would graciously accept in order to help the lower and middle income workers, is that the Radical Left Democrat Lunatics would go around screaming, ‘Read my lips,’ the fabled Quote by George Bush the Elder that is said to have cost him the Election. NO, Ross Perot cost him the Election! In any event, Republicans should probably not do it, but I’m OK if they do!!!” Trump wrote in a post on his social media platform.
White House Press Secretary Karoline Leavitt called Trump’s position on raising taxes for the rich “very honorable” during Friday’s White House press briefing.
“The president himself has said he wouldn’t mind paying a little bit more to help the poor and the middle class and the working class in this country,” Leavitt said. “These negotiations are ongoing on Capitol Hill and the president will weigh in when he feels necessary.”
The ambiguous presidential declaration has thrown negotiators into a frantic scramble — with the House Ways and Means committee expected to mark up their legislation next week.
The inclusion of a tax hike in the “big, beautiful bill” would be a major reversal for House GOP leaders, who have argued that allowing the current tax rates to expire would amount to a tax increase.
“I’m not in favor of raising the tax rates because that’s — our party is the group that stands against that, traditionally,” Speaker Mike Johnson said in an interview on Fox News in late April.
During his acceptance speech at the Republican National Convention in 1992, incumbent President George H.W. Bush uttered the infamous line, “read my lips: no new taxes.” Voters ultimately rejected Bush at the ballot box after he broke his vow and signed legislation crafted by congressional Democrats that increased tax revenues to address the growing budget deficit.
Canada’s Prime Minister Mark Carney/ Artur Widak/NurPhoto via Getty Images
(WASHINGTON) — President Donald Trump and Canada’s Prime Minister Mark Carney meet on Tuesday at the White House for a high-stakes, and possibly tense, meeting amid a tariff trade war between the two neighbors and allies.
The two leaders will greet each other at 11:30 a.m. ET and then hold a bilateral meeting in the Oval Office.
Carney’s visit comes off the heels of his election win to replace Justin Trudeau that was fueled, in part, by his anti-Trump platform.
After his victory, Carney warned Canadians: “Trump is trying to break us so that America can own us. That will never, that will never ever happen.”
Trump, meanwhile, has taken relentless aim at Canada since returning to office in January. He’s threatened to make Canada the 51st state and slapped steep tariffs on the nation, which is one of the United States’ biggest trading partners.
Trump has said he’s “not sure” what the prime minister wants to discuss but added that Canada “wants to make a deal,” while Carney said on Friday that they will focus on “trade pressures and the broader future economic and security relationship.”
“I’m not pretending these discussions will be easy — they won’t proceed in a straight line,” Carney said last week. “There will be ups and downs, zigzags along the way. But as I said in my remarks, I will fight for the best possible deal for Canada. I will only accept what’s in the best interest of Canadians, and I will take as much time as necessary to achieve that.”
The historically friendly relationship between the U.S. and Canada is now on edge. Trump and Carney’s face-to-face meeting in the Oval Office could yield progress on easing tariffs or strain the relationship even further.
One advantage for Carney compared to his predecessor going into this meeting is his lack of history with Trump. Trudeau left his post with a bruised relationship with the president, who Trump repeatedly trolled as “governor” rather than prime minister. The two leaders were unable to work out a tariff deal.
A 25% tariff imposed by Trump remains in place for Canadian goods that are not compliant with the United States-Mexico-Canada Agreement (or USMCA) as well as a 10% tariff on Canadian oil imports and 25% tariff on all cars, auto parts, steel and aluminum.
Canada’s retaliatory action includes a 25% tariff on vehicles imported from the U.S. that are not compliant with USMCA. In March, Canada imposed $21 billion worth of retaliatory tariffs were applied on items like American orange juice, whiskey, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles and certain pulp and paper products.
Canada also has a lot to lose if Trump follows through with threat to impose 100% tariffs on films produced outside the U.S.
The Justice Department on Tuesday unsealed drug trafficking charges against the two leaders of the Mexican drug cartel La Nueva Familia Michoacana Organization (LNFM) and offered up to $8 million for information leading to their arrest.
Brothers Johnny Hurtado Olascoaga and Jose Alfredo Hurtado Olascoaga, are “responsible for the cartel’s resurgence” over the past decade, according to a DOJ official.
“These brothers were charged by a federal grand jury in the Northern District of Georgia with various crimes related to the manufacture, distribution and importation of massive quantities of heroin, cocaine, methamphetamine and fentanyl into the United States,” Michael Herskowitz, chief of the Narcotics Section at the U.S. Attorney’s office in Atlanta, said at a press conference Tuesday.
The Treasury Department also sanctioned the brothers, and the State Department has offered $3 and $5 million rewards for information leading to their arrest. The men are currently in Mexico, officials said.
“It is our hope that these multimillion dollar rewards will encourage people to come forward with what they know about their Olascoaga brothers, both here in the United States and in cities and towns in Mexico, who are most impacted by the cartels violence,” Herskowitz said.
DEA Atlanta Acting Special Agent in Charge Jae Chong told reporters that the foreign terrorist organization designation that the Trump administration has leveled against the cartels has “allowed law enforcement to apply enhanced counterterrorism authorities to drug cartel operations, something we believe that will have a greater impact in the fight to protect our communities.”
“In 24 hours, DEA and our partners have seized over 100 pounds of fentanyl, $320,000 of suspected drug proceeds, guns, and made 22 arrests, 11 of which are illegal criminals,” Chong said.
The fentanyl they seized was enough to kill 3.5 million people, according to Chong.
In a separate indictment, the Justice Department also charged seven individuals with allegedly funneling the proceeds of the cartel’s activity through a business in Georgia.
Agents “analyzed the money service businesses transactions and determined that the cash was wired to Mexico, but was transferred in small increments, as did not raise suspicion by federal regulators during an approximate period of two months, these individuals allegedly laundered over $1 million in drug proceeds smuggled to Mexico,” Herskowitz said.
(WASHINGTON) — Environmental Protection Agency staff members across the country have been told by supervisors they are prohibited from communicating with grantee partners they are supposed to supervise and monitor, according to multiple sources inside the EPA and others working directly with the agency.
And without notice, many nonprofit organizations and other EPA grant recipients have found themselves frozen out of accessing their federal funds without notice or explanation.
“I have never experienced anything like this,” said Melissa Bosworth, who runs a small nonprofit organization based out of Denver that had been administering an EPA award approved by Congress last May for tribal, school and local municipalities in the mountain west.
Nonprofit leaders from across the country with EPA grants and contracts describe weeks of a communication blackout. Bosworth said her local contacts at the EPA’s Region 8 office stopped responding within days of President Donald Trump’s inauguration. She and her partnering organization, Montana State University, noted they reached out repeatedly to their local point of contact but got no response.
ABC News reached out to the EPA’s Region 8 office for comment.
Then, at the end of February, she received formal notice that her grant had been terminated. The purpose of the grant was to help cities, tribes and schools in rural Montana, Wyoming and the Dakotas gain access to federal funding for projects focused on clean drinking water, disaster preparedness, emissions reduction and food security.
The termination notice, reviewed by ABC News, suggested her contract might have been canceled because of the president’s executive order to shutdown diversity, equity and inclusion programs.
“It was about helping fight disparities on behalf of small cities and rural schools,” she said. “So often it is the big universities and big institutions that have the expertise to get funds. I worry the disparity for rural America, tribes and the smallest communities will get worse.”
Bosworth has a son with autism, and her business partner gave birth last month to a baby with severe medical challenges. They both have now been laid off.
“We thought there was a good chance they would try to terminate our contracts, but without any actual communication, we did not have anything formal to fight against,” Bosworth told ABC News. “We did not know what was real, if we could spend money or how to ask questions. I wonder if the ambiguity was part of the strategy.”
While the communication blackout appeared to be sweeping in multiple regional offices and consequential for grant recipients, it did not seem to apply to all EPA staff nationwide.
Even before receiving the termination notice, Bosworth said she struggled to access her EPA grant. She and dozens of other nonprofit leaders from California to Tennessee said they have been frozen out of the government payment system off and on, without explanation or notice.
In an EPA regional office in Philadelphia, staff members described being told in meetings with EPA political appointees based in Washington, D.C., that they are still not permitted to process new awards or even communicate with grant award recipients as late as last week. The edict came despite recent court rulings blocking the administration’s proposed federal funding freeze.
And when local EPA staffers pressed their regional bosses about the communications blackout, those bosses told them to comply because they did not want to risk doing anything to jeopardize their jobs, according to multiple sources.
As part of his work advising agencies to reduce spending and cut staff, Elon Musk and his Department of Government Efficiency have promised transparency and increased oversight over how taxpayer dollars are going out the door. Experts who work in grant management as well as former EPA officials argue the lack of communication will result in the opposite — less transparency and no oversight.
“The preponderance of evidence is that many program officers are under some kind of gag order, making it nearly impossible for them to do their jobs,” one former EPA official under the Biden administration told ABC News. “If you care about abuse in federal spending, this makes no sense and is absurdly hypocritical.”
Typically, EPA staff works closely with nonprofit organizations and local government partners who have been awarded grants, conducting oversight and answering and asking questions about how the government money is being spent.
Rebecca Kaduru, president at Institute for Sustainable Communities, based in Nashville, said she has lost access to the payment system at least once a week for the last month. Her organization had two EPA grants until last month, when one was terminated.
The effective gag order has left nonprofit leaders, local governments and tribes stunned and unsure about how to move forward in spending the EPA grants they were awarded.
Kaduru explained the strain of chaos of the last few months.
“Do I fire staff because I can’t pay payroll? But if I do, I am not compliant with the grant that says I have to have staff and keep our website,” she said on the phone. “It is very high risk for nonprofits.”
On Monday, EPA Administrator Lee Zeldin announced the agency had decided to terminate over 400 contracts with nonprofit organizations around the country.
“Working hand-in-hand with DOGE to rein in wasteful federal spending, EPA has saved more than $2 billion in taxpayer money,” Zeldin wrote in a statement. “It is our commitment at EPA to be exceptional stewards of tax dollars.”
The EPA did not respond to questions about which contracts exactly were canceled or why, but it appeared environmental justice and community change grants were hit particularly hard in this week’s cuts.
Over 100 organizations received community change grants last year, totaling more than $1.6 billion, as part of environmental justice work funded through the bipartisan Infrastructure Reduction Act in 2022. The grants focus on helping low-income, disadvantaged and often rural communities fight air and water pollution, create green spaces and invest in renewable energy and disaster preparation.
On Tuesday, Zeldin also sent an internal memo to all regional administrators saying that the agency planned to eliminate all environmental justice positions and offices immediately.
“With this action, EPA is delivering organizational improvements to the personnel structure that will directly benefit all Americans,” the memo, which ABC News reviewed, said.
Many nonprofit leaders who received termination notices in the last few weeks expressed frustration that they were not given the chance to explain their work and said the savings, in their view, were overblown. The news comes as agency leaders were also told to draft plans with a deadline of this week for further staffing reductions.
In terms of savings, in a recent post, Zeldin claimed he saved taxpayers over $12 million by canceling the contract with Kaduru’s organization, for example. However, in actuality, it was an $8 million grant, with over half of it already spent.
Speaking to a joint session of Congress last week, Trump said his administration wants to focus on pollutants, saying, “Our goal is to get toxins out of our environment, poisons out of our food supply and keep our children healthy and strong.”
Both current career EPA staff as well as nonprofit partners said the cuts and the closure of environmental justice offices will make this work harder.
“I think it is a shame they are not looking into what we do — asking what we actually do,” Kaduru said. “It is a shame because those environmental justice programs in particular are really are good programs, and I think there is an unfortunate misunderstanding about what environmental justice [is].”
