The White House

Office of the Press Secretary

Readout of the President’s Call with President Putin of Russia

President Obama spoke with Russian President Putin today about the situation in Ukraine and the additional sanctions on Russian individuals and entities that the United States announced on July 16.  President Obama emphasized that he remains committed to a diplomatic solution and that sanctions were not his preferred course of action.  President Obama noted, however, that in the face of extensive evidence that Russia is significantly increasing the provision of heavy weapons to separatists in Ukraine and Russia’s failure to take other steps set out by the United States and Europe to de-escalate the crisis, it was necessary to impose additional sanctions, consistent with the clear statements from the United States and our allies following the G-7 meeting in Brussels.  President Obama also reiterated his concerns regarding the buildup of Russian forces near the Ukrainian border.  President Obama called on President Putin to take concrete steps to de-escalate the situation, including to press separatists to agree to a cease-fire, support a roadmap for negotiations, halt the flow of fighters and weapons into Ukraine, obtain the release of all hostages still held by the separatists, and work to establish an effective OSCE border-monitoring mechanism.  He noted that Russia would face continued costs and isolation unless it takes these concrete steps.  The President emphasized that Russia and the United States have a shared interest in supporting a stable and prosperous Ukraine.  President Obama and President Putin agreed on the need for a peaceful resolution to the Ukraine crisis achieved through diplomatic means.  During the call, President Putin noted the early reports of a downed passenger jet near the Russia-Ukraine border.

The White House

Office of the Press Secretary

Gaggle by Press Secretary Josh Earnest Delaware, 7/17/14

Aboard Air Force One
En Route Delaware 

12:10 P.M. EDT

MR. EARNEST:  Good afternoon, everybody.  We’ll just do a quick announcement at the top here.

Investing in a 21st century American infrastructure is an important part of what the President believes we need to do in the long term for the benefit of our economy and the benefit of middle-class families in America.  Modern and efficient infrastructure, whether moving goods to our harbors and ports, or connecting people to services, or gigabytes to our offices and homes, helps businesses expand, manufacturers export, investors bring jobs to our shores, and lowers prices for goods and services for American families.

So today, the President will announce a new executive action to create the Build America Investment Initiative, a government-wide initiative to increase infrastructure investment and economic growth.  These steps build on the momentum the President has generated using his executive authority to invest in modernizing our infrastructure, including speeding up the permitting process for major infrastructure projects to create more jobs.  These long-term benefits are crucial to the success of our economy and middle-class families, but they’re also important for short-term investments in terms of creating jobs.

You’ll hear more from the President on this today.  But with that, because it’s a short flight, I'll go to your questions.

Q    Do you have any information on this passenger airplane that was shot down in Ukraine?

MR. EARNEST:  I can tell you that we're aware of reports of a downed passenger jet near the Russia-Ukraine border.  The President has been briefed on these reports.  The President has directed his team to be in close touch with senior Ukrainian officials on this matter.  But I'm not in a position at this point to confirm any of the details that are included in those reports.  The President has asked to be updated over the course of the day.

Q    Do you have any idea -- do you know whether a plane was shot down, or how it was shot down, anything like that?

MR. EARNEST:  I'm not in a position to confirm -- I know that there are a number of reports speculating about the possible cause, but I'm not in a position to confirm any details at this point.

Q    Can you confirm that there’s a plane down?

MR. EARNEST:  I can confirm that we've seen those reports, but I'm not in a position to confirm any details at this point. 

Q    Has the President or any of the staff been in touch with U.S. allies, including Russia, about these reports?

MR. EARNEST:  Well, I can tell you that earlier this morning the President did have a phone call with President Putin.  The topic of that phone call was -- it was obviously to discuss the sanctions regime that the President and his team and European leaders announced yesterday.

Q    Who initiated that call?

MR. EARNEST:  That call was placed at the request of Moscow. And it was an opportunity for the President to make clear once again the important principle that's at stake here.  The United States is committed to ensuring that this international norm of countries respecting the territorial integrity of other countries is prioritized.  And the President has made clear that the international community, the United States and our European allies are willing to take steps and impose economic costs on Russia if they decline to respect those basic norms. 

And it’s an opportunity for Russia to play a constructive role in deescalating this conflict.  They could shut down the border and prevent the transfer of heavy weapons and materiel to separatists.  They have not done that.  President Putin himself could intervene with pro-Russian separatists and encourage them to abide by the ceasefire.  He has not done that. 

That is the reason that you’ve seen the international community take steps to impose additional costs and further isolate Russia, and additional steps are on the table if Russia doesn’t change course.

Q    Do you know if this downed Malaysian plane was discussed on that call?

MR. EARNEST:  The only readout I have so far is just of what I've conveyed to you in terms of their discussion about sanctions.

Q    But do you know whether that call happened before you guys were aware of the report of the plane?

MR. EARNEST:  The precise time I'm not aware of.  But I'll see if I can get you some more details.

Q    Do you know perhaps the tone of the call or what President Putin was conveying to President Obama?

MR. EARNEST:  Well, as you heard the President say before, his relationship with President Putin is very businesslike, that they do have a candid exchange of views when they have the opportunity to speak.  That occurred again today.

Part of this conversation also included the President’s view that these sanctions aren’t imposed just for the sake of imposing sanctions.  We would like to see the situation in Ukraine resolved in a way that allows the Ukrainian people to exercise some sovereignty over the direction of their country.  Right now the provocative actions that we’re seeing from Russia and pro-Russian separatists and efforts by Russia to support those pro-Russian separatists are preventing that from happening. 

So there is, as we’ve said many times, an opportunity for the Russian -- for the Ukrainian people to determine what they would like the future of their country to look like, and that that means the opportunity to have strong relations with their neighbor Russia, while at the same time having a useful, productive relationship with the West.  Those two things are not mutually exclusive.  That was part of the conversation as well today.

Q    So you’re saying that as of now the only topic that you know that was discussed on the call was the sanctions?

MR. EARNEST:  I’m saying that the only aspect of the conversation that I’m in a position to read out is the discussion that they had about the sanctions regime that was imposed yesterday.

Q    And you’re not in a position to read out any other calls about the plane with any other allies, any other foreign leaders?

MR. EARNEST:  Not at this point.  The President has not placed any calls like that.  I know that there have been U.S. officials that have already been in touch with Ukrainian officials and some of those conversations are at the specific direction of the President.

Q    Do you know who specifically briefed him on the plane?

MR. EARNEST:  I don't.

Q    Somebody on the national security side, though?

MR. EARNEST:  I don't know who spoke to the President first about the plane.

Q    You mentioned that some officials have made calls at the direction of the President.  Can you tell us who made the calls and to whom they were made?

MR. EARNEST:  I don't have those details in front of me either.

Q    Just a follow-up question on the sanctions, if I may. Yesterday Gazprombank was part of -- was one of the groups that was targeted.  Why not Gazprom itself?

MR. EARNEST:  There is a whole team at the Treasury Department that's been very focused on putting in place a sanctions regime that would maximize the impact on Russian businesses and the Russian economy while minimizing the impact on American businesses and the American economy.  In terms of the specific tactical decisions that they made about the size and scope of the sanctions, I’d refer you to the Treasury Department. 

As we’ve said a couple of times before, it doesn't make a lot of strategic sense to talk very candidly about what specific sanctions may be put in place, so I don't know how specific they’d be willing to get in terms of having that conversation.  But it’s evident from the reports that the sanctions regime that was announced yesterday has sent a pretty clear message to the Russians about the determination of the United States and our allies in Europe to impose further costs on Russia if they continue to destabilize the situation in Ukraine.

Q    Is it fair to say, though, Josh, that Gazprom itself was not targeted because it produces and provides so much gas to Europe?

MR. EARNEST:  I’m not in a position to say that.  Again, you’d have to -- in terms of the thinking behind the individual businesses that were named in the sanctions regime, I’d refer you to the Treasury Department.

Q    Josh, for planning, is there any possibility that the President would make a statement today on the situation in Ukraine?

MR. EARNEST:  At this point there’s no plan to do that.  But this obviously is a situation that just broke, and we’ll keep you updated.  If there are any changes to the schedule that are required based on today’s events we’ll obviously keep this group updated very closely.

Q    Can you update us on the administration’s briefings with members of Congress as it relates to the Iran negotiations? Are you having any success selling lawmakers on the idea of a possible extension of those negotiations?

MR. EARNEST:  Well, the administration believes strongly in the importance of consulting closely with Congress on this matter.  I can tell you that every single day this week senior administration officials have been in touch with congressional members and staff about this matter. 

Congress has played a constructive role in passing a sanctions regime against Iran that was -- that compelled them to the negotiating table.  And around that negotiating table we've seen the Iranians engage in conversations that were constructive. The constructive nature of those conversations has been a surprise to some people who were initially skeptical at the outset.  That skepticism was well founded, but we have had some conversations preliminarily in Vienna with the Iranians about what paths forward could look like, including the possibility of extending the agreement.  That's also been the subject of numerous conversations between senior administration officials and members of Congress.

In terms of the reaction of those members of Congress, I'd refer you to them.  But I'm not at this point prepared to suggest that there’s been a path forward chosen yet, but the range of options is being considered by the administration and is included in the discussions with Congress.

Thanks, guys.  Buckle up.  We'll see you in a minute.

END
12:21 P.M. EDT

The White House

Office of the Press Secretary

FACT SHEET: Building a 21st Century Infrastructure: Increasing Public and Private Collaboration with the Build America Investment Initiative

Today, the President will deliver remarks at the Port of Wilmington in front of the I-495 Bridge in Delaware. With 90,000 cars moving over it per day before repairs began, this bridge is a key example of the importance of infrastructure, which keeps the economy moving, spurs innovation, and bolsters our national competitiveness. At the port – and in this Year of Action – the President will announce a new executive action to create the Build America Investment Initiative, a government-wide initiative to increase infrastructure investment and economic growth. As part of the Initiative, the Administration is launching the Build America Transportation Investment Center – housed at the Department of Transportation – to serve as a one-stop shop for cities and states seeking to use innovative financing and partnerships with the private sector to support transportation infrastructure.

The President’s visit and announcement today are a part of the Administration’s continued push to highlight the importance of investing in our nation’s infrastructure so that we can build on the progress our economy is making by creating jobs and expanding opportunity for all hardworking Americans. The steps announced today continue the momentum the President has made using his executive authority – his pen and phone – to invest in modernizing our infrastructure, including speeding up the permitting process for major infrastructure projects to create more jobs.

The President supports the steps that Congress is taking in the short-term to avoid a lapse in the Highway Trust Fund, and he will continue to push for long-term solutions for our nation’s infrastructure and the American economy.

***

Investing in a 21st century American infrastructure is an important part of the President’s plan to build on the progress our economy is making by creating jobs and expanding opportunity for all hardworking Americans.  Modern and efficient infrastructure – whether moving goods to our harbors and ports or connecting people to services or gigabits to our offices and homes – helps small businesses to expand, manufacturers to export, investors to bring jobs to our shores, and lowers prices for goods and services for American families.

The President has been very clear that we need to do more to improve our infrastructure in order to create jobs, provide certainty to states and communities, help American businesses, and grow our economy.  He has put forth a long-term proposal that would do just that and pay for it by closing unfair tax loopholes and making commonsense reforms to our business tax system, while providing the certainty of reliable federal funding to states and communities.

And while the President is encouraged that Congress is heeding these calls by taking action in the short-term to prevent transportation projects across the country from grinding to a halt, the President will continue to act on his own to promote American economic growth where there is need or opportunity.  And right now, there is a real opportunity to put private capital to work in revitalizing U.S. infrastructure. 

That is why today, the President will sign a Presidential Memorandum to launch the Build America Investment Initiative, a government-wide initiative to increase infrastructure investment and economic growth by engaging with state and local governments and private sector investors to encourage collaboration, expand the market for public-private partnerships (PPPs) and put federal credit programs to greater use.  Starting with the transportation sector, this initiative will harness the potential of private capital to complement government funding.

  • Ø  As part of the Initiative, the Administration is launching the Build America Transportation Investment Center:  Housed at the Department of Transportation, this center will serve as a one-stop shop for state and local governments, public and private developers and investors seeking to utilize innovative financing strategies for transportation infrastructure projects.  Additional details are below.
  • Build America Interagency Working Group: To expand and increase private investment and collaboration in infrastructure beyond the transportation sector, a federal inter-agency working group, co-chaired by Cabinet Secretaries Lew and Foxx, will do a focused review with the best and the brightest from the public and private sector.  This group will work with state and local governments, project developers, investors and others to address barriers to private investments and partnerships in areas including municipal water, ports, harbors, broadband, and the electrical grid. The effort will include a particular focus on improving coordination to accelerate financing and completion of projects of regional and national significance, particularly those that cross state boundaries.
  • Infrastructure Investment Summit:  As part of the drive toward innovative infrastructure solutions and to highlight the opportunities for infrastructure investment, the Treasury Department will host a summit on Infrastructure Investment in the U.S. on September 9, 2014.  This session will bring together leading project developers and institutional investors with state and local officials and their Federal counterparts, and will focus on innovative financing approaches to infrastructure, and highlight other resources that support project development.

***

Build America Transportation Investment Center: Housed at the Department of Transportation, this center will serve as a one-stop shop for state and local governments, public and private developers and investors seeking to utilize innovative financing strategies for transportation infrastructure projects. This center will provide:

  • ‘Navigator Service’ for the Public and Private Sector: Through hands-on support, advice and expertise, the center will make DOT credit programs more understandable and accessible to states and local governments and leverage both public and private funding to support ambitious projects.  The center will also provide private sector developers and infrastructure investors with tools and resources to identify and execute successful PPPs.
  • Improved Access to DOT Credit Programs: The center will encourage awareness and efficient use of existing resources at the Department, including the Transportation Infrastructure Finance and Innovation Act (TIFIA) program.  TIFIA provides long-term, flexible financing to highway and transit projects that feature dedicated revenue sources.  Each dollar of Federal TIFIA funding can support about $10 in loans, loan guarantees or lines of credit.  In many cases, the lower cost of capital and flexible terms offered by TIFIA are critical factors in determining whether a PPP is a viable and cost-effective option for a project. The center will also focus on the use of key DOT programs including the Private Activity Bond program (PABs), and the Railroad Rehabilitation and Improvement Financing Program (RRIF). 
  • Technical Assistance: The center will share best practices from states that are leading the way on private investment to states that have not yet adopted innovative financing strategies, encouraging a more robust national market. Today, the top six states for PPPs have nearly two-thirds the value of all U.S. PPP projects. Twenty states have no PPPs in transportation at all. The center will provide technical assistance to help remove barriers to ensure the public and private sector can come together to complete projects that make sense. Through a website and on-demand technical assistance, the center will provide information about DOT credit programs, case studies of successful projects and examples of deal structures, standard operating procedures for PPP projects and analytical toolkits. It will also help interested investors better understand how DOT credit and grant programs can be used together to support project development.
  • Information to Reduce Uncertainty and Delays: The center will work in partnership with the interagency Infrastructure Permitting Improvement center to provide visibility for local and state governments, project sponsors and investors on the permitting process. 

Case Studies and Additional Background

The Build America Investment Initiative taps into the opportunity to increase the pipeline of effective public-private-partnerships and other innovative financing mechanisms:

  • High Demand: Institutional investors, both domestic and international, recognize the strength of our economy and want to invest in America. In 2013, the U.S. was the top destination for foreign direct investment with over $230 billion.  The global investment community has over $83 trillion dollars with a growing appetite for infrastructure. That is potentially hundreds of billions of dollars to fund the building of U.S. public-private infrastructure.
  • Proven Approaches: Some states and communities have established successful PPPs and have developed strong institutional knowledge of how these projects are best structured and managed.  Expanding that know-how to other states has the potential to increase the flow of capital by tens of billions of dollars over the next few years. Today, for example, the top five states in PPPs have nearly twice the per-capita value of projects as the next 20 best states – and if those states caught up, it could mean up to $30 billion worth of infrastructure projects.

Building on Models of Success: Some states and localities across the country have developed successful track records utilizing PPPs and other innovative financing approaches for infrastructure projects.  The Build America Transportation Investment center will use the lessons-learned from these leaders to help other communities and private project sponsors understand and better use federal financing programs and to structure deals that incorporate best practices and avoid pitfalls.

Case Study: Colorado FasTracks Project

Denver, Colorado is a community that has shown how transformative, multi-modal public infrastructure projects can be brought to fruition by integrating multiple financing sources.  Denver was able to utilize a PPP as part of the FasTracks development – combining light rail, bus rapid transit, development of Denver Union Station, parking, and other improvements – alongside state and federal funding.

The FasTracks Eagle project in Denver is a $2.2 billion public-private partnership to construct two new commuter rail lines.  The project combined several DOT funding and financing mechanisms – Federal Transit Administration’s New Starts, Private Activity Bonds, and a TIFIA loan – in addition to other Federal, State, and local resources and private investment. 

The Eagle project is using a “design-build-finance-operate-maintain” contract under a 34-year concession.  Denver will retain ownership of the assets, set fares and fare policies, and keep all project revenues.  Denver will make payments to the private investor and operator (“concessionaire”) based on performance metrics. 

 

Case Study: Florida

Florida has been leading the way on PPPs since 2001. In 2007, the State of Florida established the Office of Public-Private Partnerships; since then the state has completed over $6 billion in innovative projects.

Florida is now using a public-private partnership to complete the $1.1 billion Port of Miami Tunnel Project that will link the Port of Miami with the MacArthur Causeway and I-395 on the mainland. The project, like many PPPs around the country, took advantage of DOT’s TIFIA loan program for a $340 million loan, which in turn leveraged private dollars – a great example of the kinds of partnerships that the new Build America Transportation Investment center will bolster.

 

THE GROW AMERICA ACT

The Highway Trust Fund – which funds a significant portion of the construction and capital repairs of our surface transportation system – is projected to be insolvent by the end of the summer barring Congressional action.  In addition to preventing the Trust Fund from expiring in the short term, the President has clear that we need long-term action and predictable funding to provide certainty to states and communities, help American businesses, and grow our economy. 

  • In spring 2014, President Obama transmitted to Congress his vision for a long-term solution.  The GROW AMERICA Act, a $302 billion, four-year transportation reauthorization proposal provides increased and stable funding for our nation’s highways, bridges, transit, and rail systems, ends the cycle of short-term, manufactured funding crises and builds confidence in the public and private sector.
  • The Administration’s proposal is funded by supplementing current revenues with $150 billion in one-time transition revenue from pro-growth business tax reform.  In other words, the President’s proposal is fully paid for without increasing the deficit. The President’s proposal will also keep the Trust Fund solvent for four years and increase investments to meet the transportation priorities and economic needs of communities across the country. 
  • The proposal also contains a series of legislative proposals to improve the return on transportation spending and improve safety, including a title on improving project delivery, and the federal permitting and regulatory review process.

The White House

Office of the Press Secretary

Conference Call by Senior Administration Officials on Ukraine

Via Conference Call

4:34 P.M. EDT

MS. LUCAS MAGNUSON:  Hi, good afternoon, everyone, and thanks for your patience.  We have with us today some senior administration officials to talk about the situation in Ukraine and some sanctions on Russia that hopefully you will have seen or will see shortly in a few minutes from the Department of Treasury.

SENIOR ADMINISTRATION OFFICIAL:  Thanks, everybody, for getting on the call.  Today, we have moved to impose additional sanctions on Russia for its actions in violation of Ukraine’s sovereignty and territorial integrity, and my Treasury colleague will speak to that.

Since the beginning of this crisis in Ukraine, we have worked at the same time to impose costs on Russia for its actions while also providing support to the Ukrainian government and people.  Over the last several weeks, I think it’s important to note that the Ukrainian people have taken a number of important steps to determine their own destiny and to build their own democracy.  We saw a successful election held even amidst the violation of their sovereignty and territorial integrity.  The new government, under President Poroshenko, has launched important reforms that could help stabilize Ukraine’s economy and develop Ukraine’s democratic institutions.  And that Ukrainian government has reached its association agreement with the European Union, which, of course, was the initial point that led to the popular dissatisfaction with the previous Ukrainian government.

We have increased our own support for Ukraine both through the provision of nonlethal assistance to their military, which has ramped up over the last several weeks, and also through our support for an economic stabilization package.  The Ukrainian government has also demonstrated a willingness to de-escalate and pursue a peaceful resolution to this situation in eastern Ukraine. 

But what we have seen time and again from Russia is a refusal to follow through on necessary commitments and conditions for de-escalation.  We have made clear time and again that if Russia does not respect Ukraine’s sovereignty and territorial integrity and does not in good faith follow through on necessary commitments for de-escalation that we’ll move to impose additional costs.  That’s what we’re doing today. 

We have also coordinated every step very closely with our European allies, in particular, and in recent days, President Obama has spoken with leaders such as President Hollande of France, Chancellor Merkel of Germany, [and] Prime Minister Cameron to discuss the situation in Ukraine.  The Europeans, of course, are meeting today in Brussels, and we have been very clear in both discussing with them the types of steps that we’re taking today and coordinating our actions both in support of the Ukrainian government and in imposing costs on Russia.

And with that, I’ll turn it over to my Treasury colleague to go over the sanctions package.

SENIOR ADMINISTRATION OFFICIAL:  Great.  Thanks and good afternoon, everyone.  Thanks for joining.  Over the last several months and especially over the past several weeks, the Russian government has chosen to escalate its unlawful activities in Ukraine and has chosen to do so in the face of very clear messages that continuing down that path will lead to increasing sanctions pressure.  And that is precisely what we are doing today.

We are announcing a broad-based package of actions that will affect firms across key sectors of the Russian economy -- the financial services, energy, and defense sectors -- while also imposing sanctions against a set of senior Russian officials in the misappropriated business in Crimea.

Let me take a moment to go into some detail about the actions we’ve taken today.  First, under Executive Order 13662, Secretary of the Treasury Jack Lew determined to apply sanctions against entities in the financial sector and the energy sector of Russia.  And we have then imposed a set of prohibitions on two major Russian banks and two major Russian energy firms. 

Executive Order 13662, which was signed by the President on March 20th of this year, allows the Secretary to identify sectors of the Russian economy as subject to sanctions and then to impose sanctions on specific persons operating within those sectors. 

As I noted earlier today, Secretary Lew made a determination that persons operating within Russia’s financial services sector and energy sector may now be subject to targeted sanctions.  And following that determination, Treasury imposed sanctions that prohibit U.S. persons from providing new financing to two major Russian banks -- Gazprombank and VEB -- and two Russian energy firms -- Rosneft and Novatek -- effectively limiting their access to the U.S. capital markets.

Now, with regard to the financial sector, Treasury imposed measures prohibiting U.S. persons from dealing in new equity or new debt of longer than 90 days’ maturity for the two banks I listed -- Gasprombank and VEB.  As a practical matter, this will close the medium- and long-term U.S. sources of financing for these banks.  This is a significant step.  These financial institutions are among the largest in Russia and routinely access the U.S. capital markets to finance their operations.  They will no longer be able to do so.

Now, with regard to the energy sector, Treasury imposed measures that prohibit dealing in new debt of longer than 90 days’ maturity for the energy firms of Novatek and Rosneft.  These firms are among the largest energy firms in Russia.  Now, as with the financial institutions, we have not blocked the property of these companies, nor prohibited transactions with them beyond the specific financing restrictions I mentioned.  But I do want to be clear that the steps that we have taken today to restrict access to the U.S. capital markets for these two major banks and two major energy firms is what we are doing today.

We have the capacity in our sanctions programs to expand the scope of the prohibitions and the list of the entities affected if the situation warrants.  And the Secretary of the Treasury determination to open the financial sector and the energy sectors of Russia for sanctions will remain in place. 

Second, Treasury today has designated and blocked the assets of eight Russian state-owned defense technology firms, pursuant to Executive Order 13661, for operating in the arms or related materiel sector of Russia.  Those firms are listed in our press release, so I won’t go through each of them individually.  But the designated firms are responsible for the production of a range of materiel from small arms to mortar shells to surface-to-air missiles to tanks. 

Third, Treasury today designated and blocked the assets of two entities and one individual, pursuant to EO 13660, for threatening the peace, security, stability, sovereignty, or territorial integrity of Ukraine.  They include the so-called Lugansk People’s Republic and the so-called Donetsk People’s Republic, as well as Aleksandr Borodai, the self-declared prime minister of the Donetsk People’s Republic.

Fourth, we have imposed sanctions on Crimea-based Feodosiya Enterprise, which is a key oil shipping facility in the Crimean Peninsula that the separatists’ self-styled Crimean parliament nationalized.  This is misappropriated assets of Ukraine.  And because of this designation, no U.S. person can deal with Feodosiya Enterprise.

**Fifth and finally, Treasury designated four Russian government officials pursuant to EO 13661.  They include Sergey Beseda, the head of Russia’s Federal Security Service; Oleg Savelyev, Russia’s Minister for Crimean Affairs; Sergei Neverov, the Deputy Chairman of the State Duma of the Russian Federation; and Igor Shchegolev, an aide to the President of the Russian Federation. 

I want to stress the significance of the steps we’ve taken today, particularly Executive Order 13662, which authorized the Secretary to identify sectors of the Russian economy for sanctions and then to select specific targets for action.  This is a broad, flexible, and potent sanctions tool, and we have used this authority today for the first time and have done so in a precise yet powerful fashion by going after these two Russian banks and two Russian energy firms and their ability to access the U.S. for financing.  And as I noted, we have the ability to expand the scope of the actions we took today if Russia continues its provocative behavior. 

From the very beginning, we have been thoughtful and strategic in our approach to sanctions and have carefully calibrated our steps to impose increased pressure on the Russian government while limiting the negative spillover risks to the global economy.  Today’s steps will only further exacerbate Russia’s economic problems.  And these problems are quite substantial.  Already market analysts are forecasting significant and continued outflows of both foreign and domestic capital from Russia and a further weakening of growth prospects for this year. 

The IMF has downgraded Russia’s growth outlook to 0.2 percent for this year and suggested that recession is not out of the question.  Since the start of this year, Russia’s stock market has declined by 2 percent while other emerging stock markets have gained as much as 20 percent.  The Russian ruble has depreciated by over 4 percent since the beginning of the year despite substantial market intervention by the Russian Central Bank and multiple interest rate hikes.

The Central Bank of Russia has spent nearly $51 billion -- about 10 percent of its foreign exchange reserves -- in an effort to defend the value of the ruble since the start of this year.  The yield on Russia’s 10-year government bond is up almost 90 basis points.  The IMF expects as much as $100 billion in capital flight from Russia this year and the World Bank put that estimate at $130 billion.  So all together, the actions that we have taken thus far have had a significant impact on the Russian economy and we expect that the steps that we have taken today, including the steps against the Russian banks and the Russian energy firms, will only exacerbate that situation.

So with that, why don’t I conclude and turn it over to my colleague from the State Department.

SENIOR ADMINISTRATION OFFICIAL:  Thanks very much.  Just to remind that at no stage has this been our preference or, frankly, the preference of the Ukrainian government to have to move in this direction.  As the President has said from the beginning, there is an off-ramp here for Russia if it would choose to take it, and we have consistently supported the Ukrainians in pursuing a diplomatic path -- notably when the President first met then-President-elect Poroshenko on his European trip, and during the Normandy stop when President Poroshenko first presented his peace plan. 

At that stage, he was very much hoping that with a broad outreach to the Russian Federation and a diplomatic process supported by the OSCE, the U.S. and the EU, he would be able to achieve his major goals, which were to have a bilateral cease-fire between his forces and the separatists; to have a release of hostages, to have a sealing of the border monitored by the OSCE, and to have an end to the flow of weapons crossing the border.

And, in fact, when he was unable to negotiate a bilateral cease-fire within the first two weeks in office, he called a 10-day unilateral cease-fire.  Unfortunately, the Ukrainian side honored that and the separatists did not.  There were some 100 violations of the cease-fire.  More heavy weapons found their way into Ukraine.  And the Ukrainians lost three border posts to separatists during that time.

Since then, as you know, the Ukrainians have resumed their efforts to secure their country.  They have made some significant gains on the ground, including the liberation of key towns, including Slavyansk and Svyatogorsk, where they are now in the process of restoring public services.  But the fight goes on. 

And even in the face of all this diplomacy that’s been going on and very high-level efforts by us and by key members of the European Union, notably France, Germany, the U.K., in fact, over the past month, the flow of heavy weapons and support for separatists from Russia has actually increased.  You will have seen on social media over the last week convoys of Russian tanks, armored personnel carriers, infantry combat vehicles, Grad rocket launchers, Howitzers, self-propelled mortars flowing into Ukraine. 

On July 14th, Ukrainians lost an An-26 transport jet, which was shot down from an altitude of 21,000 feet, with eight crew on board.  And only very sophisticated weapons systems would be able to reach this height.  On July 15th, as you know, several bridges into Donetsk were taken by separatists, as well as continued attacks on border checkpoints.  So the concern has been that not only has Russia not availed itself of the diplomatic openings to deescalate, but the support for separatists has increased. 

We would also note the increasing sophistication of the military tactics that we’re seeing in recent weeks, indicating training and coordination from outside; and then, also, just to remind that the three leaders of the separatist movement -- Mr. Gubarev, Mr. Strelkov, and Mr. Borodai -- or supposed leaders of the separatist movement are, in fact, all Russian citizens. 

So from that perspective, after more than a month of asking us, in fact, to withhold further sanctions while they tried to implement their peace plan, the Ukrainians have now urged both the U.S., Canada, and the EU to take further sanctions measures, because the Russians have not responded to the repeated diplomatic efforts led by the Ukrainians and supported by us.

One final point:  The European Union is meeting at head-of-state level this evening.  We do expect that they will take some action today, but they are still in their meeting.  So watch that space.  I will pause there.

Q    Thank you very much.  Is there an issue, though, despite what you expect to come from Brussels, with the fact that the Europeans are not expected to be as forceful as the U.S. has been?  And to what extent do you think the tension with Angela Merkel has exacerbated this and made it more difficult for the President to get support from his allies?

SENIOR ADMINISTRATION OFFICIAL:  I’ll say a couple of things.  First of all, on your last point, I would not suggest that there has been any effect whatsoever with respect to Germany’s stance on this issue and the recent revelations about certain intelligence activities.  The fact of the matter is actually that Angela Merkel has been at the forefront in Europe in pressing for a strong response to Russia’s violation of Ukraine’s sovereignty and territorial integrity.  And we believe that Germany has played a very significant and constructive role in leading Europe to, again, insist upon respect for Ukraine’s sovereignty and territorial integrity.  And in fact, in their conversation just yesterday, the President was able to discuss the types of steps that we were contemplating taking and to hear from Chancellor Merkel about the types of steps that Europe is considering as well.

With respect to the broader point, we have been moving in coordination with Europe.  It is the case that the United States has been very forceful in the sanctions that we have imposed.  The Europeans have also moved with us in imposing sanctions against different individuals and entities.  I think the broad statement of common purpose with respect to signaling to Russia a cost through broad-based sectoral sanctions for the most egregious potential escalation has served as a deterrent and remains in place.

With respect to actions that we’re taking given Russia’s ongoing support for separatists, again, we do expect the Europeans to take action.  We’ve always said that we’ll take different types of actions based on our approach to sanctions, but we’re pleased that there remains close coordination.  There remains coordinated support for Ukraine.  And I’d note, again, that the EU reached an agreement with respect to the association agreement, which is the root of this crisis, earlier this year. So they’ve been forthcoming in their support for Ukraine, and they have moved to impose costs and pressure on Russia. 

Even as it is the case that in the European Union in which you need to reach agreement among all the members, necessarily it takes time and effort to tee up different sanctions packages. 

But I don’t know if my colleagues have anything to add to that.

SENIOR ADMINISTRATION OFFICIAL:  The only thing I would add is that some of the individuals and entities at the end of our list, as outlined by speaker one, that we are sanctioning today, are entities that the EU has already sanctioned -- the Luhansk People’s Republic, Donetsk, some of the Russian’s -- Feodosia.  So there has been a little bit of a yin-yang where at times we’re catching up with them; at times, they’re catching up with us.  But I don’t want to prejudge what they’re going to decide tonight because it’s very much a work in progress. 

SENIOR ADMINISTRATION OFFICIAL:  And if I could just add one final point, which is that the financial institutions, in particular, that we sanctioned today and have cut off from equity financing from the U.S. and from debt financing of 90 days or greater maturity, they are heavily skewed in their financing and their capital structure to the dollar.  And so the impact of these sanctions even if Europeans don’t match them precisely, will be quite significant because of the dominance of the dollar in the financing for those firms.

Q    We wanted to ask about the significance of the debt market financing.  It sounds like from what you’re saying if it’s over 90 days that it’s going to allow these companies to continue doing their business, just not get the longer-term loans.  Am I correct on that?  And also, to the extent of these sanctions being against Gazprom, Rosneft, et cetera, it’s just limited to the 90 days and companies like Exxon will not be prohibited from conducting business with them under this -- correct?

SENIOR ADMINISTRATION OFFICIAL:  So let me take that.  The prohibition is on for the financial institutions, so for Gazprombank and VEB, on any equity financing and any debt financing over a 90-day equity. 

So essentially, we’re not going after the short-term or the overnight financing, but the financing that they need as part of their capital structures to roll over on a regular basis that’s of longer than 90-day maturity in debt, they will not be able to access the U.S. markets and no U.S. person will be permitted to lend to those financial institutions.  It will increase their cost of borrowing.  They’ll have to look elsewhere for dollars, if they can find them.  For their financing, they will likely have to turn to the Central Bank of Russia, which has dollar reserves, as a way to fill the hole that they’re not going to be able to fill when their financing needs come up as their debt rolls over.   

On the energy firms, it, as you noted, applies just to debt, not to new equity infusions.  How that applies in any particular circumstance we’ll let others who are involved with those firms determine.  But, again, it will prohibit any debt financing for those energy firms of 90 days or greater maturity.

Q    I have a couple of things.  Firstly, how much of an effect do you expect all of this to have on U.S. businesses?  And we all know that the U.S. businesses are against this action.  And then, secondly, in terms of sanctioning the Donetsk and the Luhansk Republic, does this, in effect, amount to recognition of those entities? 

SENIOR ADMINISTRATION OFFICIAL:  I’ll say a couple of things, and then my colleague may want to add.  First of all, on your last question, absolutely not.  It just allows us to target the individuals who are associated with the activities under the self-described names of the Luhansk and the Donetsk People’s Republic.  So it has nothing to do with recognition of those entities.  It has to do with targeting the individuals associated with their actions.

And I’ll turn to my colleague on the first question.

SENIOR ADMINISTRATION OFFICIAL:  I’ll actually respond to both of those questions.  Just one further thought on the designation of the Luhansk People’s Republic and Donetsk People’s Republic, these purported entities.  It will allow us to impose sanctions on anyone who is providing support to any of those entities.  So to the extent that they are seeking to solicit funding, for instance, for their activities, or individuals who are affiliated with those entities, this will go as an opportunity to take action against anyone who is financing those entities or providing other material support to those entities.

In terms of the U.S. business community, what we have heard time and again is that the U.S. business community understands the importance of a robust response to the unlawful activity of the Russian federation in Crimea and in eastern Ukraine.  I think the notion that our businesses are not supportive of the U.S. government being forceful in addressing this significant threat is mistaken.  They, like businesses everywhere, want the burden to be shared, but in terms of understanding that there are burdens to be borne for broader principles beyond just the bottom line, I don’t think our businesses have any difficulty with that notion.

SENIOR ADMINISTRATION OFFICIAL:  Can I just underscore what was said at the beginning about the so-called Luhansk People’s Republic and the so-called Donetsk People’s Republic -- the idea here is that the separatists are trying to create entities that behave like separate governing structures, and as such could conceivably seek outside financing or support.  This ensures that we strangle those efforts.

Q    I have a couple of quick ones.  First of all, I think Alexey Miller, the head of Gazprom, still hasn’t been targeted.  Is that right?

SENIOR ADMINISTRATION OFFICIAL:  We have not -- the list of people who we have imposed sanctions on is known.  He is not on the list.

Q    It seems as if you’ve gone after just about everybody but Gazprom itself.  I mean, Gazprombank is obviously related, but it’s not the same thing as Gazprom.  I’m wondering if the thinking there is that you don’t want to do things that would disrupt energy, energy flows to Central and Western Europe.  And then, a second quick follow-up -- most of us know what the FSB is, but can you explain what the fifth service of the FSB is and why it was targeted for sanctions?

SENIOR ADMINISTRATION OFFICIAL:  We, as a general matter, don’t talk about entities that we have not imposed sanctions on and don’t speculate about who we may sanction.  We talk about those who we have sanctioned, so I don’t really have any comments on Gazprom itself.

SENIOR ADMINISTRATION OFFICIAL:  With regard to the FSB, we sanctioned today the head of the FSB, which is playing a key role, we believe, in organizing the separatists and supporting them and funneling money to them, as well as operational expertise and supporting the recruitment inside of Russia, which has had a significant uptick of fighters and military retirees to participate.

Q    Thanks so much for having this.  I was just wondering about the flexibility of sector sanctions for the two banks and the energy companies –- is that the kind of thing that would likely –- would it be more likely that the Treasury would adjust the companies involved in these sectors, or is it designed to be more flexible in the types of transactions with these entities that are being targeted, which are currently limited to –-

SENIOR ADMINISTRATION OFFICIAL:  I think the financing sanctions that were broken today on those entities will certainly have a direct impact on the entities themselves.  But I think as we've seen in our sanctions efforts throughout the course of this episode, there is broader impact in the Russian economy from steps we have taken as the market recognizes that we are quite serious when we say that we are intent on imposing costs if the Russians don't de-escalate the situation.  So I think we are anticipating both direct costs with respect to those entities and for the market to recognize the seriousness with which we're taking the situation.

Q    I wanted to ask was there any thinking -- I know Brussels was announcing it -- was there any thinking in announcing before they reached a decision?  And just on the new banking and energy sanctions, whether those -- I just wanted to clarify, those allow U.S. individuals to do business with them -- restriction on their capital market?

SENIOR ADMINISTRATION OFFICIAL:  I'll just say one thing about the first question.  We have coordinated closely with our European allies in both the substance and timing of sanctions throughout the last several weeks and months, and we have tended to see the meetings the European leaders and the European Council as important moments to check in on the status of progress and the status of conditions that have been laid out in terms of Russia’s actions.  And so these tend to be natural moments for the United States to take action in coordination with our European allies.

And President Obama, in his recent conversations with the leaders of France, the United Kingdom, and Germany, has discussed both the substance and timing of the type of actions that we're announcing here today -- as recently as in his conversation with Chancellor Merkel yesterday.

SENIOR ADMINISTRATION OFFICIAL:  If I could jump in and fix something that I said earlier -- Sergei Besesda, (inaudible) who is sanctioned today, is a top general -- not the head, but a top general in Russia’s Federal Security Service, the FSB, and reportedly one of the main leaders within the FSB of support for separatists.

And just to build on what was said with regard to the EU, the EU tends to -- in fact, in all cases with regard to Ukraine, has taken its major decisions at the level of heads during heads meetings. 

SENIOR ADMINISTRATION OFFICIAL:  And just to finish up on the last question, the prohibition extends to any transactions related to the financing for the energy firms or the banks in the fashion I indicated.  So over 90 days and any equity financing for the banks.  Beyond that, it does not prohibit transactions with those entities.

MS. LUCAS MAGNUSON:  Thank you, everyone, again for joining.  We'll conclude the call now.  Just as a reminder, all information is attributable to senior administration officials.  Thank you and have a good evening. 

END  
5:08 P.M. EDT

The President Makes a Statement on Foreign Policy

July 16, 2014 | 7:30 | Public Domain

President Obama delivers a statement to the press on foreign policy.

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The White House

Office of the Press Secretary

Readout of the President’s Meeting with the Congressional Hispanic Caucus

This afternoon, the President and Vice President met with members of the Congressional Hispanic Caucus in the Eisenhower Executive Office Building. The President heard from members of the Caucus about ideas for actions to improve our immigration system. The President reaffirmed that he is focused on fixing as much of our broken immigration system as he can within the confines of the law, and has asked Secretary Johnson and the Attorney General to conduct a thorough review that produces recommendations before the end of the summer. The President made clear that regardless of the steps he takes through administrative action, nothing replaces the need for Congress to pass commonsense immigration reform, and he will continue to make the case for swift action by Congress on a comprehensive bill.

The President also emphasized the urgency for Congress to approve supplemental funding to aid the government response to the influx of migrants at the Rio Grande Valley. The supplemental request represents a balanced approach to increasing our law enforcement capacity, ensuring we have resources to offer migrants due process as required by law, and also helping our Central American partners deal with some of the challenges they face back home.  

The situation in the Rio Grande Valley underscores how our immigration system is broken, and Republicans need to stop blocking comprehensive immigration reform so we can fix the system now. In the absence of Republican action, the President has mounted a significant effort to deal with this urgent humanitarian situation. The Administration is focused on addressing these immediate and pressing challenges to make sure we are responding in an efficient and timely way and confronting the root of the problem with top-level diplomatic efforts in Central America. 

The President thanked the Members for their leadership and major accomplishments for the Latino community, including improvements in education, access to health care, and economic growth.

The President Meets with His Climate Task Force

July 16, 2014 | 4:11 | Public Domain

President Obama meets with his State, Local, and Tribal Leaders Task Force on Climate Preparedness and Resilience.

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Read the Transcript

Remarks by the President at Task Force on Climate Preparedness and Resilience Meeting

State Dining Room

2:24 P.M. EDT

THE PRESIDENT:  Well, I want to thank everybody who has been participating in this very important task force.  We’ve got governors, we’ve got mayors, local and tribal leaders.  We’ve got Democrats and Republicans and independents from all the across the nation.  And we are here because we know that climate change is an undeniable scientific fact. 

And these leaders are here because states and communities that they represent are already dealing with the effects of climate change.  They’re seeing rising sea levels, more powerful hurricanes, more intense heatwaves, severe droughts, and wildfires out west.  So this is already happening, and these leaders understand that climate change is a threat to public safety, it’s a threat to public health and to something that we want to emphasize today -- the infrastructure upon which our economy depends.  More severe storms and increased flooding threaten roads and bridges and businesses.  Rising sea levels threaten coastal communities and ports. 

So climate change poses a direct threat to the infrastructure of America that we need to stay competitive in this 21st-century economy.  That means that we should see this as an opportunity to do what we should be doing anyway, and that’s modernizing our infrastructure, modernizing our roads, modernizing our bridges, power grids, our transit systems, and making sure that they’re more resilient.  That’s going to be good for commerce and it’s obviously going to be good for communities.

As a result of this need, I’ve put forward a plan to build our transportation infrastructure and it’s a key part of our Climate Action Plan -- making sure that we’ve got a smarter, more resilient infrastructure that can withstand the effects of climate change. 

And today I’m announcing a series of new steps.  We’re going to do more, including new data and 3D maps to help state, local officials in communities understand which areas and which infrastructure are at risk as a consequence of climate change.  We’re going to help communities improve their electric grids, build stronger seawalls and natural barriers, and protect their water supplies.  We’re also going to invest in stronger and more resilient infrastructure. 

Last month, I announced a new competitive fund -- $1 billion -- to help communities do this.  Today we’re taking steps to make sure that this competition will work.  We’re going to announce the specifics about who can compete, how we can learn from communities that are rebuilding stronger from disasters like Hurricane Sandy and flooding in Colorado.  We want the best ideas to become models for the whole country.  And the idea of this competition is not just the communities that win a grant are able to improve their infrastructure but what we’re also going to be doing is hopefully lifting everybody’s game and making sure that people in their planning are thinking about these issues as they move forward.

So the bottom line is investing in our infrastructure, protecting our communities, ensuring the health and safety of our citizens -- none of this should be a partisan issue.  This is something that Democrats, Republicans, independents all care about and the leaders who are sitting around this table prove that today and prove it every day. 

And I want you to know that you have a partner in me, you have a partner in this administration, and I’m confident that, working together, we can take some common-sense steps to make sure that America’s infrastructure is safer, stronger and more resilient for future generations.  At the same time as we are also tackling the broader problem of climate change and trying to slow the impact of that not just here but around the world.

So I very much appreciate the wonderful participation.  I know that some great ideas have already come out of this.  And I’m looking forward to continuing to work with this group in the future.  Thank you very much.

END
2:29 P.M. EDT

Close Transcript

The White House

Office of the Press Secretary

Remarks by the President on Foreign Policy

James S. Brady Press Briefing Room

5:44 P.M. EDT

THE PRESIDENT:  Good afternoon, everybody.  I want to briefly discuss the important actions we’re taking today in support of Ukraine.  Before I do, I want to take a few minutes to update the American people on some pressing foreign policy challenges that I reviewed with Secretary Kerry this afternoon.

First of all, I thanked Secretary Kerry and our outstanding civilian and military leaders in Afghanistan for their success in helping to break the impasse over the presidential election there.  Thanks to their efforts and, of course, thanks to the Afghans and the courage of the two candidates, both of whom I spoke to last week, the candidates have agreed to abide by the results of a comprehensive and internationally supervised audit that will review all the ballots, and to form a unity government.  If they keep their commitments, Afghanistan will witness the first democratic transfer of power in the history of that nation. 

This progress will honor both candidates who have put the interests of a united Afghanistan first, the millions of Afghans who defied threats in order to vote, and the service of our troops and civilians who have sacrificed so much.  This progress reminds us that even as our combat mission in Afghanistan ends this year, America’s commitment to a sovereign, united, and democratic Afghanistan will endure –- along with our determination that Americans are never again threatened by terrorists inside of Afghanistan.

Second, John updated me on the negotiations with Iran over its nuclear program.  Over the last six months, Iran has met its commitments under the interim deal we reached last year -- halting the progress of its nuclear program, allowing more inspections and rolling back its more dangerous stockpile of nuclear material.  Meanwhile, we are working with our P5-plus-1 partners and Iran to reach a comprehensive agreement that assures us that Iran’s program will, in fact, be peaceful and that they won’t obtain a nuclear weapon. 

Based on consultations with Secretary Kerry and my national security team, it’s clear to me that we have made real progress in several areas and that we have a credible way forward.  But as we approach a deadline of July 20th under the interim deal, there are still some significant gaps between the international community and Iran, and we have more work to do.  So over the next few days, we’ll continue consulting with Congress -- and our team will continue discussions with Iran and our partners –- as we determine whether additional time is necessary to extend our negotiations.

Third, we continue to support diplomatic efforts to end the violence between Israel and Hamas.  As I’ve said repeatedly, Israel has a right to defend itself from rocket attacks that terrorize the Israeli people.  There is no country on Earth that can be expected to live under a daily barrage of rockets.  And I’m proud that the Iron Dome system that Americans helped Israel develop and fund has saved many Israeli lives.

But over the past two weeks, we’ve all been heartbroken by the violence, especially the death and injury of so many innocent civilians in Gaza —- men, women and children who were caught in the crossfire.  That’s why we have been working with our partners in the region to pursue a cease-fire -- to protect civilians on both sides.  Yesterday, Israel did agree to a cease-fire.  Unfortunately, Hamas continued to fire rockets at civilians, thereby prolonging the conflict.

But the Israeli people and the Palestinian people don’t want to live like this.  They deserve to live in peace and security, free from fear.  And that’s why we are going to continue to encourage diplomatic efforts to restore the cease-fire, and we support Egypt’s continued efforts to bring this about.  Over the next 24 hours we’ll continue to stay in close contact with our friends and parties in the region, and we will use all of our diplomatic resources and relationships to support efforts of closing a deal on a cease-fire.  In the meantime, we’re going to continue to stress the need to protect civilians -- in Gaza and in Israel –- and to avoid further escalation.

Finally, given its continued provocations in Ukraine, today I have approved a new set of sanctions on some of Russia’s largest companies and financial institutions. Along with our allies, with whom I’ve been coordinating closely the last several days and weeks, I’ve repeatedly made it clear that Russia must halt the flow of weapons and fighters across the border into Ukraine; that Russia must urge separatists to release their hostages and support a cease-fire; that Russia needs to pursue internationally-mediated talks and agree to meaningful monitors on the border.  I’ve made this clear directly to Mr. Putin.  Many of our European partners have made this clear directly to Mr. Putin.  We have emphasized our preference to resolve this issue diplomatically but that we have to see concrete actions and not just words that Russia, in fact, is committed to trying to end this conflict along the Russia-Ukraine border.  So far, Russia has failed to take any of the steps that I mentioned.  In fact, Russia’s support for the separatists and violations of Ukraine’s sovereignty has continued.

On top of the sanctions we have already imposed, we are therefore designating selected sectors of the Russian economy as eligible for sanctions.  We are freezing the assets of several Russian defense companies.  And we are blocking new financing of some of Russia’s most important banks and energy companies.  These sanctions are significant, but they are also targeted -- designed to have the maximum impact on Russia while limiting any spillover effects on American companies or those of our allies. 

Now, we are taking these actions in close consultation with our European allies, who are meeting in Brussels to agree on their next steps.  And what we are expecting is that the Russian leadership will see, once again, that its actions in Ukraine have consequences, including a weakening Russian economy and increasing diplomatic isolation. 

Meanwhile, we’re going to continue to stand with the Ukrainian people as they seek to determine their own future.  Even in the midst of this crisis, they have made remarkable progress these past few months.  They held democratic elections, they elected a new president, they’re pursuing important reforms, and they signed a new association agreement with the European Union.  And the United States will continue to offer our strong support to Ukraine to help stabilize its economy and defend its territorial integrity because -- like any people -- Ukrainians deserve the right to forge their own destiny.  

So in closing, I’ll point out the obvious.  We live in a complex world and at a challenging time.  And none of these challenges lend themselves to quick or easy solutions, but all of them require American leadership.  And as Commander-in-Chief, I’m confident that if we stay patient and determined, that we will, in fact, meet these challenges. 

Thanks very much.

END 
5:53 P.M. EDT

The White House

Office of the Press Secretary

Press Briefing by Press Secretary Josh Earnest, 7/16/2014

James S. Brady Press Briefing Room

1:18 P.M. EDT

MR. EARNEST:   Good afternoon, everybody.  Let me do a quick opening statement here and then we’ll get to your questions.

Since he announced his campaign for office, the President has been very clear that we should have a tax code that does not reward companies for moving their operations and jobs overseas, but instead encourages them to invest here in the United States to build businesses and create jobs here at home.  And this is reflected in the President’s budget. 

As Secretary Lew wrote in a letter to Congress last night, the best way to address this situation is through business tax reform that makes investment in the United States attractive and creates incentives for companies to invest here, instead of the current tax code that contains loopholes that companies can exploit to avoid the taxes they owe on U.S. income.  But short of undertaking comprehensive business tax reform, there are concrete steps that Congress can and should take right now.  Senators Wyden and Levin and Congressmen Levin and Van Hollen have supported legislation to address this abuse of our tax system and make it retroactive to May, 2014.  Congress should act on this immediately. 

As the President has said, it’s time to rally around an economic patriotism.  That means instead of protecting companies that are shifting profits overseas to avoid paying their fair share we’re putting people to work here at home, focusing on things like investment in our infrastructure and rebuilding our roads and our bridges and our airports, as the President has been calling for this week.  You can expect that this is a topic you’ll continue to hear about more from the President in the weeks ahead.

With that, Nedra, we’ll go to the questions.

Q    Okay, great, thanks, Josh.  We have a report out of Vienna that the parties to the Iran talks have agreed to extend them past the July 20th deadline.  Can you confirm that?

MR. EARNEST:  I’m not in a position to confirm those reports.  As you know, Secretary Kerry was just in Vienna yesterday.  He has traveled back here to Washington, D.C., to consult with the President and to begin consulting with members of Congress about the way forward. 

Over the last six months, since the Joint Plan of Action took effect, we’ve made tangible progress on a range of key issues in our negotiations with the Iranians.  All of the parties to those talks -- both the Iranians and the United States and the other members of the P5-plus-1 -- have made good on the Joint Plan of Action.  And that means that progress on Iran’s nuclear program has been halted and rolled back in some key respects, and we have been negotiating in good faith to try to reach an agreement. 

There are some gaps that continue to remain and part of Secretary Kerry’s consultations with the President will involve a discussion about the path forward, which reflects the fact that some gaps remain here, just four days before the preset deadline for these negotiations to end.

Q    Do you expect that we’ll hear from the President or get some sort of readout after that meeting?

MR. EARNEST:  Well, it’s certainly a possibility.  But in terms of the content of that meeting and what Secretary Kerry plans to discuss with the President, I think I’ve given you a pretty good preview.

Q    How much longer would -- if you can’t say whether you’re going to extend the deadline, how close are they?  You say there are some gaps, but would a little more time allow them some time to negotiate an agreement?

MR. EARNEST:  Well, I think that’s part of what Secretary Kerry was trying to assess in the conversations that he was having with the Iranians in Vienna over the weekend.  It is clear that their track record over the last six months, I think many people would acknowledge, has been surprisingly favorable and that there has been a legitimate discussion and constructive engagement between Iran and the P5-plus-1.  There were a lot of people who were pretty skeptical about that six months ago.  That skepticism was justified, so I don’t mean to be criticizing it in any way, but the fact is there have been constructive conversations. 

The successful implementation of the Joint Plan of Action has allowed the international community’s concerns about the Iranian nuclear program to be eased at least a little bit -- that’s because we have seen Iran live up to that Joint Plan of Action to halt any progress that they’ve made as it relates to their nuclear program.  And in fact, as a part of the Joint Plan of Action, they’ve even rolled back some key aspects of that program. 

So over the last six months, important progress has been made and there has been a willingness on the part of both the Iranians and the P5-plus-1 partners to live up to that agreement. That is indicative of constructive process.  But nonetheless, there are four days that remain before the deadline and the fact is there are still gaps that remain.  So there are a number of paths forward for all of the parties to consider, and Secretary Kerry is consulting with the President this afternoon to make sense about what path would be in the best interest of the United States.

Q    How close are you to imposing more sanctions against Russia over the Ukraine situation?

MR. EARNEST:  Well, we continue to be concerned about Russia’s actions as it relates to Ukraine, and we have said for quite some time that Russia’s failure to take some of the steps that would de-escalate the conflict in Ukraine put them at risk of facing greater isolation and greater economic consequences.

The President has been in regular touch with his counterparts in Western Europe and other countries around the globe about this situation.  We have acted in the past to impose some economic costs on Russia.  We’ve done that in coordination with our allies in Western Europe, and that coordination is ongoing. 

At this point, I don’t have any new additional sanctions to announce or preview.  I discussed with Major a little bit yesterday how unwise it might be to preview the timing or content of sanctions -- it would undermine their effectiveness.  But I do know that European leaders are meeting today to discuss a range of issues, including this specific issue.

Q    And are you prepared to go it alone on sanctions, depending on the outcome of the European meeting?

MR. EARNEST:  Well, what we are prepared to do is to continue to coordinate with our allies and take the kinds of steps that we feel are necessary in response to Russia’s refusal to take some pretty common-sense, basic steps to de-escalate in the conflict in Ukraine.

Jim.

Q    Josh, getting back to Iran, it sounds like from what you’re saying that their behavior, their contributions to the talks may merit an extension of some sort.  Is that what you’re saying?

MR. EARNEST:  I think what I’m saying is just pointing out that Iran, to the surprise of some, has lived up to the commitments that they made in the Joint Plan of Action.  That’s significant because the commitments they made in the context of that Joint Plan of Action involved halting their nuclear program and even rolling back some key aspects of that nuclear program.  That addressed many of the concerns that were held by members of the international community about Iran’s intentions as it relates to their nuclear program.  So that was a positive step. 

The other positive step that we’ve seen over the last six months is that there has been a legitimate negotiation underway among Iran and the P5-plus-1 partners about trying to resolve the international community’s concerns about the Iranian nuclear program. 

So those are two things that many people at the beginning of this process predicted were pretty unlikely to happen.  Again, their skepticism about these talks was well-founded.  Their skepticism about Iran’s willingness to live up to the terms of the Joint Plan of Action was also well-founded.  But over the last six months, Iran has demonstrated a willingness to do those things.  The question now is what do we do, considering we’re four days ahead of the deadline and gaps still remain.

The President and the Secretary of State are discussing the possible paths forward this afternoon.  There will be consultations.  I understand there actually have already been a couple of conversations between senior administration officials and members of Congress on this issues. 

I should point out the only reason that Iran is at the negotiating table is because the United States has put in place, in partnership with Congress and under the leadership of the President, some very strict sanctions against Iran that posed significant economic consequences for their failure to live up to the international community’s expectations as it relates to their nuclear program.  So we’ve worked successfully to implement those sanctions that brought Iran to the table.  We’ve had a constructive six months, but it does leave open the question about what the path forward is and that’s something that’s under discussion today.

Q    And I asked you a couple of days ago about Governor Martin O’Malley’s comments about the administration’s plan for dealing with the young migrants down at the border.  He was critical of the administration’s plan and I understand that on Friday evening he had a conversation with Cecilia Muṅoz about his comments.  What did she say to him about how the White House felt about his comments?

MR. EARNEST:  Well, Jim, I’ve seen some of the reports, including your own, in which the details of that conversation leaked out.  From the podium here, I’m not going to be in a position to share the details of a private conversation between a senior White House official and a prominent governor of an important state.

Q    The conversation occurred?

MR. EARNEST:  The conversation occurred, and I think Governor O’Malley’s spokesperson confirmed that.  In fact, I think Governor O’Malley himself may have confirmed that.  What this administration has done over the last several weeks has been in regular touch with state and local officials all across the country to enlist their support and their tangible contribution to dealing with the situation that we’ve seen at the border.

You’ll recall that the President, one week ago today, traveled to Texas, and while he was there he visited with the Governor of Texas, the county judge in Dallas County, the Mayor of Dallas and some other local officials to talk about what citizens in that community were doing to provide for the humanitarian needs of those who had been apprehended at the border. 

So this is part of a regular series of conversations that the White House has been engaged in.  But, again, in terms of the details of the conversation with Governor O’Malley I’m just not in a position to discuss them from here.

Q    One thing that he told us, he still takes issue with the administration’s plans and he feels that those children should be treated as refugees first.  And he said at one point during an interview that, “We do not return kids who find themselves on our doorstep back to war-torn or famine-wracked places where they face certain death.  I think we have to act like Americans.”  I think he is saying that Americans should be treating these children better than they’re being treated.

MR. EARNEST:  It’s the position of this administration, Jim, that our treatment of these individuals who have been apprehended at the border should be in line with our values as a country.  Our values as a country dictate that these -- the basic humanitarian needs of these individuals be met. 

There is an aggressive effort underway to make sure that detention facilities are to appropriate standards.  Second, we also want to make sure that the individuals who have been apprehended have access to due process proceedings.  That is something this administration is committed to.  That is something that is always required by law.  And we’ve taken some steps to try to make sure that that due process is functioning as well as it should.  We have concerns about that.  That’s why we’ve put forward this supplemental appropriations request to get additional resources that could make that system work better.

The third thing, though, is that this administration is also committed to enforcing the law.  And that means that after going through that due process proceeding, if an immigration judge determines that an individual does not qualify for humanitarian relief, then that person will be repatriated and sent back to their home country.  That, I think, is -- that is the approach that this administration has taken and it is consistent with the kinds of values that Americans believe are important.

Q    You’re having a lot of Democrats over here this afternoon -- the entire caucus, the Congressional Hispanic Caucus -- to talk to them in part about this border emergency.  And it sounds as if you have a lot of Democrats who are very uncomfortable with your plans for dealing with these kids.  Isn’t that fair to say?

MR. EARNEST:  I don’t think that it’s fair to say.  I think that there is widespread recognition among members of both parties that we’re dealing with a serious situation at the southwest border, that these are thorny policy problems, and the administration is working through in a very constructive way that’s in line with our core values to deal with it.

And that is why you’ve seen the President take executive action to move additional resources to the border.  It’s why you’ve seen the President make a specific request of Congress to provide additional resources so that we can hire immigration judges and asylum officers who can make sure that those who are apprehended at the border have access to due process.  You’ve also seen the administration request additional resources that could be used to provide for the basic humanitarian needs of these individuals. 

The President has also asked for additional authority so that the Secretary of Homeland Security can make the kinds of decisions that are necessary at his discretion to enforce the law even more efficiently.  We’ve also sought additional authority from Congress to crack down on these criminal networks that are facilitating so much of the illegal migration that we’ve seen in recent weeks.

So this administration has taken a whole-of-government approach to deal with this challenge, but we are committed to continuing to address this challenge in line with our core American values that we hold dear in this country.

Q    And I’m sorry, not to belabor this, but these kids are not refugees in the view of this White House, is that what you’re saying?

MR. EARNEST:  In the view of this White House, an immigration judge should make the determination about whether someone qualified for refugee status.  That’s certainly not a declaration that I’d be willing to make from here.

Let’s move around a little bit.  Cheryl.

Q    Yes, if I could follow up on your opening comments.  You said to expect more in the weeks ahead.  Does that mean a new tax proposal from the White House?  Or are you going to be talking about it more -- what do you mean by that?

MR. EARNEST:  I think you’ll hear the President talk about it a little bit more.  There is a proposal for corporate tax reform in terms of principles that we’ve already put forward.  There are a couple pieces of legislation that I referred to in my opening remarks that Democrats on Capitol Hill are considering. We’re supportive of their efforts to make progress on legislation like that.

In general, the President believes that this is a pretty important principle, this idea of an economic patriotism where we’re rewarding companies who are investing here in America and not allowing a tax system to persist that only serves to incentivize companies who are looking to ship jobs overseas.  That is a system that has its priorities backwards.  And so this President is committed to try, working with members of Congress, to rearrange those priorities in a way that are in the best interests of this country and, most importantly, in the best interests of middle-class families in this country.

Q    Is the President still interested in using some of the savings from tax reform to help pay for infrastructure?  Is that where the President is --

MR. EARNEST:  Well, we have put forward this specific plan. This is one idea that the administration has put forward to close some loopholes in the corporate tax system that benefit only the wealthy and the well connected.  That would raise some substantial revenue that could be used to rebuild and modernize our infrastructure -- infrastructure that everybody benefits from. 

So that’s the kind of common-sense plan the President has put forward.  That’s merely one idea.  I know that there are a range of ideas out there.  But I think the reason that I wanted to begin the briefing today with that statement is to reinforce the principle that’s at stake, and this idea of an economic patriotism that aligns our nation’s policies with the best interests of middle-class families is the way to ensure that our country remains as strong as it is and continues to get stronger.

One of the strengths of our economy is a vibrant and growing middle class.  And we want to make sure that we’re growing our economy from the middle out.  And one way you could do that is to close loopholes that only benefit the wealthy and well connected, and invest that revenue in infrastructure that everybody uses.  That’s a pretty American idea.  It’s one we’d like to see get some bipartisan support.

Roger.

Q    Back to the sanctions.  Is the administration making any calls today to business leaders to warn them of things coming ahead, such as JPMorgan or any of the financial institutions?

MR. EARNEST:  I don’t have any specific calls to read out from here, Roger.

Q    Okay.  Let me follow up.  You mentioned at the top that things still needed to be coordinated and they were still going on right now.  Will they be done coordinating after 3:00 p.m. this afternoon when we could use –- (laughter.)

MR. EARNEST:  That’s a very clever way of asking that question.  As I mentioned to Steve, I think, it would be pretty unwise for us to signal -- to send a very clear signal about the timing or content of a potential sanctions regime.  That would only give those who are subject to sanctions the opportunity to try to evade them before the regime was put into place. 

So I’m not going to be in a position to talk about timing or content of any sort of sanctions regime today.  But suffice it to say that we have not seen the kinds of steps that we would like to see from Russia to de-escalate the conflict in Ukraine.  And we’ve been pretty clear about what those steps are.  That’s making sure that they shut down the border that has allowed the transfer of heavy weapons from Russia to pro-Russian separatists. We have not seen President Putin take the kinds of steps that we’d like him to take to encourage the separatists to lay down their arms and abide by the cease-fire proposal that’s been put forward. 

So there are some clear steps that we’ve asked Russia to take that they haven’t taken, and that is what has elevated the risk that Russia faces right now as it relates to additional economic costs that could be imposed by the international community.

Q    That sounds like a yes to me.

Q    Yes, sounds like it.

MR. EARNEST:  I’m sorry?

Q    It sounds like a yes to me.

MR. EARNEST:  What’s that?

Q    Imminent.

MR. EARNEST:  Again, I’m not going to be in a position to talk about any timing or anything.

Nadia.

Q    The cease-fire didn’t seem to work -- or just broke down – so, 200 Palestinian dead, one Israeli so far.  What’s the latest that the administration is doing to reach a cease-fire, and how urgent are you dealing with this?

MR. EARNEST:  Nadia, the situation in Gaza is very urgent.  We are concerned about reports of loss of life on both sides of the border.  That’s why we have encouraged Israeli and Palestinian leaders to try to resolve this situation as soon as possible, at least in terms of putting in place the cease-fire that originally was put in place in November of 2012.

Fortunately, the Egyptians have floated up a proposal that the Israelis readily accepted.  We have not seen, however, that lead to a decision by Hamas and other groups in the Palestinian-held areas to stop firing rockets aimed squarely at civilians on the Israeli side. 

So we continue to be concerned about this situation.  Senior administration officials have continued to be in touch with leaders and senior officials in countries throughout the region, and this is something that continues to be a top priority.  There are a lot of civilians, again, on both sides of the border who are caught in the crossfire right now, and our thoughts and prayers are with those who have been injured and with the families of those who have been lost.  And we are encouraging both sides to abide by this cease-fire so that we can reduce the risk that is currently being endured by innocent civilians on both sides of the border right now.

Q    So are you blaming Hamas for not accepting the cease-fire?

MR. EARNEST:  We certainly would like to see Hamas accept the cease-fire.  We certainly would like to see Hamas stop firing rockets aimed squarely at innocent civilians in Israel.  There is no doubt about that.

Q    On Syria, just quickly.  President Assad made a grand speech today, starting his third term in office.  Basically, where is the negotiation that -- you keep talking about that the only way to end the crisis is through a transitional government. What incentive for President Assad to enter a third round of talks?  And will the President call on him to step down?

MR. EARNEST:  Well, let me say that -- I mean, we have -- well, let me say something that we’ve said before, which is that the so-called election that was hosted in Syria was nothing more than a farce.  And we’re certainly disappointed to see Mr. Assad continue to indulge in the charade related to that exercise.

Unfortunately, what we’re seeing is we’re seeing people in his country who are starving and besieged in the capital.  We see Syrians who are dodging barrel bombs in Aleppo and fleeing across Syria’s borders in large numbers seeking refuge.  This has had a terribly destabilizing impact on the region. 

That’s why you’ve seen this country step forward as the largest donor of humanitarian assistance to try to meet the needs of those who are fleeing violence in Syria.  We have offered that support to our partners in the region who are bearing a pretty significant burden as they try to meet the basic humanitarian needs of those individuals. 

What we’ve also done is we’ve also worked closely with the moderate opposition in Syria to try to build them up and give them the capacity to withstand the brutal attack from the Assad regime, but also to try to facilitate the kind of consensus among the moderate opposition that’s required to negotiate an end to this situation. 

Again, this is also a situation where we’re seeing innocent civilians who are being killed, and that is terribly tragic.  It’s something that has been going on for far too long, and it is why you’ve seen the United States of America take the serious steps that we’ve already taken to try to bring that conflict to an end.  Again, there’s not a military solution, though, as you alluded to in your question.  This is going to require some tough diplomacy.  And that’s something that we whole-heartedly support.

Justin.

Q    I wanted to ask you about two separate things that are going on up on Capitol Hill.  The first one was what happened in the Oversight Committee today.  It seemed like the big question coming out of it from Chairman Issa was whether the White House would formally assert executive privilege to keep David Simas from having to testify.  So I’m wondering if it comes to that, if that’s something you guys would do.  And then if more generally you could talk about what happened today and maybe even opine just on Chairman Issa’s term, which is kind of coming to an end at the end of this session, as committee chair.

Q    Maybe a grade? 

Q    Opine away.

MR. EARNEST:  Opining is an opportunity I’ll never turn down.  (Laughter.)  So I appreciate the opportunity.  Well, let me start by saying that we’ve been very forthcoming in describing the role of the Office of Political Strategy and Outreach, including sending White House officials up to the committee to brief them at their request as to how the office operates in full compliance with the Hatch Act. 

Now, it’s notable to me that White House lawyers attended this briefing, traveled up to Capitol Hill to answer all of the Chairman’s questions that he may have about the situation, but, unfortunately, that the Chairman himself didn’t actually show up for the hearing or for the briefing.  So that was something we certainly were disappointed by.  This was after the Chairman sent four separate letters, 32 pages’ worth of questions and concerns that he was raising, but he didn’t want to find time in his schedule to participate in the briefing from White House officials who came prepared to answer his questions. 

Q    Well, it was a staff-only briefing, though, right?  That’s what Issa’s office said. 

MR. EARNEST:  Well, it’s Chairman Issa’s name that’s on the door.  It’s his name that was on the letterhead of the letters.  I assume that he signed them.  He professes when he’s talking to all of you that he has very serious concerns.  But yet, when it came time to actually talk about the substance of his baseless accusations, he wasn’t there to actually engage in that conversation. 

So the point is this:  There has not been a single shred of evidence that’s been presented to raise any concerns about the conduct of those who work in the Office of Political Strategy and Outreach.  In fact, what you saw today was the Director of the Office of Special Counsel submit testimony indicating that they were in full compliance with the Hatch Act. 

So this is, I think, more of the kind of shenanigans that Chairman Issa has been engaged in that I think has undermined the credibility of his committee, unfortunately; that throwing out subpoenas like candy on Halloween has not served the functioning of that committee very well.  It also has, I think, understandably, caused a lot of people to tune him out.  And I think that’s probably a source of some frustration to him. 

But the fact is this administration believes firmly in the principle of oversight.  Congress has a responsibility to conduct oversight.  That’s why, in spite of the questionable credibility of many of these claims, and even some of the individuals who are making them, this administration has sought to cooperate with those questions and with those requests.  And we’re going to continue to do so, not because those questions have any legitimacy, but because the broader principle of congressional oversight is an important one.

Q    And on executive privilege specifically, would you guys be willing to assert that formally if it came to it?

MR. EARNEST:  Well, again, based on our willingness to answer all these questions and based on the inability of the committee to marshal any shred of evidence of wrongdoing, I’m not sure that either side is going to need to resort to that.  But, again, we stand ready to answer the kinds of questions that are being asked, even if the other side doesn’t appear to be taking them very seriously.

Q    And just on one other thing that’s going on, on the Hill -- both House and Senate Democrats today have kind of introduced legislation that would address the Hobby Lobby decision.  Minority Leader Nancy Pelosi made it very explicit that House Democrats see this as kind of a key part of their effort to win House seats in the fall.  So I’m wondering if President Obama is going to be engaging on any backing of this effort or get involved in this push by Democrats.

MR. EARNEST:   Well, I have read some reports of the Middle Class Jump Start plan that House Democrats have put forward today.  It embodies the kinds of values that the President thinks should be prioritized in our broader political debate.

What House Democrats are saying is they’re saying that middle-class families all across the country should be at the center of the political debate in Washington, D.C.  And I think that that commitment is backed up in the approach they’ve taken. We’ve seen Democrats on Capitol Hill ardently advocate for things like raising the minimum wage, ensuring that equal pay is paid for equal work.  These are the kinds of principles that are important to middle-class families, and they’re important to Democrats in this building and Democrats up on Capitol Hill. 

Unfortunately, we’ve seen a different approach that’s taken by congressional Republicans who have resorted to a taxpayer-funded lawsuit against the President merely for trying to advance some of these initiatives. 

So the President is pleased to see House Democrats put forward such a clear articulation of the kinds of values that make the Democratic Party and the United States of America so strong.  And the President is looking forward to continuing to work with Democrats up on Capitol Hill to fight and make progress on these kinds of priorities that are so important to the success of middle-class families all across the country.

Mark.

Q    Josh, can you go beyond the readout from last night and tell us about the tone of the phone call between President Obama and Chancellor Merkel?

MR. EARNEST:  There’s not a whole lot of insight that I can share about that telephone call.  As you know, the President and the German Chancellor speak with some frequency.  I do know that the President had the opportunity to congratulate the Chancellor on her country’s big win in the World Cup.  The President is pleased with the strong personal relationship that he has with Chancellor Merkel.  That is the foundation of what is a very important working relationship between our two countries.  We’re pleased with the ability of those two leaders to communicate and represent their country’s interest to one another.  It serves both countries pretty well.  I understand that overall, it was a pretty friendly, cordial conversation. 

Q    Closer to friendly and cordial than frosty and chilly?

MR. EARNEST:  I haven’t heard anybody else describe it that way.

Q    Well, I wasn’t describing, I was asking.

MR. EARNEST:  I would describe it as a friendly and cordial conversation.

Let’s go to Stephen, and then I’ll come back to you.

Q    So could you opine on the meeting in Brussels at which the EU threatened new sanctions against Russia, but stopped short of the kind of phase three economic sanctions that would be most harmful to the economy?  Doesn’t this undermine any more stringent steps the U.S. might take?

MR. EARNEST:  Well, my guess is there’s probably a long line of European spokespeople who would prefer to opine on that meeting, but I’ll take a shot.  What we have been engaged in for quite some time is an effort to work closely with our partners and allies in Europe to ensure that we’re presenting a united front to Russia.  It’s important that every nation in the world, including Russia, observes the basic territorial integrity and sovereignty of free nations.  And the activities that we’ve seen from Russia along their border with Ukraine run contrary to that principle.  And that’s why you’ve seen some important steps that have already been taken by the United States, in concert with our allies, to impose economic costs on Russia. 

Russia has continued that destabilizing activity, and that puts Russia at risk of facing additional economic consequences.  That’s been the subject of a number of conversations between the President and individual leaders in Western Europe for several weeks now. 

In terms of the conversations that are ongoing in Brussels right now, I don’t really have any sort of reaction from here other than to say that we’re going to continue to closely coordinate and consult with them about the way forward.

Carol, you had a follow-up on something?

Q    Yes.  The readout said that the President and Chancellor Merkel exchanged views on intelligence issues.  Presumably, that means they had a discussion about what’s recently been in the news.  Can you give us any flavor for what the President had to say to her and if he updated her on how the U.S. is looking into this, or anything along those lines?

MR. EARNEST:  I’m afraid, Carol, I can’t shed any additional light on that conversation.  As is the case between two countries that have sophisticated intelligence operations, it’s our view that differences about those activities should be resolved through private channels and not litigated in the media.  So with all due respect, I’m not in a position to talk about that aspect of their conversation in any more detail.

Q    A quick follow-up?

MR. EARNEST:  Sure, Jon. 

Q    That readout also said that they discussed ways to improve intelligence cooperation.  What would you say is the current state of intelligence cooperation between the United States and Germany?

MR. EARNEST:   Well, as I understand it, there is a strong and ongoing national security relationship between the United States and Germany.  That relationship has served both countries very well.  And I understand that that relationship is enduring. And we are always, in a variety of environments, looking for ways that we can strengthen and improve our national security and intelligence-sharing capabilities. 

This is part of an ongoing effort.  The American people have certainly benefited from that relationship.  It’s our view that the German people have benefited from that relationship as well. And it’s a relationship that we’re committed to working on every day.

Q    And on the Oversight Committee, Chairman Issa has also released an audio recording of Former Labor Secretary Hilda Solis asking a subordinate at the Labor Department to contribute funds and help solicit contributions from others to the President’s political organization.  Does the White House condone that kind of activity?

MR. EARNEST:  Well, Jon, I appreciate the spirit of your question.  I’m not in a position to publicly comment on that audio recording.  It relates to an ongoing law enforcement investigation.  This is a law enforcement investigation that was first reported back in January of this year.  We weren’t in a position to comment on that law enforcement investigation at that point and I’m not in a position to comment on it today.

Q    So let me ask you as a general principle -- or let me actually back up -- has the President ever, or anybody in the White House, asked Cabinet Secretaries to help raise money for Organizing for America or to raise money from government employees?

MR. EARNEST:  Well, Jon, what this administration -- the clear guidance that every member of this administration has received is to follow the guidelines, both the spirit and letter of the Hatch Act.  As you note, the Hatch Act does not allow government officials to solicit funds for political purposes.  That’s simply a matter of law.  And every member of this administration has been directed to follow that law.

Q    Hilda Solis is a former member of this administration, the President’s Cabinet.  She’s now running for office in Los Angeles.  Has the President taken a position on her race?  Has he endorsed her?

MR. EARNEST:  I have to confess, Jon, I have no idea what candidates have filed for that office.

Q    You’re not following the L.A. County Executive’s race?

MR. EARNEST:  I am known as a little bit of a political junkie, but I have to admit that that one has evaded my attention.

Q    And let me ask you on the border, you were asked yesterday about Jose Antonio Vargas’s arrest or detention down in McAllen.  He’s been released now with a promise to appear at the hearing.  Given that you at this podium and others in the administration have said that the undocumented children that have come over the border are likely to be sent home -- will have their hearing, but they’re likely, most of them, to be sent home -- who is more likely to be deported -- the Pulitzer-prize winning author, Mr. Vargas, or these children that are fleeing dangerous circumstances back in Central America? 

MR. EARNEST:  What I can tell you, Jon, is that this administration is committed to making sure that those children from Central America get the due process to which they’re entitled.  So making a general claim about who is more likely to be deported is difficult to do here.  It’s just a generalization. Each of these cases will merit the attention of an immigration judge who will decide on the merits, whether or not there is a legitimate claim for that individual to remain in this country. 

I’m not in a position to talk specifically about Mr. Vargas’s case.  I’d refer you to the Department of Justice and the Department of Homeland Security, who may be able to give you more information about the status of his case.

Alexis.

Q    Josh, I just want to follow up with what Jim was asking earlier about the meeting this afternoon with the Congressional Hispanic Caucus.  Since it’s a week after the President’s presentation, what would the President like to achieve out of this discussion today?  What’s his goal in talking to them?

MR. EARNEST:  The priority for this meeting is for the President to hear from congressional Democrats some of their ideas about steps that the President can take using his executive authority to address the problems created by our broken immigration system. 

A couple of weeks ago, you heard the President announce that he’d been informed by the Republican Speaker of the House that Republicans were not planning to consider common-sense, bipartisan legislation that had been passed by the Senate.  That was a disappointing development.  But the President is not going to stand idly by while Congress does nothing.  The President is determined to use the authority that’s vested in the executive branch to take the kinds of steps that could mitigate or alleviate some of the worst problems created by our broken immigration system.

Currently, the Secretary of Homeland Security and the Attorney General of the United States are taking a look at what options are available to the President, what sort of executive authority he can wield to address these problems.  But I know that there are many Democrats up on Capitol Hill, including many members of the Congressional Hispanic Caucus who have their own views on this topic and the President is eager to hear from them about that.

Q    So then, my next question -- and maybe you’ve been asked this before, so my apologies -- but how does the President perceive that these two initiatives will blend together with his executive power?  In other words, his presentation to Congress of legislation that he seeks for the border crisis and his vow to move ahead through executive initiatives to deal with the immigrants already here, how do they intersect in his mind? 

MR. EARNEST:  Well, it’s clear that this policy challenge that we’re dealing with is significant and, unfortunately, we have seen very little from Congress to indicate their willingness to act to address any of it.  So what you’ve seen this President do is to do everything that he can, using his own executive authority, to try to address some of these challenges. 

Now, one possible consequence of the increased attention to the situation at the border is that it raises the stakes even higher for Republicans who want to stand in the way of common-sense immigration reform.  There’s demonstrated bipartisan support for this proposal in the United States Congress.  There’s demonstrated support for this proposal among the law enforcement community, the labor community, the business community, even the faith community all across the country.  Leaders in those communities strongly support common-sense immigration reform. 

As it is highlighted to Americans across the country, principally through your media outlets, that this is a significant problem, it seems possible that even more political pressure can be brought to bear on Republicans that could persuade them to, if not change their mind about immigration reform, might change their mind about using this tactic to even prevent that piece of legislation from being considered by the entire House of Representatives.  The reason that would be significant is that it’s the view of the White House and many observers that if this legislation were brought to the floor of the House of Representatives, that it would actually pass with bipartisan support. 

So we’ll see what impact this ongoing debate has.  I guess I should say we’ll see what impact this ongoing situation has on the political debate in Washington, D.C.  Hopefully, it will have a positive impact.

Q    Would you say that the President has in mind that Speaker Boehner may have been premature in suggesting that nothing was going to happen this year?

MR. EARNEST:  Well, I think it’s up to Speaker Boehner to make this decision.  So it’s not premature -- if he’s made a decision to block legislation that has broad bipartisan support all across the country, that is a decision that he says that he’s made, that would make it not premature for him to say that.  He certainly is entitled to free will and entitled to changing his mind.  We hope that’s what he’ll do.  But if he won’t, the President stands prepared to take the kinds of executive action that he’s allowed to take to try to address some of these problems.

Chris. 

Q    Josh, to follow up on that, given the amount of time -- and you’ve stated this repeatedly -- that key members of his administration who deal with immigration have devoted to dealing with the border crisis, how does that change the equation on how he’ll use his executive powers, both perhaps in terms of what gets done and the timeline for recommendations and making decisions?

MR. EARNEST:  I think it’s hard to assess that before the President has made a decision about what exactly he wants to do. So I have full confidence in the bandwidth at the Department of Justice and the Department of Homeland Security to conduct expeditiously a review of the authorities that are available to the President under existing law to try to address some of these problems.  So I’m confident that we’ll get a good review from DHS and from the Attorney General.  I’m confident the President will carefully consider their recommendations and will make a decision pretty quickly about which authorities he’s going to invoke to address some of these important challenges. 

None of the things that the President will do using his executive authority will be as substantial as the reforms that are included in the legislation.  That’s why we’re continuing to encourage Congress, and specifically, Speaker Boehner to change his mind to allow that legislation to come up for a vote on the floor of the House of Representatives, because it has the potential to address so many more of the problems that are created by our broken immigration system.

Q    So you don’t think what’s happening on the border is likely to affect either the content or the timing?

MR. EARNEST:  Well, I think it’s hard to say.  I do not anticipate that it’s going to have any impact on the timing at all.  I do think that they have enough bandwidth to conduct this review and get the President a report by the end of the summer, which was the established deadline. 

Q    Let me just ask you quickly, if I can, about Israel.  There’s a senior Israeli military official who has suggested that the likelihood of ground invasion is very high.  All the reports about the four children who were playing on a Gaza beach who were killed -- what’s the sense?  Is there any hope, given what Hamas has said, for a cease-fire under this Egyptian proposal?  And if not, then what’s the next move by the U.S.?

MR. EARNEST:  Well, there is hope.  That hope is embodied in a proposal that was put forward by the Egyptians and accepted by the Israelis.

Q    But what’s the indication from Hamas that that’s going to change, especially given what’s happened?

MR. EARNEST:  We have not so far seen an indication from Hamas that they’ll stop firing rockets.  But a good-faith willingness expressed by the Israelis to abide by the cease-fire should be sufficient encouragement to stop firing rockets at innocent civilians on the other side of the border.  Now, we’ll have to see what decisions the leaders of Hamas and other organizations who are engaged in this activity make.  But this administration and this country stands firmly behind Israel and their right to defend themselves.

As I’ve mentioned before, Israeli political leaders don’t just have the right, they probably have the responsibility to take the steps that they believe are necessary to protect their civilians.  But at the same time, we are hopeful that both sides will exercise some care and concern for innocent civilians on both sides of the border.  That, ultimately, is who would benefit the most from a cease-fire -- that’s people on both sides of the border.  It would reduce the risk that’s faced by innocent civilians.  And the fact is, it’s not in anybody’s interests -- not in the Israeli people’s interest or in the Palestinian people’s interest -- for this exchange of hostilities to continue.

Ed.

Q    Josh, on immigration, you’ve heard Republicans charge that it was the President’s executive order in 2012 that helped create this crisis because it encouraged families in Central America to send their kids and suggested to them perhaps that they could stay in America.  So my question is, I hear you saying now the President is under pressure from Democrats to treat these kids well.  He’s meeting with the Congressional Hispanic Caucus and you’re saying he is going to sit down with them today and talk about more executive orders.  Couldn’t more executive action potentially backfire and create more problems that we don’t know about?

MR. EARNEST:  No.  And I don’t think Governor Perry agrees with your assessment as well.  He pointed out, as you’ll recall last week, that this is a problem that originated -- that he saw the roots of before the President even announced the action that his administration was considering as it relates to deferred action.  So I think that’s important for people to understand.

The second thing that’s important for people to understand is that individuals who are coming to the border are not eligible for the deferred action that the President announced back in 2012.  In fact, what the President has said is he’s devoting additional executive resources to deal with the problem now and to prioritize the case of recent border crossers.  So there should be no misunderstanding about the situation and the impact that the President’s decisions are having on that situation. 

But what we really face here is a broken immigration system, and a broken immigration system that has some problems that can be solved through congressional action.  Fortunately, because of hard work in the Senate, in conjunction with representatives of this administration, the Senate passed bipartisan legislation that would address a lot of these problems.  House Republicans are blocking those reforms from taking effect. 

Q    Simple question, is the border today secure? 

MR. EARNEST:  The issue that we’re seeing at the border right now, Ed, and the issue that --

Q    I’m not talking about the issue.  I’m saying, is the border secure?

MR. EARNEST:  Well, I will tell you that there are more resources that are dedicated to this border right now, in securing it, than there ever have been.

Q    Securing it, but is it secure today?

MR. EARNEST:  And the issue that we’re seeing right now is not individuals attempting to evade detection by Border Patrol officials.  What we’re seeing right now are people who are coming to the border and turning themselves over to Border Patrol. 

Q    Yesterday, Senate Majority Leader Harry Reid said Republicans keep saying secure the border first, then we’ll deal with comprehensive -- Senator Reid said -- he put the Majority Leader’s Office right behind him -- said the border is secure.  Do you agree with him?

MR. EARNEST:  The administration, under the President’s leadership, has dedicated significant resources to securing the border.  And here’s what I would say to those -- particularly, those Republicans who are concerned about border security.  There is a historic investment in border security resources included in the bipartisan bill that was passed by the Senate.  So those in the House, in particular, who are concerned about border security should be the champions of common-sense immigration reform. 

So it is hard to take seriously the concerns of those who say the border is not secure while at the same time they’re blocking a piece of legislation that’s already passed the Senate that would actually invest in securing the border.

Q    They’re saying it’s not secure, the Republicans.  You’re saying it is secure?

MR. EARNEST:  They’re saying it’s not secure and blocking a piece of legislation that would actually make a historic investment in border security.  I’m saying that is a deplorable act of playing politics with a very serious situation.  The position of this administration is that we have made an important investment in securing the border.  There are more resources there now and have been put there under the President’s watch than at any time in our history.

Q    It’s getting more secure you say, but not secure --

MR. EARNEST:  The President is certainly supportive of additional security being added to the border, right.  That’s why the President -- again, there are a whole host of reasons to support comprehensive immigration reform.  Historic investment in border security is one of them.  It’s one of the reasons the President strongly supports it.

Q    Two other quick ones -- one on immigration, and then Iran.  Immigration -- Sunday, you said on CNN, this is still the most transparent administration in history. 

MR. EARNEST:  I did.  I’m glad you watched.

Q    I watched it very closely. 

MR. EARNEST:  Thank you.  (Laughter.)

Q    And my question is, why then is the administration, in the interest of transparency, not putting some sort of list out there for the public to know where are these unaccompanied minors going?  We’re hearing governors in both parties saying they’re finding out at the last minute buses are coming into their neighborhoods.  Shouldn’t the public have a right to know?

MR. EARNEST:  Well, Ed, the public does have a right to know what’s happening.  And that’s why this administration has been trying to communicate very clearly with the public about the steps that we are taking to address the problem at the border. 

Q    So is there a list of where the kids are going that you’re giving to governors?

MR. EARNEST:  At the same time, there are privacy rights that are included in the law that this administration is committed to enforcing and following.  So we’re going to abide by the privacy rights of particular individuals.  We’re also going to enforce the law, and we’re also going to do our best to communicate with the public precisely what this administration is doing. 

Q    People in neighborhoods have a right also to understand if illegal immigrants are coming into their neighborhood?

MR. EARNEST:  Well, I guess I don’t understand the question entirely.

Q    Well, if I live across the street from one of these facilities where you’re sending people, do I have a right to know that they’re going to be showing up, illegal immigrants?

MR. EARNEST:  Well, what this administration is committed to doing is working with state and local officials to coordinate our efforts to meet the basic humanitarian needs of individuals who are under detention because they’ve been apprehended at the border.  And that’s why one of the concerns I know that has been raised by some public officials has been related to public health -- are the individuals who are being detained getting access to vaccinations and being treated for other communicable diseases that they may have.  That’s included in the supplemental funding request, are additional resources that could be deployed by the CDC and HHS to try to meet those needs.

So this administration is working in close consultation with state and local officials to try to meet these needs and to do that in a way that it protects communities.  Again, when we’re talking about border security -- and particularly, as it relates to our immigration policies -- one of this administration’s priorities is making sure that we’re protecting national security and public safety.  And that is part of the priority set that law enforcement officials and even prosecutors are using as they determine where to direct their actions against illegal immigration.

Q    In December and January -- on Iran -- you had Democrats like Bob Menendez saying he wanted more sanctions against Iran.  The President had meetings with Democrats, pushed back and said, give me six months.  But he, in his State of the Union, Jay Carney at that podium has said previously, if at the end of that six months there is no deal, we’ll lead the effort to push more sanctions.  That’s how you got Congress to get off your back six months ago.  So if there’s no deal this Sunday, will the President push forward as soon as next week on new sanctions against Iran?
MR. EARNEST:  Well, Ed, I welcome your line of questioning about this.  What we have said is that Secretary Kerry is going to come back from his conversations with the Iranians and our P5-plus-1 partners to consult with the President and to consult with members of Congress about the path forward.  So there are still four days to the deadline.  I’m not going to make any announcements from here about that.

Q    But there was a promise made.  Jay Carney said in December 19th, if Iran fails to reach agreement with the P5-plus-1 on the more comprehensive agreement that’s being discussed now over the course of six months, we are very confident we can work with Congress to very quickly pass new effective sanctions against Iran.  Mr. Carney’s comments still valid?

MR. EARNEST:  They are still valid because what Mr. Carney was saying is that if Iran doesn’t act in the kind of good faith in the context of these negotiations that we stand ready to work with Congress --

Q    Well, he didn’t say good faith -- he said if Iran fails to reach agreement.  He didn’t say if they act in good faith or don’t.  He said if Iran fails to reach agreement we will very quickly pass new sanctions.  Is that still true?

MR. EARNEST:  What is still true is that the Secretary of State is going to continue to consult with the President about his conversations with Iran and the P5-plus-1.  The Secretary of State and senior administration officials will also consult very closely with Congress.  Ultimately, it will be Congress who will have to decide whether or not additional sanctions legislation should be passed.  But they will do that in consultation with administration officials about the best way to deal with these ongoing negotiations. 

Like I said, we’ve made important progress in the context of those talks.  We’ve also made important progress in terms of getting Iran to roll back some aspects of their nuclear program because Iran did live up to the Joint Plan of Action that was agreed to about six months ago.

Mike.

Q    Just a real quick one back on the border stuff.  You guys have said that what you’re interested in is the ultimate outcome.  You’re not so worried about how that happens in terms of flexibility with dealing with the Central American kids.  In a conversation with one of my colleagues, Nancy Pelosi just said that she now will oppose any change to the 2008 law.  Before she had said she might accept that.  Are you guys also taking off the table any change to the 2008 law and saying that you only want this extra flexibility, or are you still open to the possibility that some kind of change to the 2008 law would resolve -- would be what you would want?

MR. EARNEST:  Well, I haven’t seen Leader Pelosi’s comments so I don’t want my comments to be interpreted as a reaction or a comment on hers.  But what I can do is I can restate what continues to be our position.

Our position is that we would like to see Congress grant additional authority to the Secretary of Homeland Security so that he could exercise his own discretion to enforce the law more efficiently.  Now, some people have asked me on a couple of previous occasions whether that means should Congress pass a new law, should Congress pass a law that replaces the 2008 law, should Congress pass a piece of legislation that would modify the implementation or enforcement of the 2008 law. 

Q    And you said you’d be open to all of that.

MR. EARNEST:  What I have said is that that’s Congress’s job to determine.

Q    But you said you’d be open to all of that.

MR. EARNEST:  Well, we’re open to Congress doing their job in deciding what the best path is.  And if Congress chooses a path along those lines that results in the Secretary of Homeland Security getting the kind of authority he needs to exercise his own discretion to enforce the law more efficiently, and do that in a way that continues to respect the basic due process rights of these individuals, then we’ll be happy with that.  In fact, that’s specifically what we’re requesting.

Q    So you’re open to something that it appears that Ms. Pelosi is not?

MR. EARNEST:  Well, again, I have not seen her comments.  She may have made them while I was speaking up here.  I’ve been talking up here for a long time.  But our position has not changed.

Q    But your position hasn’t changed?

MR. EARNEST:  That’s correct.

Q    Can I follow up on that?

MR. EARNEST:  Sure, Juliet.

Q    Just following up on that, Nancy Pelosi is saying this; you have several members who are coming down here to deliver this message as they meet with the President at 3:30 p.m. from the Congressional Hispanic Caucus; Leader Reid has also indicated his opposition.  So what is it that the White House is doing to communicate with members who have concerns about, for example, accelerating deportations when that is obviously seen as something that Republicans would want in order to reach any compromise on approving additional funding?

MR. EARNEST:  Well, let me say a couple things about that.  The first is that funding is the priority, the funding is important.  We need the resources to deal with this spike that we’ve seen along the southwest border.  Those resources would allow these immigration proceedings to move more efficiently and more quickly.  By adding additional judges and prosecutors, you can work more people through the system in a way that respects their basic due process rights while at the same time enforcing the law.

There are a whole range of other resource requests that are included there -- everything from, as I was mentioning to Ed earlier, resources that would ensure for the public health and safety of the individuals who are being detained.  There are additional resources that are sought to increase surveillance and other security measures along the border.  So there are a lot of important things that are included in that funding request.  That is our priority.

What is also, though, important is that additional authority be given to the administration to crack down on the criminal networks that are facilitating so much of this illegal migration. And as I mentioned to Mike, we would also like to see Congress give additional authority to the Secretary of Homeland Security to exercise his discretion to enforce the law more efficiently.  All three of those things are important, but our priority right now is focused on the funding for the resources that are necessary to deal with this challenge.

Leslie.

Q    Can I ask you an off-topic question?

MR. EARNEST:  Sure.

Q    You’ve seen in reports -- Miami Herald reported yesterday or last night that a Navy nurse at Guantanamo has refused in the first -- considered a conscientious objector -- to participate in the forced feeding of detainees there.  Is the White House aware of this?  And what – are you afraid of what complications it could lead to in trying to continue with keeping Guantanamo operating?

MR. EARNEST:  Leslie, I did not see that report in the Miami Herald.  I’d encourage you to check with the Department of Defense to see if they have a reaction.

Bill.

Q    Back on sanctions.  There were reports today out of Russia that the Russians have indicated an intention to reopen a signals intelligence operation in Cuba, which was closed back in the ‘90s, I guess.  Are you aware of that?  Could you comment on it?

MR. EARNEST:  I’m not aware of that specific report, but if one of my colleagues has an answer for you, we can have somebody get in touch with you about it.

Q    And the other sanctions -- you sure that we can’t expect something this afternoon?

MR. EARNEST:  I’m just not in a position to talk about the timing or content of a possible sanctions regime.  Again, to send a clear signal about a planned sanctions regime would be pretty counterproductive, so I don’t want to do that from here.

Q    Not a clear signal, just a kind of fuzzy signal.  (Laughter.)

Q    The Pentagon says that there are now 10,000 to 12,000 Russian troops on the Ukrainian border, scaled up from 1,000 just a couple of weeks ago.  Isn’t the President’s credibility on the line if he doesn’t do something, whether it’s with the EU or at least unilaterally?

MR. EARNEST:  Well, we’ve observed on quite a few occasions over the last few weeks that the Russians have demonstrated a willingness to take a step or two forward in terms of trying to de-escalate the situation in Ukraine and then a couple of steps back.  I think the movement of a -- deployment of additional troops along the border with Ukraine would represent at least a couple of steps back.  That is the opposite of what we have been calling on them to do, that’s correct.  And you’re right, it does raise the stakes and increase the risk that Russia faces of additional isolation and economic costs being imposed on them.

Zeke, I’m going to give you the last one.

Q    Secretary Burwell met with governors on Sunday in Nashville.  Many of the governors expressed concern over whether or not their states would have to pick up some of the tabs if these children are transported away from the border.  What assurances is the White House giving to the states that their resources, which are already fairly strained, won’t be tapped by this crisis?

MR. EARNEST:  Well, Zeke, as was evident from the President’s conversation with Texas officials last week, and evident from the report and conversation between senior White House officials and Governor O’Malley, that we’re in regular touch with state and local officials, many of whom have expressed a willingness to try to assist the federal government as we deal with this difficult challenge; that there are a lot of people in these communities who are responding to their own conscience in terms of wanting to meet the basic humanitarian needs of these individuals, who are responding clearly to a pretty desperate situation.

So I know that when the President talked to some of the faith leaders in Dallas that he had the opportunity to meet he was really struck by the expressions of generosity and kindness that they articulated in the context of that meeting.  I think that’s indicative of the response of the vast majority of people all across the country who are watching these stories and these reports and are responding to the basic humanity that’s in them.

So we’re going to continue to work closely with state and local officials to make sure that we’re doing everything we can to meet these basic humanitarian needs but in a way that doesn’t impose unnecessarily on local communities.

Q    And with regards to that call on Friday, Governor O’Malley said today to The Washington Post that -- he suggested that the White House specifically leaked the contents of that call, saying he did not leak it.  Did anybody at the White House release the contents of that call with Governor O’Malley?

MR. EARNEST:  You guys are the ones who are doing the reporting here, so I’d encourage you to check with your sources. What we value is the strong working relationship that this administration has with state and local officials all across the country on a whole range of issues.

Q    Does the Governor have that kind of relationship if -- when this comes up -- can he have an honest and frank exchange of ideas if the contents of those conversations have been disclosed to the press?

MR. EARNEST:  I can tell you that we strongly value the working relationship that we have with Governor O’Malley.  There are a whole range of issues on which we’ve worked closely with the O’Malley administration to benefit the people of Maryland.  We’re pleased with that relationship and that relationship is as strong as ever.

Q    Josh, are you satisfied with it on this issue, on the way that the O’Malley administration has been working with the White House in terms of the facilities that might be used for these children?

MR. EARNEST:  Well, I know that, again, only from reading the reports, you guys have great sources, including your story.  The O’Malley administration --

Q    (inaudible.)  (Laughter.) 

MR. EARNEST:  I'm going to try.  The O’Malley administration I think was quoted even in your story indicating a willingness to work with the administration to try to find a suitable facility that could be used to meet the basic humanitarian needs of those who had been apprehended. 

So we welcome that kind of cooperation and that’s the kind of spirit that I think reflects the view of a lot of Americans who are watching these news stories.  These are individuals, when they’re apprehended along the border, who have gone through a terrible, difficult, dangerous journey.  They are clearly fleeing a desperate situation.  And I think the humanitarian impulse to try to care for them while at the same time we’re enforcing our law is a natural one.  And that reflects the kind of cooperation that we’ve gotten from so many state and local officials from across the country.

Q    But have you been satisfied with the O’Malley administration’s response on this issue to this point?

MR. EARNEST:  Well, I think the most that we can ask for state and local officials is to demonstrate a clear willingness to work with us to find an appropriate place where these individuals could be detained and their humanitarian needs could be met.  That sounds like what the O’Malley administration is promising and I take them at their word.

Thanks, everybody.

END
2:24 P.M. EDT

The White House

Office of the Press Secretary

Statement by the Press Secretary on H.R. 2388

On Wednesday, July 16, 2014, the President signed into law:

H.R. 2388, which transfers Federal land in El Dorado County, California, into trust status for the benefit of the Shingle Springs Band of Miwok Indians.