Overnight Finance: Lawmakers play let’s make a deal

9 DAYS LEFT: With nine days to go before the government runs out of money, party leaders are negotiating in earnest over an omnibus funding bill to keep the lights on. The conversation, per usual, is over policy riders.

House Democrats rejected an initial offer, calling it rife with “poison pill” riders aimed at rolling back financial rules, environmental protections, and a House-passed bill tightening screening for Syrian refugees. Dems are putting together a counter-offer, and the horse trading is on.

{mosads}Appropriators are still hashing matters out, and with dollar amounts effectively set by the last budget agreement, the policy talk is the ballgame. Talks are underway to come up with another anti-terror amendment to replace the Syria language, per The Hill’s own Mike Lillis and Scott Wong: http://bit.ly/1IpIkHj

At the same time, Minority Leader Nancy Pelosi (D-Calif.) and Speaker Paul Ryan (R-Wis.) chatted Monday night, and leadership is likely going to need to help clear any final weeds snarling the deal. And just in case you forgot, the government will shut down after Dec. 11 without new funding legislation signed by the president. Tick, tick, tick.

THIS IS OVERNIGHT FINANCE: I’m Peter Schroeder, your host, guide and newsletter guru. Shoot me a line at pschroeder@digital-staging.thehill.com, or tweet it @peteschroeder.

WHITE HOUSE BANGS THE SHUTDOWN GONG: The Obama administration got into the mix Wednesday, as Press Secretary Josh Earnest accused Republicans of “whistling past the graveyard of a government shutdown.” From Jordan Fabian:

Earnest slammed GOP lawmakers for what he said is an effort to “lard the bill up with ideological riders” in order “to compensate for their pretty sorry legislative record thus far this year.”

The spokesman said measures that Republicans are attempting to add to the end-of-year spending bill would benefit big polluters and major financial institutions. 

“None of this is part of how the budget process is supposed to work,” he added. 

Earnest said he does “not envision a scenario” where Obama would sign a short-term continuing resolution that lasts longer than one or two days to allow more time for negotiations, if lawmakers miss the Dec. 11 deadline. 

Speaker Paul Ryan’s (R-Wis.) office rejected the White House’s assertion that it’s unusual to add riders to a major spending bill. http://bit.ly/1SxEufP

IN OTHER LOOSE ENDS…

DON’T FORGET EXTENDERS: While funding haggling continues, there’s another set of big fiscal talks underway on tax extenders. There’s talk of an accord that would go beyond a one or two-year extension of many favored tax breaks, making some favored by D’s and R’s respectively permanent. But lead players are still striking a cautious tone. Senate Finance Committee Chairman Orrin Hatch (R-Utah) shot down talk of a finished product Wednesday, saying there was “no deal” and members were “continuing discussions.”

One area that could see a change is a repeal of the “Cadillac Tax” in ObamaCare, per Peter Sullivan:

Lawmakers are making a late push to repeal or scale back ObamaCare’s “Cadillac Tax” by the end of the year, eying inclusion of changes in a broader tax package. 

But lawmakers in both parties say the missing piece is hearing from the White House, as it is unclear whether President Obama would veto the whole package, jeopardizing other tax breaks that lawmakers are eager to pass.

Democratic leaders in Congress, concerned about the effect of the tax on workers’ health coverage, have been looking to change or repeal the tax, but the White House defends it.  

Sen. Dick Durbin (Ill.), the Senate’s No. 2 Democrat, said Tuesday that he hopes to make changes to the tax, and that those modifications could be included in the end of year package of tax breaks known as “tax extenders.” http://bit.ly/1QfxiFM

SPEAKING OF EXTENDERS: The House Republican Study Committee threw in its two cents Wednesday, per our own Naomi Jagoda:

The conservative Republican Study Committee (RSC) on Wednesday laid out its priorities for extending expired tax credits, including limits on ObamaCare and two common low-income tax breaks.

The priority list comes as Democrats and Republicans in Congress and the White House are working on a deal that would make some of the provisions permanent.

Permanency for the expanded Earned Income Tax Credit and the additional Child Tax Credit are among the top priorities of congressional Democrats and the White House in any extenders deal. Key provisions of the Earned Income and Child credits, which help low-income working families, are set to expire at the end of 2017.

But the RSC only wants them renewed if there are “significant improvements to the programs’ verification and oversight,” Rep. Bill Flores (R-Texas), the RSC chairman, said in a news release. http://bit.ly/1HGS5kv

NO DRAMA ON HIGHWAYS: After conferees were able to hammer out a five-year highway bill, it looks like it’s open road for the legislation.

The House looks set to vote on the $305 billion measure tomorrow, which will also bring the Export-Import Bank back from the dead: http://bit.ly/1Q1oK6K

And the White House says it’s ready to sign it if it hits the president’s desk: http://bit.ly/1YIPxqd

YELLEN GIVES A STRONG NUDGE ON DECEMBER RATE HIKE: Per moi:

Federal Reserve Chairwoman Janet Yellen cautioned Wednesday that a delay in raising interest rates could drive the U.S. into a recession.

Speaking in Washington, Yellen did little to dissuade a common perception that the Fed is on the cusp of its first interest rate hike in nearly a decade. Arguing that the economy has steadily improved and appears poised to continue on that trajectory, Yellen highlighted the risks of inaction from the Fed.

She contended that if the Fed waits too long to raise rates, the central bank might have to catch up to an overheating economy by raising rates rapidly, which comes with heavy risks. http://bit.ly/1RnMnpK

SHHHH, IT’S A SECRET: Bill sponsors said Wednesday that a measure aimed at protecting the trade secrets of U.S. businesses is teed up for Senate passage.

Sens. Orrin Hatch (R-Utah) and Chris Coons (D-Del) said that a Senate Judiciary Committee hearing shows that there is overwhelming, bipartisan support, as well as the backing of key industry leaders, for a measure that will combat the loss of hundreds of billions of dollars every year in the theft of corporate trade secrets.

They argued that the bill is not only ready for committee approval but also a vote on the Senate floor. 

“Both Republicans and Democrats can agree that this bill is a win for American property rights and innovation. Why wouldn’t we move this bill now?” Hatch said in a statement. 

The bill is backed by nine members of the Senate Judiciary Committee, including: Sens. Dick Durbin (D-Ill.), Jeff Flake (R-Ariz.), Thom Tillis (R-N.C.), Richard Blumenthal (D-Conn.), Amy Klobuchar (D-Minn.), David Perdue (R-Ga.) and Jeff Sessions (R-Ala.).

“Today’s hearing demonstrated that we need this bill now more than ever as more and more American companies are losing jobs and revenue because they lack the ability to defend their trade secrets under federal civil law,” Coons said.

“I urge my colleagues to listen to the testimony from today if they have any doubt of the need for this bill that has strong support across a diverse array of industries, and I’m determined to work with Senator Hatch to see this bill across the finish line,” he said. 

CONFEREES AHOY: Speaker Paul Ryan (R-Wis.) on Wednesday appointed three Republican lawmakers to serve on the conference committee for a customs and enforcement bill that is the final piece of the trade legislation, including trade promotion authority, that moved through Congress this summer. 

The three are: Reps. Kevin Brady (Texas), chairman of the House Ways and Means Committee; Pat Tiberi (Ohio) and Dave Reichert (Wash.), the new chairman of the trade subcommittee. 

TARGET PAYS UP FOR DATA BREACH: Banks can expect $39 million from the retail giant after a massive data breach exposed millions of credit cards. Katie Bo Williams:

Target Corp. on Wednesday reached a proposed $39 million settlement to resolve claims by banks seeking to recoup money spent reimbursing the fraudulent charges that resulted from the retailer’s 2013 data breach.

The settlement “sets an important precedent that financial institutions should not always have to bear the burden of extensive costs related to merchant data breaches over which they have no control,” co-lead plaintiffs’ counsel Charles Zimmerman said.

The highly publicized breach during the busy holiday season exposed up to 40 million credit cards and compromised other personal information of as many as 70 million people. http://bit.ly/1NIbnIF

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