Overnight Finance: Dems explore lawsuit against Trump | Full-court press for Trump tax plan | Clock ticks down to spending deadline

Democrats exploring lawsuit against Trump: Senate Democrats are exploring a lawsuit against President Trump on the grounds that his vast business empire has created conflicts of interest that violate the Constitution.

The effort is being led by Sen. Richard Blumenthal (D-Conn.), who has had preliminary discussions with several senators about the idea.

Sen. Ben Cardin (D-Md.) confirmed Blumenthal has pitched the idea of a lawsuit, but stressed that no decision has been made.

“I’m yielding to him on the legal issues. I’m not a constitutional scholar on standing, so if he can figure out a way to do it, I’m rooting for him,” he said.

Sen. Dianne Feinstein (D-Calif.), the ranking member of the Judiciary Committee, said her committee colleague Blumenthal “is leading an effort, asking each one of us to contribute an amount of money for a court case.”

“We’re looking at that,” Feinstein told constituents at a recent town hall event. “The hope is that there will be 41 of us that will be on that court case.”

The Hill’s Jordain Carney has more: http://bit.ly/2pnlRUn

McConnell: Senate will pass short-term funding bill to avoid shutdown: Senate Majority Leader Mitch McConnell (R-Ky.) said Thursday that the Senate will pass a short-term funding bill in order to avoid a government shutdown this week.

“The House has introduced a short-term funding bill that we expect to pass before Friday night’s deadline so that a final agreement can be drafted and shared with members for their review prior to its consideration next week,” McConnell said from the Senate floor. 

On Wednesday night, Rep. Rodney Frelinghuysen (R-N.J.), the chairman of the House Appropriations Committee, introduced the one-week bill to fund the government through May 5. 

Lawmakers have until Friday night to pass the short-term funding bill and prevent a shutdown. Here’s more from The Hill’s Jordain Carney: http://bit.ly/2pqWhQr.

But hold on… Dems issue shutdown threat over ObamaCare repeal vote: House Democrats will oppose a short-term spending bill if Republican leaders attempt to expedite an ObamaCare repeal bill this week, Rep. Steny Hoyer (D-Md.) warned Thursday.

Hoyer, the Democratic whip, spoke with House Majority Leader Kevin McCarthy (R-Calif.) Thursday morning to warn him of the Democrats’ position.

The threat is significant because GOP leaders will likely need Democratic votes to pass a short-term spending bill in the face of opposition from conservatives historically opposed to government funding bills.

“If Republicans announce their intention to bring their harmful TrumpCare bill to the House Floor tomorrow or Saturday, I will oppose a one-week Continuing Resolution and will advise House Democrats to oppose it as well,” Hoyer said in an email. The Hill’s Mike Lillis reports: http://bit.ly/2pqLaHa.

The GOP health bill, though, may already be on life support: The tide is quickly turning against the new ObamaCare repeal legislation.

At least 21 Republicans have said they would vote “no” on the revised GOP healthcare bill negotiated by centrist Rep. Tom MacArthur (R-N.J.) and conservative Rep. Mark Meadows (R-N.C.).

Those no votes include Reps. Patrick Meehan (Pa.), Ryan Costello (Pa.), Barbara Comstock (R-Va.), Jaime Herrera Beutler (Wash.) and John Katko (N.Y.), all centrists who had reservations about the earlier ObamaCare repeal bill that was pulled from a floor vote because of a lack of GOP support.

It’s unclear how dozens of other Republicans would vote on the new bill, but the number of Republicans opposed or leaning against the bill is enough to raise real questions about whether it can be passed by the House in its current form. The Hill’s Scott Wong has more here: http://bit.ly/2qkbeRC

And click here for The Hill’s full Whip List on the revised bill: http://bit.ly/2pmYpIX

Ryan downplays shutdown threat: Speaker Paul Ryan (R-Wis.) downplayed House Democrats’ threat to oppose a short-term spending bill if the GOP rushes a vote on legislation to replace ObamaCare.

Ryan expressed confidence Thursday that the weeklong measure to keep the government running would pass, but he nonetheless blamed Democrats for tensions over the possible shutdown.

“I would be shocked that they would want to see a government shutdown,” Ryan said of Democrats at a Capitol news conference.

“The reason this government funding bill is not ready is Democrats are dragging their feet,” he added. The Hill’s Cristina Marcos fills us in: http://bit.ly/2pr0MKZ.

Happy Thursday and welcome to Overnight Finance, where we’re heading toward the deadline to fund the government. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

Tonight’s highlights include the likelihood of a government shutdown, the fallout from Trump’s tax plan and the growing trade tensions between the U.S. and Canada.

See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.

Schumer: Spending deal coming ‘very soon’: Senate Democratic Leader Charles Schumer (N.Y.) says White House and congressional negotiators are close to a funding deal to avoid a government shutdown.

“Over the last 24 hours, we’ve made a lot of good progress toward an agreement,” Schumer said Thursday. “There are some sticking points that remain, but I’m optimistic that we can come up with an agreement very soon.”

He said the final product will be something both sides can be proud of that helps “keep us safe at home and adequately fund the programs that our middle-class families rely on.” Here’s more from Alexander Bolton: http://bit.ly/2pqNeyO.

Full court press for Trump tax plan: The Trump administration on Thursday began a full-court press aimed at generating momentum for President Trump’s tax reform plan.

Treasury Secretary Steven Mnuchin took the lead on the public relations blitz, appearing on the morning news shows on CBS, NBC and ABC.

He stressed that the administration’s goal is to cut taxes for the middle class and make businesses more competitive.

“This is about telling the American public what the president’s principles are, which are all about economic growth, jobs, jobs, jobs,” he told ABC News.

Mnuchin also said it’s too early to estimate a cost to the proposal and that it would be paid for through a combination of economic growth and eliminating tax breaks for special interests.

The Trump administration also made efforts to rally support from influential conservatives. Mnuchin and White House economic adviser Gary Cohn on Thursday met with groups such as Americans for Prosperity (AFP), a group backed by the Republican mega-donors Charles and David Koch.

The Hill’s Naomi Jagoda has the details: http://bit.ly/2p8UajR

WH saw no chance for bipartisan tax deal: The White House left sweeteners for Democrats out of its tax reform outline because it doesn’t believe they would support it either way, a senior administration official said Thursday.

“I don’t think we have a chance of doing a bipartisan bill,” said the official, who requested anonymity to discuss internal thinking.

The comments were a striking declaration; White Houses typically don’t write off the opposite party this early in the push for major initiatives, especially not ones as complicated as tax reform. 

The Hill’s Jordan Fabian has more: http://bit.ly/2qdtTlx

Trump tax plan prompts GOP fears about deficit: President Trump’s sweeping proposal to cut corporate and business tax rates is raising GOP concerns about blowing up the deficit.

While most Republicans favor cutting taxes, worries that the proposal will spike the deficit are already leading to concerns it could cost Trump votes from his own party.

“Anything that completely spikes the ball with regard to deficits going forward I think will be problematic within the Congress,” said Rep. Mark Sanford (R-S.C.). The Hill’s Alexander Bolton reports: http://bit.ly/2pqYMCk.

Treasury secretary praises GOP Dodd-Frank rewrite, but doesn’t endorse it: Treasury Secretary Steven Mnuchin on Thursday praised a sweeping Republican rewrite of the Dodd-Frank Act without explicitly endorsing it as the GOP administration and lawmakers work toward rolling back post-recession financial regulation.

Mnuchin said Thursday that he welcomed the introduction of the CHOICE Act, House Financial Services Committee Chairman Jeb Hensarling’s (R-Texas) massive bill to reshape how the federal government regulates the financial system.

“The existing regulatory system is limiting, not stimulating our economy,” Mnuchin said in a statement. “I applaud the steady commitment and leadership that Chairman Hensarling and his colleagues have provided on these issues.” http://bit.ly/2pqZWxH.

Trump tax plan to trigger lobbying frenzy: The Trump administration’s release of a tax reform plan is setting off a lobbying frenzy that could be unlike anything seen in Washington since the passage of ObamaCare.

The one-page White House outline sets down significant markers for the tax reform debate, offering sweeping parameters for changing the tax code for both individuals and businesses.

That’s where the lobbyists come in, and The Hill’s Megan R. Wilson tells us what to watch: http://bit.ly/2pqWgfp.

Trump tells Mexico, Canada he won’t terminate NAFTA ‘at this time’: President Trump on Wednesday agreed not to pull out of the North American Free Trade Agreement “at this time” during phone calls with the leaders of Canada and Mexico, according to the White House. 

Trump spoke with Mexican President Enrique Peña Nieto and Canadian Prime Minister Justin Trudeau to assure them that instead he would pursue a renegotiation of the landmark trade pact between their three nations. 

“President Trump agreed not to terminate NAFTA at this time and the leaders agreed to proceed swiftly, according to their required internal procedures, to enable the renegotiation of the NAFTA deal to the benefit of all three countries,” according to a White House account of the calls. 

Trump’s calls came just hours after it emerged that his administration was weighing an executive order announcing the president’s intent to withdraw from NAFTA, which he has repeatedly bashed as a “disaster for our country.”  The Hill’s Jordan Fabian and Vicki Needham explain: http://bit.ly/2pr70ds.

Mnuchin can’t guarantee middle class won’t pay more under tax reform: Treasury Secretary Steven Mnuchin on Thursday said the administration is committed to ensuring that the middle class doesn’t pay more under tax reform but added that he can’t “make any guarantees.”

“I can’t make any guarantees until this thing is done and on the president’s desk,” Mnuchin said during an interview on ABC’s “Good Morning America.” “But I can tell you, that’s our No. 1 objective in this.”

The details of taxes are “very complicated,” he said, adding that the administration is “committed to working quickly and getting this done.” http://bit.ly/2pqUyum.

Cohn: People ‘wasting time’ calling for Trump’s tax returns: President Trump’s top economic adviser maintained Thursday that people calling for the real estate mogul to release his personal income tax returns are “wasting time.”

“I can’t even understand my own taxes and what I pay and my tax returns are, you know, two feet high up the table,” Gary Cohn, the director of the National Economic Council, said on Fox News’ “Special Report with Bret Baier.”

“How am I gonna understand his tax returns? You know, I think people are spending too much time wasting – wasting time on that issue,” added Cohn, who previously served as president and chief operating officer at Goldman Sachs.

Instead, Cohn said people should “waste time” creating jobs and bolstering the U.S. economy.

The Hill’s Max Greenwood has more on Cohn here: http://bit.ly/2oR5Gxv

GOP chairman: Trump and House Republicans have ’80 percent common ground’ on taxes: House Ways and Means Committee Chairman Kevin Brady (R-Texas) said early Thursday that the tax plans from President Trump and House Republicans have “80 percent common ground.”

“It’s clear we want to work together with the White House and the Senate to come together with one plan,” he said on CNBC.

Brady said differences on rates for individuals and businesses stem from lawmakers and administration officials wanting “to go as low as we can for job creators.” http://bit.ly/2pqQslU.

Dems hammer Trump for ‘broken promises’ in first 100 days: Democrats are hammering President Trump ahead of his administration’s 100-day mark, saying he has repeatedly broken his campaign promises. 

Democrats on the Joint Economic Committee — led by ranking member Sen. Martin Heinrich (N.M.) — released two reports Thursday knocking Trump over his “broken promises” to rural communities and working-class families. 

The Democrats argue Trump has hurt families by undermining innovation, rolling back worker protections and making it harder to save for retirement. 

“By tilting the playing field further towards corporate interests, President Trump is stacking the deck against America’s working families,” said the report, a copy of which was obtained in advance by The Hill. http://bit.ly/2prdHfF.

Hopes fade for using tax reform on infrastructure: Hope is fading on Capitol Hill that tax reform will be used to pay for President Trump’s $1 trillion infrastructure package.

The administration released a sweeping tax plan on Wednesday that does not include money to revitalize U.S. roads, bridges, airports or other public works.

The one-page proposal includes repatriation, or taxing corporate earnings stashed overseas at a lower rate when it returns to the U.S., but does not indicate what the revenue should be spent on.

Proponents of using repatriation as a funding tool for infrastructure are worried about the message that the White House is sending with the tax plan. The Hill’s Melanie Zanona explains: http://bit.ly/2pr2P1m.

Trump tax plan would hit blue states hardest: President Trump’s plan to overhaul the federal tax code threatens to fall disproportionately on residents of liberal-leaning states, a short-term boost for state governments that could turn into a long-term drag.

Most states have tied their tax codes closely to the federal code. Since the federal income tax was first levied in 1913, taxpayers have been able to deduct the state and local taxes they pay from their federal taxable income. Taxpayers who live in states with higher tax rates are able to deduct more from their federal taxes than those who live in states with lower rates

Those deductions cost the federal government more than $60 billion a year, according to the nonpartisan Tax Policy Center. Here’s The Hill’s Reid Wilson with more: http://bit.ly/2pqV6jZ.

Write us with tips, suggestions and news: slane@thehill.com, vneedham@thehill.com, and njagoda@thehill.com. Follow us on Twitter: @SylvanLane,  @VickofTheHill and @NJagoda.