GDP Growth Revised Up as House Cracks Down on Sanctuary Cities
June 29, 2017
The House is expected to pass a bill that would cut funding to cities who do not comply with ICE detainer requests. There is also confusion about how the limited-scope travel ban will be enforced, now that the Supreme Court has allowed it. GDP growth has been revised up and the labor market continues to be strong.
- House Bill would punish “sanctuary cities” that fail to cooperate with detainer requests. The “No Sanctuary for Criminals Act” would pull funding for cities who do not comply with the requests by the Immigration and Customs Enforcement agency. Many cities who do not currently comply claim that doing so could be unconstitutional if the individual is not actually an immigrant and that it undermines trust in police. The bill is a much harsher form of persuasion than the Obama administration’s. The Obama White House also sought to cut down on the “sanctuary city” phenomenon. The bill is likely to pass in the House but would need Democratic support in the Senate, which is unlikely. [WSJ]
- Travel ban to take effect following Supreme Court decision. The Court allowed for those without a “bona fide relationship” with a person or entity in the United States to be barred from entry into the country under the President’s temporary executive order. Many immigrant, refugees, and related groups are urging the State Department, Department of Homeland Security, and other related government agencies to define what a “bona fide relationship” is defined as. Individuals without such a relationship from Iran, Libya, Syria, Somalia, Sudan, and Yemen will be affected. The lack of clarity is causing problems for consulates, embassies, and airports abroad. [Reuters]
Economic Indicators & News
- United State Q1 GDP growth revised up to 1.4%. Last month, the Department of Commerce estimated that GDP grew at a rate of 1.2%. The change is due to higher than expected consumer spending and exports. Q1 tends to be the weakest performing quarter of the year. The White House is still aiming for 3% economic growth, which appears to be increasingly unlikely. The last time the U.S. economy grew at that pace was in the 1990s. [Reuters]
- U.S. jobless claims just barely over estimates. 244,000 Americans filed for unemployment benefits last week, only 4,000 above the estimate. These numbers have spent 121 weeks below 300,000, which is a typical benchmark for a healthy labor market. [CNBC]