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FORSYTH, Ga. (AP) — Georgia’s governor signed a law Thursday to exempt federal crop insurance and disaster payments following Hurricane Helene damage from Georgia state income taxes, but it could be months more before some federal money starts flowing to farmers in the hardest-hit states.

The U.S. Department of Agriculture published a schedule Wednesday to start disbursing disaster aid, part of a $100 billion package passed by Congress in December.

The September storm cut a swath from Florida’s Big Bend across eastern Georgia and upstate South Carolina before causing historic flooding in western North Carolina and eastern Tennessee.

Helene is the seventh-most expensive disaster in the United States since 1980, causing an estimated $78 billion in damage and 219 deaths.

Officials have estimated that Helene caused billions in property and economic damage to agriculture, including $5.5 billion in Georgia and $4.9 billion in North Carolina.

Federal officials in March began handing out $10 billion designated in the bill for farmers nationwide harmed by low crop prices and high fertilizer prices. But billions more were set aside for farmers harmed by Helene and other natural disasters in 2023 and 2024.

U.S. Agriculture Secretary Brooke Rollins was questioned about the timeframe Tuesday by lawmakers including Democratic U.S. Sen. Jon Ossoff of Georgia. He told Rollins that “Time is of the essence.”

“I’ve seen the devastation firsthand,” Rollins said. “It is heartbreaking to witness it.”

Some farmers have dipped into savings to pay for losses not covered by insurance. Others have unpaid debts from last year, restricting borrowing to plant 2025 crops. A few have sold equipment or land to generate cash.

The schedule shows federal officials will open applications for some aid in stages from May 30 through Sept. 15. But states have to negotiate plans to distribute other aid through block grants. If state and federal officials agree on a plan by May 28, block grants would be finalized by June 13, federal officials said. If agreements can be reached by June 13, they would be finalized by June 30. After that, states must give out the money.

Georgia Agriculture Commissioner Tyler Harper said Thursday that he didn’t know how much money Georgia would get in block grants. He said whether the state made the May 28 deadline “depends on how our negotiations go with USDA over the next couple of weeks.”

Kemp on Thursday signed into law tax breaks for farmers and timber owners harmed by Helene that could be worth nearly $300 million.

“Farmers operate on extremely tight margins, and to rebuild from a storm of this magnitude could be impossible for some to shoulder,” Kemp said at Georgia Forestry Association headquarters in Forsyth, saying Helene was “a storm like no other in out state.”

The tax breaks come on top of $867 million in spending that Georgia lawmakers earlier allotted for Hurricane Helene relief .

The law exempts federal payments to farmers because of Helene from Georgia state income taxes. That could be worth $140 million.

Georgia’s law also lets private timberland owners claim a credit for damaged timber on state income taxes if they replant trees. The timberland tax break could be worth $83 million to $104 million through 2030, estimates show.

Another tax break waives state and local sales taxes on building materials to rebuild chicken houses, barns, and fences.

A fourth program lets counties waive taxes when timber owners cut down trees for 15 months. Any county that waives taxes would refund any taxes collected since Oct. 1. The state could spend $17.4 million to reimburse counties’ lost tax money.

Georgia lawmakers earlier approved $285 million for low-interest loans to farmers and to remove downed trees from private lands so they don’t become a fire hazard. There’s also $25 million in grants to nonprofits that are supposed to go to help individuals.

In South Carolina, Republican legislative leaders are discussing hundreds of millions in Helene relief as part of the state’s budget. North Carolina lawmakers agreed to a $524 million supplemental Helene relief in March, in part to provide more funds for agricultural needs. It was North Carolina’s fourth Helene aid package.

Jeff Amy, The Associated Press


WASHINGTON (AP) — FBI Director Kash Patel pledged Thursday to make the bureau’s mission “work on whatever budget we’re given,” striking a different tone from comments a day earlier in which he called for the agency to be funded at far higher levels than what the Trump administration had proposed.

The 2026 budget proposal released on Friday calls for a funding cut of about $545 million for the FBI as part of what the White House said was a desire to “reform and streamline” the bureau and reduce “non-law enforcement missions that do not align” with the priorities of President Donald Trump

He told lawmakers at a House Appropriations subcommittee hearing on Wednesday that the FBI needs “more than what has been proposed” and “can’t do the mission on those 2011 budget levels.”

But on Thursday, appearing at a separate hearing of the Senate Appropriations Committee, he took a different stance when asked by Democratic Sen. Chris Van Hollen of Maryland about his earlier testimony that the FBI required substantially more money to operate what the Trump budget plan had called for.

“My view is that we agree with this budget as it stands and (will) make it work for the operational necessity of the FBI, and as the head of the FBI, I was simply asking for more funds because I can do more with more money,” he said.

He added that he would “make the mission work on whatever budget we’re given.”

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Eric Tucker, The Associated Press


VICTORIA — A member of an ostrich farming family held back tears as she called on the provincial government to help stop the cull of their 400 birds.

The Canadian Food Inspection Agency ordered the cull in late 2024 after an avian flu outbreak, but family spokesperson Katie Pasitney says the animals living on her parents’ farm in Edgewood, B.C., are “healthy” and “happy” now and pose no risk.

Pasitney says the birds are her family’s livelihood and having to kill them would be catastrophic.

Pasitney is in Victoria meeting provincial officials, including B.C. Agriculture Minister Lana Popham, and is receiving support from three former Conservative MLAs, who are now sitting as independents.

The family and the Canadian Food Inspection Agency are waiting on a Federal Court judge to rule on the fate of the animals.

Peace River North MLA Jordan Kealy acknowledges that the federal government will ultimately decide the fate of the birds, but says the provincial government can help secure a stay of execution by lobbying for an exemption from the rules.

This report by The Canadian Press was first published May 8, 2025.

Wolfgang Depner, The Canadian Press


WASHINGTON (AP) — Senate Democrats have blocked legislation to regulate stablecoins, a form of cryptocurrency, after arguing that the bill needed stronger protections and airing concerns that it could help President Donald Trump enrich himself.

The bill, which would regulate how stablecoin issuers operate in the U.S., had previously won some Democratic support. But it failed 49-48 on a procedural vote Thursday after Democrats said that they needed to see more changes to the legislation before they could back it.

Senate Majority Leader John Thune said that Republicans would work with Democrats if they allowed the bill to move forward, but they refused. All Democrats voted not to bring it up.

The vote is a blow to one of Trump’s top legislative priorities and a setback for the cryptocurrency industry, which spent heavily in last year’s election and has been emboldened to cement its influence in politics and the mainstream financial system. The legislation would aim to create a federal framework to regulate the stablecoin industry, which is currently governed by a patchwork of existing federal and state laws.

Stablecoins are a fast-growing corner of the cryptocurrency industry that have produced enormous profits for some of the major players involved. They offer a buffer from cryptocurrency’s notorious volatility because they are pegged to real-world assets, like U.S. dollars or gold. Typically, that means a single stablecoin is worth $1, making them a much more reliable digital asset to make commercial transactions than other forms of crypto.

While some Democrats agree that regulation is needed, and several voted to move the bill out of committee, Trump’s involvement in the crypto industry has complicated the legislation’s path. Trump launched a meme coin earlier this year that has generated more than $320 million in fees for its creators, according to the blockchain analysis firm Chainalysis. And earlier this week, Trump promoted a dinner he’s set to attend on May 22 that’s open to almost anyone who buys enough of the coins.

Another Trump-family linked crypto venture called World Liberty Financial recently announced that it was issuing its own stablecoin, called USD1. The stablecoin got a huge boost when World Liberty Financial announced last week that an investment fund in the United Arab Emirates would be using $2 billion worth of USD1 to purchase a stake in Binance, the world’s largest cryptocurrency exchange.

Among other proposed changes, Democrats said that elected officials and their families should be barred from owning, controlling or promoting stablecoin business ventures.

“The Senate should not pass a bill that facilitates Trump’s breathtaking corruption and lines his pockets and welcomes other elected officials to do the same,” said Massachusetts Sen. Elizabeth Warren.

A former skeptic turned zealous promotor, Trump has promised to usher in a golden age for the cryptocurrency industry. His administration has already taken many early actions without Congress to boost crypto, including establishing a strategic bitcoin reserve and undoing previously enforcement actions. But Trump needs Congress to get some of his and the deep-pocketed industry’s top priorities passed, including enacting the stablecoin legislation.

The legislation could still move forward if the two parties can come to a deal. Virginia Sen. Mark Warner, a Democrat who has been helping negotiate the legislation, said in a statement after the vote that he would continue to work on it.

“I remain fully committed to getting this right,” Warner said.

A group of nine Democrats, including Warner, said in a release over the weekend that they could not support the legislation until it included stronger provisions on money laundering, foreign issuers and accountability for those who violate it, among other concerns. They did not mention Trump.

“We recognize that the absence of regulation leaves consumers unprotected and vulnerable to predatory practices,” the Democrats said.

Thune, the Republican leader, questioned Democrats’ motives, speculating that they just wanted to deny Trump a bipartisan win.

“It makes you wonder if this is about the bill at all,” he said of their opposition.

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Mary Clare Jalonick And Alan Suderman, The Associated Press


OTTAWA — Prime Minister Mark Carney has vowed to invest in Canada’s foreign service, arguing that diplomacy is becoming increasingly important in a dangerous world.

A union official representing foreign service officers and a senator who once served Canada overseas say they’re optimistic about Carney’s plans but they want to see the details.

The Liberal election platform said a Carney government would send “more Canadian diplomats and officials abroad” to expand trade and “restore Canadian leadership.”

It also said the Liberals would issue a “new, full foreign policy” and launch a complementary national security review.

A spokesperson for the Prime Minister’s Office said no additional details were available.

Carney is expected to name his new cabinet later this month.

Pamela Isfeld, president of the Professional Association of Foreign Service Officers, said the union was happy to see the Liberal platform commit to enhancing diplomacy but now wants to know “how that is actually going to translate into action.”

A proper foreign policy review and fresh plan are “long overdue,” said Isfeld, whose organization represents more than 2,000 active and retired members of Canada’ foreign service.

There is no better time to undertake the project, now that Canada is considering its place in the world in the face of tensions with the U.S., she added.

Isfeld said many key issues in the recent election — including defence policy and economic and national sovereignty — are linked to diplomacy and the foreign service.

The review should take into account previous studies and involve consultation with public interest groups, Indigenous groups, provinces and municipalities, she said.

The last major federal review of the foreign service was released in 2005 under then-prime minister Paul Martin.

The government has mapped out strategies in recent years on Africa, the Indo-Pacific and the future of diplomacy.

As part of the diplomacy strategy, published in 2023, the government promised to expand Canada’s diplomatic footprint abroad.

Sen. Peter Boehm, a former foreign service officer, said that for any future review to be effective, it must consult with Canadians because “there really wasn’t that much in the platform.”

Boehm was chair of the Senate committee on foreign affairs and international trade in 2023 when it recommended that Global Affairs Canada examine its senior management structure to see how it could reduce the number of senior officials and reallocate resources.

Carney has emphasized the need for Canada to diversify its trading partners in response to U.S. President Donald Trump’s global trade war.

Boehm said that might mean sending more trade commissioners to countries in Europe, Asia, Latin America and Africa.

Isfeld said sending more diplomats abroad likely would require more resources — not just reallocation of current employees. She said staffing is essentially “bare bones” in many missions, with just one representative in some locations.

“There shouldn’t be a section or a team in any embassy where there isn’t at least a backup,” she said.

Isfeld said ensuring there are at least two staffers in every mission probably would involve increasing the number of foreign service staff by at least 50 to 60 per cent.

The government also should consider hiring more Canada-based employees, depending on its priorities, as some divisions at Global Affairs Canada are “really understaffed,” she added.

Isfeld said some foreign service officers working in the United States have concerns about political issues in the country and a lack of access to services.

“I think people are feeling nervous and that’s going to translate when they talk to the people who are interested in replacing them,” she said. “It’s a shame because this is where we’re really going to need really good people.”

Boehm said Canada faces a “real inflection point in global relations” because the “old order” is being challenged by the United States.

He said he is looking to the coming throne speech for details about Carney’s plans for Canada’s presence abroad.

“This will be the opportunity for the government, for the prime minister, to set up that ambitious agenda that he was talking about during the campaign,” Boehm said.

This report by The Canadian Press was first published May 8, 2025.

Catherine Morrison, The Canadian Press


WASHINGTON (AP) — Word spread — and fast — as it does in so many moments of rumor and fear.

Early Tuesday morning, dozens of concerned parents and staff members gathered outside of Mundo Verde, one of Washington’s most prominent bilingual schools, bracing for a crackdown.

A flurry of rumors and unconfirmed media reports had fueled fears that agents of Immigration and Customs Enforcement would be descending on area schools that were known to have large Hispanic immigrant populations.

The group tensed up as a black SUV slowly cruised past the school twice, then parked up the block. “I think it’s happening,” one parent said.

The man who emerged turned out to be a television news cameraman. People laughed in relief — for the moment.

Washington’s sanctuary city status in limbo

It was a rare moment of levity in the middle of several days of tension and fear as Washington’s Hispanic community waits for President Donald Trump’s pledge of an immigration crackdown to take shape in the nation’s capital. It mirrors, in some ways, similar fears around the country.

The reports of a crackdown on bilingual schools in the District turned out to be a false alarm that day — but only partially false. While the schools were on high alert, ICE agents reportedly raided several local restaurants, including Millie’s in northwest Washington. On Wednesday, staffers at Millie’s were reluctant to discuss the incident, with one manager — who did not give a name — saying the restaurant had been descended upon by “fascists.”

Staff at Millie’s referred all questions to owner Bo Blair, who did not respond to an emailed request for comment. ICE also did not immediately respond to a request for details on what establishments had been raided and whether anyone had been detained.

The ambient fear among Washington’s robust Hispanic community, though, remains. It is exacerbated by concerns that the city government will not help them. Washington, D.C., declared itself a sanctuary city in 2020 via the Sanctuary Values Act. Among the most prominent aspects of that declaration is a “prohibition on cooperation with federal immigration agencies” by city officials and agencies.

But Mayor Muriel Bowser has publicly distanced herself from that status ever since Trump was elected to a second term. Bowser has worked hard to maintain a positive relationship with Trump and with congressional Republicans, who hold significant power over the District of Columbia.

In February, she publicly characterized the sanctuary city designation as “an expression of our values,” but not a binding legal concept. The city and its agencies, she said, would not hinder or defy any federal immigration enforcement efforts.

“I think it’s misleading to suggest to anyone that … this is a place where you can violate immigration laws,” Bowser said. “The city is not an immigration enforcement agency. No city is. The federal government is.”

How the community prepares for ICE raids

Washington’s Hispanic community, and the schools and charities that serve it, have spent months quietly preparing for the worst-case scenario.

“My community is really scared,” said one senior official at a local bilingual school, speaking on condition of anonymity to protect her students, parents and staff. “We have a whole crisis management plan if ICE was to come to the door.”

That plan includes posting “private property” signs all around the school perimeter and running special trainings for staff members on how to handle the arrival of ICE agents. Parents have been advised to sign “custody agreements” stipulating who would be authorized to take care of their children if they were suddenly detained. The administrator estimated that as much as 35% of the school’s student body “could be undocumented.”

In February, a collection of bilingual charter schools hosted a “Know Your Rights” training session for parents conducted by an immigration attorney. Dozens of families attended, although many were afraid to attend in person and participated via Zoom.

The attorney, speaking on condition of anonymity to protect her clients, said requests for “Know Your Rights” training sessions have surged in the past six months, “Anybody who was anything less than a full citizen is going, ‘Oh my God, what does this mean for me?’”

The attorney said that “managing this culture of fear” has become a steadily increasing part of her job. And for clients who are undocumented, “I don’t really have advice for them other than to just stay off the radar.”

At Mundo Verde this week, parents set up tables on the sidewalk so they could work on their laptops and stay all day, just in case. Another school, Oyster-Adams Bilingual School, established a volunteer escort network to help bring students safely to and from the school building.

Rio Sigala, a Mundo Verde parent, praised the immediate rallying of physical support from the school’s non-Hispanic parents and community.

“As a Latina, seeing how many parents are out here in solidarity makes you feel less alone,” Sigala said. “You walk around kind of scared and to see everyone come out, it feels hopeful.”

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Associated Press reporter Chris Megerian contributed to this report.

Ashraf Khalil, Jacquelyn Martin And Nathan Ellgren, The Associated Press






Newly-elected Canadian Prime Minister Mark Carney visited the White House on Tuesday in search of common ground during an ongoing trade war that has shattered decades of trust between the his country and the U.S. Although the conversation was civil, President Donald Trump repeated erroneous rhetoric about how the U.S. provides Canada with billions of dollars in subsidies.

“It’s hard to justify subsidizing Canada to the tune of maybe $200 billion a year,” he said. “We protect Canada militarily, and we always will. We not going to, you know, that’s not a money thing. But we always will. But, you know, it’s not fair. But why are we subsidizing Canada $200 billion a year or whatever the number might be? It’s a very substantial number.”

Here’s a closer look at the facts.

CLAIM: The U.S. subsidizes Canada with subsidies of about $200 billion per year.

THE FACTS: This is false. According to the White House, the number is based on the U.S. trade deficit with Canada and higher military spending by the U.S., including expenditures associated with the North American Aerospace Defense Command, or NORAD. An exact total is difficult to discern because there is no publicly available data on NORAD spending. But even the most generous estimates do not put the total costs anywhere close to what Trump claims.

A trade deficit occurs when the cost of a country’s imports are higher than its exports. Using seasonally adjusted data, the U.S. deficit with Canada for both goods and services was $35.661 billion in 2024. It was higher for just goods, ranging from $63.336 billion to $70.603 billion.

The White House put the goods and services deficit with Canada at $53.5 billion. This is closer to the figure from 2022 — $57.565 billion.

Either way, economists agree that describing a trade deficit as a subsidy is wrong.

“That’s never been the definition of a subsidy, a subsidy is defined as a gift without any compensation in return,” said Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics. “So whatever the number is, the concept is way off base.”

Gian Maria Milesi-Ferretti, a senior fellow at the Brookings Institution’s Hutchins Center on Fiscal and Monetary Policy, said a trade deficit occurs based on relative demand in different countries and what they specialize in.

In terms of military spending, the White House also pointed to how much the U.S. and Canada spend on their militaries and what percentage of their gross domestic product that is. This appears to be a reference to NATO’s investment guideline. Member countries agreed in 2006 to commit to spending a minimum 2% of their GDP on their own defense. Some countries, including Canada, have not yet met that guideline, a lapse which Trump often criticizes.

Canada spent $29.3 billion on defense in 2024, which amounted to 1.3% of its GDP. The U.S., which is 13 times bigger than Canada, spent significantly more at $997 billion, or 3.4% of its GDP, exceeding the NATO guideline. Those numbers were slightly lower in 2023 — the data cited by the White House — at $27.2 billion and $916 billion respectively, though the percentages of GDP for both were the same.

According to the International Monetary Fund, Canada’s GDP in 2024 was about $2.241 trillion. This means that the country would have needed to spend $44.82 billion total on defense order to meet the 2% NATO guideline, making it short by approximately $15.52 billion.

“No, they don’t owe us that money, but they aren’t paying their fair share, and that’s a fair criticism.” said Mark Cancian, a senior advisor in the Center for Strategic and International Studies’ defense and security department.

Discounting whether they should be deemed subsidies, adding the trade deficit for goods and services in 2024 to Canada’s gap in defense spending the same year results in a total of only about $51 billion. Using the highest calculation of the goods deficit only for 2024 pushes the total up, to approximately $86 billion.

The White House’s final point was that the U.S. “covers about 60 percent of the bill for NORAD.” Created in 1954 as a means of defense against possible long-range attacks from the Soviets, NORAD is a bi-national organization jointly run by the U.S. and Canada that is charged with preventing air and maritime attacks against North America.

There is no publicly available data on NORAD spending by the U.S. or Canada. The 60% figure cited by the White House refers to a 1985 cost-sharing agreement for the operations and support of NORAD’s North Warning System that is still in place today.

In 2022, then-Canadian Defense Minister Anita Anand announced a $4.9 billion (US $3.52 billion) investment in NORAD over six years and $38.6 billion (US $27.72 billion) over 20 years on an accrual basis.

Defense economists Binyam Solomon and Ross Fetterly quantified NORAD burden sharing by the U.S. and Canada in a paper first published in 2023 by the journal Defense and Peace Economics titled, “Canada and NORAD: Economics and Burden Sharing.”

The pair found that the numbers change drastically depending on how they are calculated. One estimate found that the U.S. shoulders about 97.6% of the North American defense burden while receiving about 64% of the benefits. Canada, meanwhile, contributes about 2% of the burden while enjoying about 36% of the benefits. But leaving out the variable of Canada’s vast exposed border means that the U.S. shoulders the same burden while enjoying 91% of the benefits. In this instance, Canada enjoys just 9% of the benefits.

A sizable portion of NORAD warning and control systems are in Canadian territory, according to the paper.

Cancian explained that the U.S. needs Canada’s help to effectively defend North America from its own land because if air defenses started at the U.S. border, it would be too late to prevent many threats.

“Even if the Canadians pulled out, we’d have to have something like that in place,” he said of NORAD. “So I would not consider that a subsidy at all. Canadians can make a fair argument that we owe them.”

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Find AP Fact Checks here: https://apnews.com/APFactCheck.

Melissa Goldin, The Associated Press


WASHINGTON — U.S. President Donald Trump’s preliminary trade agreement with the United Kingdom sent a signal to countries around the world — including Canada — about the goals of his campaign to upend global trade with tariffs.

While the agreement announced Thursday has not been finalized and many details remain unclear, it suggests the president is willing to lower some tariffs but not to drop duties completely.

“The final details are being written up,” Trump told reporters in the Oval Office.

Trump launched his trade war on the world in April with “reciprocal” tariffs, only to walk back the most devastating duties a few hours later. Trump said the 90-day pause would give countries time to negotiate a deal while he kept in place a 10 per cent universal tariff.

Trump also imposed a 145 per cent tariff on imports from China, as well as 25 per cent duties on steel, aluminum and automobiles.

Thursday’s announcement was a critical one for the Trump administration as it faces mounting pressure from Americans concerned about rising prices and markets in turmoil.

Trump said the deal will boost American ethanol and beef exports to the United Kingdom. U.S. Commerce Secretary Howard Lutnick said the baseline 10 per cent tariffs on most U.K. imports to the United States will stay in place.

U.K officials said in a separate press conference that duties on steel and aluminum will be lifted, while tariffs on automobiles will drop to 10 per cent for a quota of 100,000 vehicles.

Trump’s trade adviser Peter Navarro told reporters at the White House that the United Kingdom’s digital services tax is “still in negotiations.” The Trump administration has taken aim at Canada’s own digital services tax, which it says amounts to “extraterritorial” taxation of American firms.

Experts on Canada-U.S. relations said the deal could offer hints about how his administration might approach trade talks with Canada.

“It shows that the Trump administration is amenable to negotiation,” said Fen Osler Hampson, an international affairs professor at Carleton University and co-chair of the Expert Group on Canada-U.S. Relations.

Canada was not included in Trump’s “reciprocal” tariff regime and is not subject to the 90-day race to make a deal.

The president hit Canada with economywide tariffs in March, which Trump linked to the flow of fentanyl across the U.S.-Canada border. A few days later, Trump partially walked back the duties for imports compliant under the Canada-U.S.-Mexico-Agreement on trade, called CUSMA.

Canada is also being hit with tariffs on steel, aluminum and automobiles — with a carveout for American-made parts of vehicles.

CUSMA was negotiated during the first Trump administration and is up for review next year. Experts have said the president’s tariffs undermine the continental trade pact.

The president’s exclusion of most CUSMA-compliant imports — and his comments during an Oval Office meeting with Prime Minister Mark Carney on Tuesday — suggest Trump still sees value in the agreement. Trump said the agreement is “still very effective.”

Trump’s meeting with Carney was largely cordial, considering it came after months of the president taunting Canada with talk of annexation and calling former prime minister Justin Trudeau a “governor.” Trump said Canada chose a “very talented person” in its election and Carney called Trump a “transformational” president.

The U.K. deal suggests the relationship reset between Carney and Trump is a very good sign, said Christopher Sands, director of Johns Hopkins University’s Center for Canadian Studies.

U.K. Prime Minister Keir Starmer’s “persistence and friendly professionalism were an effective combination in dealing with Trump tariffs,” Sands said in a text message. A similar approach might work for Carney.

Thursday’s deal indicates Trump may not want to completely blow up international trade. Sands said claims made by some Trump officials that the president is looking to reset global trade rules in the United States’ favour should be taken seriously, at least for now.

The U.K. trade agreement suggests some kind of U.S. tariff on Canadian goods could remain in place, even if trade talks between Ottawa and Washington largely succeed, Hampson said.

“The reality is, we are entering an era of managed trade,” he said via text message.

“If CUSMA stays in place, not only can we live with Trump’s tariffs, if they are lower we may actually benefit vis-a-vis other countries who sell in the U.S. market.”

Henry Olsen, a senior fellow at the Public Policy Center, poured cold water on Canadian expectations during a panel discussion at the American Enterprise Institute in Washington on Wednesday.

Trump has been clear that “he doesn’t believe in trade deficits,” Olsen said. While Trump greatly exaggerates the deficit with Canada — which is linked to U.S. imports of Canadian energy — Olsen said the president will want any agreement to reduce that deficit.

“That will be extremely difficult for Prime Minister Carney to do,” he said.

— With files from The Associated Press

This report by The Canadian Press was first published May 8, 2025.

Kelly Geraldine Malone, The Canadian Press


MADISON, Wis. (AP) — Republicans who control the Wisconsin Legislature voted Thursday to kill most of the top spending priorities of Democratic Gov. Tony Evers, including legalizing marijuana, even as both sides negotiate a tax cut.

The Legislature’s Republican-controlled budget committee voted along party lines to kill more than 600 budget proposals put forward by Evers, including spending more state money on child care providers, expanding Medicaid and raising taxes on joint tax filers those who earn more than $1 million.

Republicans did the same thing in each of Evers’ previous three budgets and had said they were going to do it again. Some of the killed ideas, like allowing absentee ballots to be processed before polls open on Election Day, have had bipartisan support in the past and could return in another form.

The cuts come amid uncertainty about how much federal money the state will get as President Donald Trump’s administration moves to drastically reduce government spending. Evers’ budget as introduced would have spent about $119 billion money over two years, a 20% increase in spending.

Evers and Republicans have been talking about a tax cut plan they both could support but have not released details. Republicans argue that most of the state’s roughly $4 billion surplus should be returned as tax cuts rather than used to support spending on K-12 schools, the University of Wisconsin and other state programs.

Evers proposals stripped from the budget on Thursday include: eliminating the tax on tips; increasing funding to combat what some people call forever chemicals or PFAS; targeted property tax cuts for veterans, seniors and people with disabilities; spending $128 million on new financial aid targeting low-income college students and adding gender-neutral language such as “person inseminated” to state law.

“Republicans talk a lot about what they’re against, but not what they’re for,” Evers said in a statement. “There are pressing challenges facing our state. Wisconsinites are sick and tired of having a do-nothing Legislature. Republicans must get serious about getting things done.”

Republican Sen. Howard Marklein, co-chair of the budget committee, said “popular items” could return as separate bills. Co-chair Rep. Mark Born said just because the committee was rejecting Evers’ approach to various issues facing the state doesn’t mean they won’t be addressed in other ways.

The vote gutting the governor’s spending plan marks the first step in what will be a weekslong process of slowly rebuilding the two-year budget to include more Republican priorities. Evers can make more changes with his broad veto power once the Legislature passes a budget, which typically happens in late June or early July.

However, Republicans have talked about taking longer to pass a budget this year, or passing only certain top priority spending bills, in reaction to a Wisconsin Supreme Court ruling upholding a line-item budget veto Evers made in 2023 that extended a K-12 spending increase for 400 years.

That ruling affirmed the governor’s power to veto digits from a budget bill, allowing him to create new amounts and years not envisioned by lawmakers.

The court noted in its ruling, however, that the Legislature could rein in the governor’s veto powers in several ways. That includes passing a constitutional amendment that’s under consideration curbing a governor’s veto power and drafting budget bills in a way to prevent a governor from making such a sweeping veto.

Scott Bauer, The Associated Press



MADISON, Wis. (AP) — Democratic voters on Thursday asked the liberal-controlled Wisconsin Supreme Court to throw out the battleground state’s current congressional district boundaries after a similar request was rejected last year.

Republicans currently hold six of the state’s eight U.S. House seats — but only two of those districts are considered competitive. The petition seeks to have the state’s congressional district lines redrawn ahead of the 2026 midterms. Filed on Wednesday and made public Thursday, the petition comes from the Elias Law Group, which represents Democratic groups and candidates and also filed last year’s request.

The new petition argues that the court’s decision to redraw maps for state legislative districts a couple years ago has opened the door to revisiting maps for U.S. House districts. The petition asks for the Wisconsin Supreme Court to take the case directly, skipping lower courts.

Spokespeople for the Wisconsin Republican Party and the National Republican Congressional Committee, which works to elect Republicans to Congress, had no immediate comment.

But Wisconsin Democratic Rep. Mark Pocan, who criticized the state Supreme Court for not hearing the lawsuit last year, praised the new effort.

“The residents of Wisconsin deserve fair maps,” Pocan said in a text message. “Hopefully this will provide that.”

The court is controlled 4-3 by liberal justices. Democratic-backed candidate Susan Crawford won an April election to ensure the court will remain under a 4-3 liberal majority until at least 2028.

Redistricting was an issue in that race after Crawford spoke at a virtual event billed as a “chance to put two more House seats in play,” a move that Republicans said shows that Crawford is committed to redrawing congressional districts to benefit Democrats. Crawford denied those allegations.

The court in 2023 ordered new maps for the state Legislature, saying the Republican-drawn ones were unconstitutional. The GOP-controlled Legislature, out of fear that the court would order maps even more unfavorable to Republicans, passed ones drawn by Democratic Gov. Tony Evers. Democrats made gains in the state Legislature in the November election and are hoping to take majority control in 2026.

When ordering the state legislative maps redrawn, the Wisconsin Supreme Court said the earlier conservative-controlled court was wrong in 2021 to say that maps drawn that year should have as little change as possible from the maps that were in place at the time. The latest lawsuit argues that decision warranted replacing the congressional district maps that were drawn under the “least change” requirement.

In 2010, the year before Republicans redrew the congressional maps, Democrats held five seats compared with three for Republicans.

Democrats are eyeing two congressional seats for possible flipping in 2026.

Western Wisconsin’s 3rd District is represented by Republican U.S. Rep. Derrick Van Orden, who won an open seat in 2022 after longtime Democratic Rep. Ron Kind retired, and won reelection in 2024.

Southeastern Wisconsin’s 1st District, held by Republican Rep. Bryan Steil since 2019, was made more competitive under the latest maps but still favors Republicans.

The current congressional maps in Wisconsin, drawn by Evers, were approved by the state Supreme Court. The U.S. Supreme Court in March 2022 declined to block them from taking effect.

Scott Bauer, The Associated Press