Pentagon authorizes transfer of $1 billion to begin building border wall
The Pentagon has authorized the transfer of $1 billion to start construction of a new wall along the US-Mexico border. Markets slow to react.
The Pentagon has authorized the transfer of $1 billion to start building a new wall along the US-Mexico border. The border-wall has long received mcriticism from Democratic leaders, who immediately objected to the authorization.
According to CNN reports, Pentagon budget reprogramming indicates that up to $1 billion will go toward building 57 miles of fencing and improving roads on the southern border.
The department of defense authorized the Army corp of engineers to begin construction for the project on Monday night.
The fence along the Yuma and El Paso sections will be 18-foot high, and funded by the defence department., as detailed in a letter sent to secretary of Homeland Security by secretary of Defense Patrick Shanahan.
The first $1 billion
The announcement comes as just the first $1 billion allocated to building the border wall. The Trump administration has said it plans to allocate additional $1.5 billion to the construction in the future.
US president Donald Trump declared the wall a national emergency in February, in order to be able to fund its construction. Trump's declaration created havoc among the House, leading to a partial government shutdown initiated by Democratic leaders.
Markets slow to react
Markets have reacted slightly to the news, as it comes after the US markets close.
IG market analyst Kyle Rodda said, USD and US futures markets only lifted slightly in response.
‘It’s hard to separate the move from the overall snap back more broadly in markets today. Whatever move there was, its been relatively fleeting in the bigger picture it seems. We might have to wait until US markets come on line to see the full extent of the move.’ Mr Rodda said.
House members are scheduled to vote to override the decision on Tuesday, however, it is widely expected that Trump’s national emergency declaration will continue.
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