Overnight Finance: Funding talks stall | Record rise in incomes | House panel passes Dodd-Frank overhaul | Lawmaker moves to force IRS impeachment vote

Government funding talks stall out: Negotiations over a stopgap measure to fund the government until Dec. 9 have stalled amid squabbling among Republicans over controversial riders related to Zika funding and the Export-Import Bank.

Senate Democratic Leader Harry Reid (Nev.) on Tuesday said internal GOP discord is holding up work on the funding stopgap, the only must-pass legislation on the agenda before Congress can recess for the November elections.

Reid voiced frustration to colleagues during a private lunch meeting Tuesday over having yet to receive a draft of the short-term continuing resolution (CR), which Senate Majority Leader Mitch McConnell (R-Ky.) has slated for floor action this week.

“At this stage of negotiations everyone should understand we’ve only had talk. Nothing in writing. Zero in writing. Discussions have gone on for a week. We don’t have an offer in writing,” Reid told reporters after the lunch. The Hill’s Alexander Bolton and Sarah Ferris tell us what’s going on: http://bit.ly/2cd1vYW.

Senate Dems: Don’t tie Cruz’s internet fight to CR: The Senate’s top two Democrats are sending early warning signs that a push by Sen. Ted Cruz to link a fight over control of the internet to a short-term government funding bill is a non-starter. 

Asked if Democrats are opposed to the Texas Republican’s push to include a rider to block the administration from relinquishing the oversight role the United States has had over the internet, Sen. Dick Durbin (D-Ill.) said “of course.”

“If he’s going to be allowed to dream up an issue and produce it and say we’re going to stop the government, which he has quite a good reputation of doing … where in the heck are the Senate Republicans?” Durbin, the Senate’s No. 2 Democrat, added. The Hill’s Jordain Carney fills us in: http://bit.ly/2cpxuVN.

Hoyer pans ‘minibus’ spending strategy: House Republican leaders pushing for a series of smaller spending bills in December might not get any help from across the aisle.

Rep. Steny Hoyer (D-Md.), the minority whip, said Tuesday that Democrats are opposed to the “minibus” strategy favored by Speaker Paul Ryan (R-Wis.) and the Republicans in the lame-duck session of Congress following the November elections. Instead, the Democrats want to use the post-election session to adopt one large omnibus package to fund the government through the remainder of the fiscal year.

“I don’t know why you would talk about minibuses, unless you want to leave somebody off the bus,” Hoyer told reporters in the Capitol. “It’s the only reason you talk about a minibus, because you want to have a bus too small to carry all the folks.” The Hill’s Mike Lillis takes us along for the ride: http://bit.ly/2cVx5cs.

GOP lawmaker sets IRS chief impeachment vote in motion: Rep. John Fleming (R-La.) on Tuesday moved to force a House vote this week on a resolution to impeach IRS Commissioner John Koskinen.

With Rep. Tim Huelskamp (R-Kan.) at his side, Fleming gave notice on his “privileged resolution” to impeach Koskinen. The House will need to act on the measure no later than Thursday, since privileged resolutions have to be taken up within two legislative days once notice is given.

Fleming and other members of the House Freedom Caucus have been pressing for a vote on Koskinen’s impeachment for months. They argue that the commissioner impeded Congress’s investigation into the IRS’ scrutiny of Tea Party groups’ applications for tax-exempt status.

The House can vote on the substance of the bill, table the resolution or refer it to the House Judiciary Committee. The House GOP conference is expected to meet on Thursday to discuss the resolution. The Hill’s Naomi Jagoda explains: http://bit.ly/2cjPq78.

Incomes increase for first time since 2007: Incomes rose at a record pace in 2015 as American workers got a 5.2 percent boost to their paychecks, the first increase in eight years. 

Median household income surged to $56,516 last year, from $53,718 in 2014, the first annual increase since 2007, before the recession started, the Census Bureau said on Tuesday.

Overall, the report on income, poverty and health insurance rates showed that the poverty rate fell faster than at any point since 1968 and the uninsured rate continued to fall since the passage of ObamaCare.

“Today’s report from the Census Bureau shows the remarkable progress that American families have made as the recovery continues to strengthen,” the White House said in a statement. The Hill’s Vicki Needham breaks it down: http://bit.ly/2c8OEZq.

Happy Tuesday and welcome to Overnight Finance, where we’re surprised at who’s still feeling the Bern. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

Tonight’s include a step forward for the House Republican plan to replace Dodd-Frank, a trade case between the United States and China, a shakeup at Wells Fargo and a bad look for the Trump economy.

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

On tap tomorrow:

• House Agriculture Committee: Hearing on American agricultural trade with Cuba, 10 a.m., http://bit.ly/2cjDPm4.
• House Budget Committee: Hearing entitled “Growing Risks to the Budget and Economy,” 10 a.m. http://bit.ly/2craXck.
• House Judiciary Committee: Markup of EB-5 investor visa program legislation.
• House Small Business Committee: Hearing entitled “IRS Puts Small Businesses Through Audit Wringer,” 11 a.m. http://bit.ly/2craXck.
• Senate Budget Committee: Hearing to examine the Congressional Budget Office, 2:30 p.m. http://bit.ly/2cIWLsL.

Join The Hill on Wednesday, September 14 for “Preparing for the Next Disaster: A Policy Discussion on Community Resilience,” featuring Sen. Joe Manchin (D-W.Va.), Rep. Blaine Luetkemeyer (R-Mo.), and Timothy W. Manning, Deputy Administrator for Protection and National Preparedness at FEMA. Topics of discussion include preparedness efforts to increase community resilience and the role of federal, state & local government in pre-disaster mitigation. RSVP here.

Trump presidency could cost the US economy $1 trillion: A Donald Trump presidency that successfully enacts many of the Republican nominee’s key policy proposals would cost the U.S. economy $1 trillion, a new analysis showed on Tuesday.

Oxford Economics, an independent global advisory firm, said that a combination of protectionist trade and immigration policies that include deporting many illegal immigrants and building a border wall would severely damage the economy over the next five years.

“Should Mr. Trump prove more successful in achieving adoption of his policies, the consequences could be far-reaching — knocking 5 percent off the level of U.S. GDP relative to the baseline and undermining the anticipated recovery in global growth,” the report said. Vicki Needham takes us inside: http://bit.ly/2cLl8pw.

House panel passes Dodd-Frank overhaul: A House committee advanced contentious legislation Tuesday that would overhaul the Dodd-Frank financial reform law.

The House Financial Services Committee narrowly approved the bill from Chairman Jeb Hensarling (R-Texas) by a vote of 30-26. Every Democrat opposed the measure, and all but one Republican, Rep. Bruce Poliquin (Maine), supported it.

The legislation would make a series of dramatic changes to Dodd-Frank. It was quickly passed by the committee after less than two hours of debate because Democrats didn’t even attempt to amend it, instead rejecting it out of hand.

Rep. Maxine Waters (Calif.), the top Democrat on the panel, dismissed the measure as a political stunt, a “highly partisan, damaging piece of legislation.”

“This bill is so bad that it simply cannot be fixed,” said Waters. “Democrats will not offer any amendments, and we move to dispense with this political theater.” The Hill’s Peter Schroeder tells us what’s next: http://bit.ly/2c8NE7J.

US launches trade case against China over ag products: The Obama Administration on Tuesday launched a new case at the World Trade Organization (WTO) challenging China’s excessive government support for rice, wheat and corn.

U.S. Trade Representative Michael Froman and Agriculture Secretary Tom Vilsack said that China’s government programs provide billions in market price support for key crops to the detriment of U.S. farmers.

“These programs distort Chinese prices, undercut American farmers and clearly break the limits China committed to when they joined the WTO,” Froman said.

“As this administration has consistently and repeatedly shown, we will not stand by when our trading partners fail to follow the rules like everyone else,” he said.

The trade enforcement action is the 14th complaint brought by the USTR against China at the WTO since 2009. The United States has won all cases decided so far. Vicki Needham has more: http://bit.ly/2c8N7Tp.

Atlanta Fed chief stepping down: A top Federal Reserve official announced Wednesday that he plans to step down in February.

Dennis Lockhart, president and CEO of the Federal Reserve Bank of Atlanta, said he would be seeking new opportunities and planned on leaving the regional bank on Feb. 28. Lockhart has led the Atlanta Fed since 2007.

“It has been an enormous privilege to serve as president of the Federal Reserve Bank of Atlanta,” Lockhart said. “The Atlanta Fed is an outstanding organization, and its employees are steadfastly dedicated to helping ensure the health and stability of our nation’s economy and financial system. I am proud of the work we have accomplished together, and I believe the Bank is well positioned for the future.”

Lockhart did not say what his next move would be, but rather that he wanted to pursue interests in “public policy, civic work and private business.” Peter Schroeder tells us what’s at stake with Lockhart’s departure: http://bit.ly/2cq60OU.

Wells Fargo makes changes in wake of fraud scheme: Wells Fargo & Co. is eliminating all product sales goals for retail bankers in a move aimed at calming concerns following revelations that thousands of employees allegedly created millions of fake accounts.

The change in policy, which will go into effect on Jan. 1, is meant to reassure congressional lawmakers and its customers that the bank is taking action to improve practices after getting hit with a $185 million fine after employees reportedly opened more than 2 million unauthorized credit and deposit accounts.

“We are eliminating product sales goals because we want to make certain our customers have full confidence that our retail bankers are always focused on the best interests of customers,” said CEO John Stumpf in a statement.
“We believe this decision is both good for our customers and good for our business,” he said.

The Senate Banking Committee has asked Stumpf to testify on the bank’s alleged misconduct at a hearing on Sept. 20.

Vulnerable Dem proposes cutting lawmaker pay: A freshman House Democrat facing a tough reelection fight this year has unveiled legislation to cut the salaries of members of Congress.

Rep. Brad Ashford’s (D-Neb.) bill introduced this week would reduce congressional salaries by ten percent. That would slash rank-and-file lawmakers’ $174,000 salaries to $156,600 per year.

Ashford touted the measure as a way to cut congressional “privileges and perks,” which would also include eliminating lawmakers’ pensions and using taxpayer funds for first-class airfare.

“Congress can act and should act to restore the American people’s confidence in their government. That starts with reducing and eliminating perks,” Ashford said in a statement.

The freshman lawmaker is arguably the most vulnerable incumbent House Democrat running for reelection in November. The Hill’s Cristina Marcos tells us more about the testy issue: http://bit.ly/2cuhGP1

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