I’ve just returned tonight from a quick weekend trip to Prince Edward Island, a delightfully remote corner of Canada, but all the talk while I was there was of the USA.Like Americans, Canadians have been riveted by the incredible destructive power of Hurricane Katrina, and particularly the predictions that New Orleans might finally be wiped out by catastrophic flooding. (Since New Orleans is my favorite place, I was frantic yesterday and today to get the news, and only after sitting through a long CNN feature about the impact on oil refinery capacity at the Charlottetown airport did it become apparent that massive loss of human life did not occur in the Crescent City, though Biloxi was less fortunate).But the news item that competed with Katrina across much of Canada involved America in a far less sympathetic story. Canadians are absolutely livid about a cavalier rejection by the Bush administration of a NAFTA-sponsored arbitration decision declaring U.S. duties on Canadian softwood lumber illegal under the agreement. In fact, under heavy public pressure, Prime Minister Paul Martin is reportedly thinking about calling a special session of Parliament to take retaliatory measures against U.S. exports.This hasn’t exactly been big news in the States, but Canada is America’s biggest trading partner, and the longstanding U.S.-Canada partnership on trade policy is the linchpin not only of NAFTA, but of hemispheric free trade efforts generally. And the long-simmering dispute over Canadian lumber is now leading a variety of voices north of the border to call for a reconsideration of that partnership, and of NAFTA itself.It didn’t help that Bush’s ambassador in Ottawa, David Wilkins, responded to outrage over the U.S. decision to ignore the lumber ruling by lecturing Canadians to eschew “emotional tirades.” Bush himself, of course, is vastly less popular in Canada than his predecessor, and Wilkins’ comments reinforced every available perception about the administration’s general disdain for the opinions of long-time allies.This incident also shines a bright light on the Bush administration’s generally bumbling and inconsistent stewardship of trade policy, which follows few clear principles other than solicitude for domestic business interests with political clout.In any event, it was fascinating to spend a few days among our neighbors whose love-hate relationship with the U.S. was illustrated by their worries over a hot wind from the south roaring into the Gulf Coast, and their willingness to launch a cold wind from the north towards Washington.
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Editor’s Corner
By Ed Kilgore
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January 30: Revocation of Funding Freeze a Promising Sign for Democrats
I was very closely watching the saga of OMB’s disastrous effort to freeze funding for a vast number of federal programs, and wrote about why it was actually revoked at New York.
This week the Trump administration set off chaos nationwide when it temporarily “paused” all federal grants and loans pending a review of which programs comply with Donald Trump’s policy edicts. The order came down in an unexpected memo issued by the Office of Management and Budget on Monday.
Now OMB has rescinded the memo without comment just as suddenly, less than a day after its implementation was halted by a federal judge. Adding to the pervasive confusion, White House Press Secretary Karoline Leavitt immediately insisted on Wednesday that the funding freeze was still on because Trump’s executive orders on DEI and other prohibited policies remained in place. But there’s no way this actually gets implemented without someone, somewhere, identifying exactly what’s being frozen. So for the moment, it’s safe to say the funding freeze is off.
Why did Team Trump back off this particular initiative so quickly? It’s easy to say the administration was responding to D.C. district judge Loren AliKhan’s injunction halting the freeze. But then again, the administration (and particularly OMB director nominee Russell Vought) has been spoiling for a court fight over the constitutionality of the Impoundment Control Act that the proposed freeze so obviously violated. Surely something else was wrong with the freeze, aside from the incredible degree of chaos associated with its rollout, requiring multiple clarifications of which agencies and programs it affected (which may have been a feature rather than a bug to the initiative’s government-hating designers). According to the New York Times, the original OMB memo, despite its unprecedented nature and sweeping scope, wasn’t even vetted by senior White House officials like alleged policy overlord Stephen Miller.
Democrats have been quick to claim that they helped generate a public backlash to the funding freeze that forced the administration to reverse direction, as Punchbowl News explained even before the OMB memo was rescinded:
“A Monday night memo from the Office of Management and Budget ordering a freeze in federal grant and loan programs sent congressional Republicans scrambling and helped Democrats rally behind a clear anti-Trump message. Senate Minority Leader Chuck Schumer blasted Trump as ‘lawless, destructive, cruel.’
“D.C. senator Patty Murray, the top Democrat on the Appropriations Committee, warned that thousands of federal programs could be impacted, including veterans, law enforcement and firefighters, suicide hotlines, military aid to foreign allies, and more …
“During a Senate Democratic Caucus lunch on Tuesday, Schumer urged his colleagues to make the freeze “relatable” to their constituents back home, a clear play for the messaging upper hand. Schumer also plans on doing several local TV interviews today.”
In other words, the funding freeze looks like a clear misstep for an administration and a Republican Party that were walking very tall after the 47th president’s first week in office, giving Democrats a rare perceived “win.” More broadly, it suggests that once the real-life implications of Trump’s agenda (including his assaults on federal spending and the “deep state”) are understood, his public support is going to drop like Wile E. Coyote with an anvil in his paws. If that doesn’t bother Trump or his disruptive sidekick, Elon Musk, it could bother some of the GOP members of Congress expected to implement the legislative elements of the MAGA to-do list for 2025.
It’s far too early, however, to imagine that the chaos machine humming along at 1600 Pennsylvania Avenue will fall silent even for a moment. OMB could very well issue a new funding-freeze memo the minute the injunction stopping the original one expires next week. If that doesn’t happen, there could be new presidential executive orders (like the ones that suspended certain foreign-aid programs and energy subsidies) and, eventually, congressional legislation. Democrats and Trump-skeptical Republicans will need to stay on their toes to keep up with this administration’s schemes and its willingness to shatter norms.
It’s true, nonetheless, that the electorate that lifted Trump to the White House for the second time almost surely wasn’t voting to sharply cut, if not terminate, the host of popular federal programs that appeared to be under the gun when OMB issued its funding freeze memo. Sooner or later the malice and the fiscal math that led to this and other efforts to destroy big areas of domestic governance will become hard to deny and impossible to rescind.