karoline leavitt

WASHINGTON — Washington is barreling toward a government shutdown Tuesday night, with few signs of an off-ramp as Democrats and Republicans dig in for a fight over government spending.

Democratic leadership on Capitol Hill is insisting on an extension of Affordable Care Act tax credits as part of a package to fund the government. At least seven Democratic votes are needed in the Senate to pass a seven-week stopgap bill that cleared the House last week.

But Republican lawmakers and the White House have dismissed the proposal, with senior officials in the Trump administration threatening to use unique legal authorities granted during a government shutdown to conduct yet more mass firings of federal workers.

Bipartisan congressional leadership met with President Trump at the White House on Monday afternoon in a last-minute effort to avert the crisis. But neither side exited the meeting with expectations of a breakthrough. On the contrary, Republican leaders in the House told the GOP caucus to plan to return to work next week and said they would hold a news conference on Wednesday anticipating the government’s closure.

“We are not going to support a partisan Republican spending bill that continues to gut the healthcare of everyday Americans, period, full stop,” House Minority Leader Hakeem Jeffries (D-N.Y.) said Monday.

House Minority Leader Hakeem Jeffries and Senate Minority Leader Chuck Schumer talk to reporters outside the White House.

(Alex Brandon / Associated Press)

Vice President JD Vance said he thought the country was “headed to a shutdown,” labeling Democratic calls for healthcare tax credits an “absurd” demand that amounts to an “excuse for shutting down the people’s government.”

“You don’t use your policy disagreements as leverage to not pay our troops,” Vance said. “That’s exactly what they’re proposing out there.”

When the government shuts down, the law requires all nonessential government services to cease, requiring most federal workers to go on furlough or work without pay. Essential services — such as national security functions and air traffic control — are not affected.

Ahead of the meeting, Trump told reporters he hoped Democrats would agree to “keeping our country open,” before proceeding to criticize their proposals.

“They’re going to have to do some things, because their ideas are not very good ones,” Trump said. “They’re very bad for our country. So we’ll see how that works out.”

But Senate Minority Leader Chuck Schumer (D-N.Y.) said he thought his message was beginning to resonate with the president after their meeting Monday afternoon.

“We have very large differences, on healthcare, and on their ability to undo whatever budget we agree to, through rescissions and through impoundment,” Schumer said. “I think for the first time, the president heard our objections and heard why we needed a bipartisan bill. Their bill has not one iota of Democratic input. That is never how we’ve done this before.”

“We’ve made to the president some proposals,” Schumer added. “Ultimately, he’s a decision-maker.”

Schumer faced widespread ridicule from within his party in March after reversing course during the last showdown, choosing then to support the Trump administration’s continuing resolution to fund the government at the height of an aggressive purge of the federal workforce.

At that point, Schumer feared a shutdown could accelerate the firings. But Schumer is now defiant, despite the renewed threat of layoffs, after the White House Office of Management and Budget circulated a memo last week directing federal agencies to relieve workers on discretionary projects that lose funding after Oct. 1.

“This is an attempt at intimidation,” Schumer said in response to the memo. “Donald Trump has been firing federal workers since day one — not to govern, but to scare. This is nothing new and has nothing to do with funding the government.”

Vice President JD Vance talks to reporters as House Speaker Mike Johnson and Senate Majority Leader John Thune listen.

(Alex Brandon / Associated Press)

Still, Schumer began gauging his caucus Monday afternoon on the prospects of a continuing resolution that would in effect delay a shutdown by a week, briefly extending government funding in order to continue negotiations.

Betting markets had chances of a shutdown soaring above 70% by the end of the day on Monday.

Speaking to Fox News on Monday, Karoline Leavitt, the White House press secretary, said the president’s position was “the reasonable and commonsense thing to do,” calling on Democrats to continue funding to the military and its veterans.

“All we are asking for is a commonsense, clean funding resolution — a continuing resolution — to keep the government open,” Leavitt said. “This is a bill that keeps the government funded at the exact same levels as today, just adjusted for inflation.”

“So there is zero good reason for the Democrats to vote against this,” she added. “The president is giving Democrat leadership one last chance to be reasonable.”

But Jeffries dismissed Leavitt as “divorced from reality” in a podcast interview.

“In what world will any rational American conclude, after we’ve been lectured throughout the year about this so-called mandate that the Republican Party has in this country, and their complete control of government in Washington, that because Democrats are unwilling to gut the healthcare of the American people as part of the Republican healthcare crisis, that it’s us shutting the government down?” Jeffries said.

“Nobody’s buying that,” he continued, “outside of the parts of the MAGA base who basically, seemingly, will buy anything that Donald Trump has to peddle.”

Senate Majority Leader John Thune (R-S.D.) said he would call a vote on funding the government Tuesday afternoon.

“This is purely and simply hostage-taking,” Thune said Monday. Whether it passes or fails, he said, is “up to the Democrats.”

WASHINGTON — President Trump will order the establishment of a White House task force on Tuesday focused on security for the Olympics Games in Los Angeles in 2028.

Karoline Leavitt, the White House press secretary, said the president plans on creating the task force by executive order on Tuesday, telling The Times that Trump “considers it a great honor to oversee this global sporting spectacle.”

“During his first term, President Trump was instrumental in securing America’s bid to host the 2028 Summer Olympics in Los Angeles,” Leavitt said. “Sports is one of President Trump’s greatest passions, and his athletic expertise, combined with his unmatched hospitality experience will make these Olympic events the most exciting and memorable in history.”

It is unclear whether the executive order will provide relief as city leaders and the Los Angeles Organizing Committee for the 2028 Olympic and Paralympic Games, the privately funded nonprofit organization known as LA28 that is planning the Games, negotiate key issues including security costs.

The executive order follows on Trump’s signature legislation, referred to by the president as the “Big Beautiful Bill,” securing $1 billion for security, planning and other costs for the L.A. Games.

Casey Wasserman, chairperson and president of LA28, thanked the Trump administration in a statement “for their leadership and unwavering support as we prepare to deliver the largest and most ambitious Olympic and Paralympic Games ever hosted in the United States.”

“Since we secured this historic opportunity in 2017, President Trump has consistently recognized the magnitude of our responsibility in welcoming the world to Los Angeles,” Wasserman said. “The creation of this task force marks an important step forward in our planning efforts and reflects our shared commitment to delivering not just the biggest, but the greatest Games the world has ever seen in the summer of 2028.”

Los Angeles leaders are in negotiations with LA28 for the use of the city’s police, traffic officers and other employees during the Olympics and Paralympics.

Security, trash removal, traffic control, paramedics and more will be needed during the 17-day Olympics and the two-week Paralympics the following month.

Under the 2021 Games agreement between LA28 and the city, LA28 must reimburse the city for any services that go beyond what the city would provide on a normal day. The two parties must agree by Oct. 1, 2025, on “enhanced services” — additional city services needed for the Games, beyond that normal level — and determine rates, repayment timelines, audit rights and other processes.

Overtime for Los Angeles police officers, and any other major expenses, would be acutely felt by a city government that recently closed a nearly $1-billion budget deficit, in part by slowing police hiring.

Times staff writer Dakota Smith contributed to this report.

WASHINGTON — President Trump’s decision to hike tariffs once again on some of America’s largest trading partners rattled markets on Monday, dashing hopes on Wall Street that the White House would cut any significant trade deals, as it had promised, by the middle of this week.

In a series of letters sent to foreign leaders, and promptly posted by the president to his social media platform, Trump said the new rates amount to the cost of doing business with “the extraordinary Economy of the United States, The Number One Market in the World, by far.” Under the new policy, Japan, South Korea, Malaysia and Kazakhstan will face 25% import duties starting Aug. 1, while goods from Laos and Myanmar will face a 40% tariff, according to the letters.

South Africa’s president also received a letter, stating goods from the country imported to the United States would face duties of 30%.

Markets recoiled at the news, with the Dow Jones industrial average dropping 1.4%, the Nasdaq falling 1.2% and the Standard & Poor’s 500 sinking 1.2%.

The move essentially returns U.S. tariff rates on those countries to those Trump first announced on April 2, on what he called Liberation Day, but that he ultimately abandoned over widespread Wall Street panic that began spooking the bond market.

Trump hit pause on the crisis by announcing a 90-day suspension of the higher tariff rates, a period set to expire Wednesday. But the White House press secretary, Karoline Leavitt, said Monday that Trump would extend the deadline to the end of the month.

Several senior officials in the Trump administration had promised a slew of trade deals would follow the April episode — “we’re going to run 90 deals in 90 days,” said Peter Navarro, the president’s top trade advisor. Yet the administration has failed to secure a single detailed trade deal, instead announcing three frameworks of understanding with the United Kingdom, China and Vietnam.

“The president is taking a very deliberate approach to correcting this wrong of many decades, of many past presidents — I think he should be commended for the time and the effort that he’s putting into this,” Leavitt told reporters at a press briefing.

“The fact that he has announced a framework with China, a trade deal with the U.K., a trade deal with Vietnam and many others to come in just six months is truly historic, and it’s a testament to this president and his trade team,” she added.

In his letters to foreign leaders, Trump warned that any effort by their governments to retaliate would be met with escalation.

“If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge,” he wrote.

Leavitt said more letters would be sent in the coming days. She also stated that additional trade deals could be announced soon. “We are close,” she said.

Scott Bessent, the Treasury secretary, told CNBC in an interview that his inbox was “full last night with a lot of new offers” for trade deals ahead of the now-defunct Wednesday deadline.

“We’ve had a lot of people change their tune in terms of negotiations,” Bessent said. “So it’s going to be a busy couple of days.”

The stock market reaction to Trump’s Liberation Day tariffs, which hiked rates on countries all around the world, was an historic rout, eviscerating trillions of dollars in value, with the Standard & Poor’s index bleeding 12% in just four days.

Markets recovered within weeks, after Trump reversed course, with the S&P hitting a record high on July 3.

WASHINGTON — The governor and the president are talking past each other.

The two men, despite their politics and ambition, have worked together before, through devastating fires and a pandemic. But as immigration raids roil Los Angeles, President Trump and Gov. Gavin Newsom cannot even agree on how they left their last conversation, late on Friday evening on the East Coast, as protests picked up around the city.

Aides to Trump told The Times he issued a clear warning: “Get the police in gear.” His patience would last less than 24 hours before he chose a historic path, federalizing the National Guard against the wishes of state and local officials.

The governor, on the other hand, told MSNBC the account is a lie. In their 40-minute call, not once did the president raise the prospect of wresting control over the National Guard from state and local officials.

They have not spoken since, a White House official said.

Trump went even further on Monday, raising the specter of Newsom’s arrest and supplementing the National Guard operation with a historic deployment of active-duty U.S. Marines.

The troop deployment is yet another extraordinary effort to quell simmering demonstrations across Los Angeles, some of which have turned violent, in protest of flash raids conducted by Immigration and Customs Enforcement officers in recent days.

‘Subjecting himself to arrest’

Newsom’s government said Monday it would sue the Trump administration over the deployment and issued scathing criticism of Trump’s leadership, calling his Defense secretary a “joke” and the president “unhinged.” But the president and his top advisers responded with an especially pointed threat, suggesting the governor could be arrested for obstruction.

“It is a basic principle in this country that if you break the law, you will face a consequence for that,” White House press secretary Karoline Leavitt told The Times in an interview. “So if the governor obstructs federal enforcement, or breaks federal laws, then he is subjecting himself to arrest.”

Earlier in the day, Tom Homan, the president’s so-called border czar, said that no one is above the law and that anyone — including the governor — who obstructs immigration enforcement would be subject to charges.

“I would do it if I were Tom,” Trump said, pursing his lips as he appeared to consider the question as he was speaking to reporters on Monday. “I think it’s great.”

“He’s done a terrible job,” Trump continued. “I like Gavin Newsom. He’s a nice guy. But he’s grossly incompetent. Everybody knows.”

The White House is not actively discussing or planning Newsom’s arrest. But Newsom took the threat seriously, vehemently decrying Trump’s remarks as the mark of an authoritarian.

“The President of the United States just called for the arrest of a sitting Governor. This is a day I hoped I would never see in America. I don’t care if you’re a Democrat or a Republican this is a line we cannot cross as a nation — this is an unmistakable step toward authoritarianism,” Newsom wrote on X.

“It would truly be unprecedented to arrest a governor over a difference in policy between the federal government and a state,” UC Berkeley law school dean Erwin Chemerinsky said Monday. “Even when Southern governors were obstructing desegregation orders, presidents did not try to have them arrested.”

A backfiring effort at deterrence

Leavitt said that Trump’s initial decision to deploy the Guard was “with the expectation that the deployment of the National Guard would hopefully prevent and deter some of this violence.”

“He told the governor to get it under control and watched again for another full day, 24 hours, where it got worse,” Leavitt said. “The assaults against federal law enforcement upticked, the violence grew, and the president took bold action on Saturday evening to protect federal detention spaces and federal buildings and federal personnel.”

The opposite occurred. The worst violence yet took place on Sunday, with some rioters torching and hurling concrete at police cars, hours after National Guard troops had arrived in L.A. County.

The protests had been largely peaceful throughout Friday and Saturday, with isolated instances of violent activity. Leavitt said that Newsom and Karen Bass, the mayor of Los Angeles, have “handicapped” the Los Angeles Police Department, “who are trying to do their jobs.”

Local leaders “have refused to allow the local police department to work alongside the feds to enforce our nation’s immigration laws, and to detain and arrest violent criminals who are on the streets of Los Angeles,” she said.

“As for the local law enforcement,” she added, “the president has the utmost respect for the Los Angeles Police Department.”

‘All options on the table’

Leavitt, in a phone call on Monday afternoon, said she would not get ahead of Trump on whether he will invoke the Insurrection Act, a law that allows the president to suspend Posse Comitatus, which prohibits the military from engaging in local law enforcement.

But she took note that, on Monday, the president referred to some of the rioters as insurrectionists, potentially laying the groundwork for an invocation of the law.

“The president is wisely keeping all options on the table, and will do what is necessary to restore law and order in California,” she said. “Federal immigration enforcement operations will continue in the city of Los Angeles, which has been completely overrun by illegal alien criminals that pose a public safety risk and need to be removed from the city.”

The president’s order, directing 2,000 National Guard troops to protect federal buildings in the city, allows for a 60-day deployment. Leavitt would not say how long the operation might last, but suggested it would continue until violence at the protests ends.

“I don’t want to get ahead of the president on any decisions or timelines,” she said. “I can tell you the White House is 100% focused on this. The president wants to solve the problem. And that means creating an environment where citizens, if they wish, are given the space and the right to peacefully protest.”

“And these violent disruptors and insurrectionists, as the president has called them, are not only doing a disservice to law-abiding citizens, but to those who wish to peacefully protest. That’s a fundamental right this administration will always support and protect.”

Wilner reported from Washington, Wick from Los Angeles.