The Trump administration on Friday withdrew a policy that would have allowed states to protect some jobs from the incoming administration’s budget cuts, but did not eliminate them.
The announcement came as New Jersey Governor Chris Christie announced he was backing away from a plan that would allow hotels to continue to open and maintain their operations in the face of the $1.6 trillion federal spending cuts the Trump administration announced Friday.
Christie, a Republican, had been pushing for an amendment to the Budget Control Act that would block the administration’s proposed spending cuts.
But the measure failed to advance by a majority vote.
The White House has said it will “continue to pursue a bipartisan approach to balancing the budget in the coming months and years.”
The White House said it has no intention of reversing the decision to protect the hotels.
The administration’s decision to withdraw the rule is “in stark contrast to previous administrations that have prioritized protecting hotel jobs at the expense of our nation’s most vulnerable citizens,” the White House press secretary, Sarah Sanders, said in a statement.
“This was an important step forward, but it is not enough,” Sanders added.
The Trump administration had sought to protect more than 700,000 hotel jobs and other jobs in the tourism industry.
President Donald Trump speaks at the American Legion convention in Philadelphia, Pennsylvania, U.N. Secretary General Antonio Guterres, left, speaks with U.K. Foreign Secretary Boris Johnson and U.A.E. Secretary of State Boris Rotenberg.
A new study from the Economic Policy Institute found that the Trump Administration would likely have saved about $1 billion a year from the hotel industry, which was already facing an acute budget crunch.
The EPI study, published on Friday, found that “the hotel industry was the second largest contributor to federal spending for all federal agencies in fiscal year 2017, trailing only the Department of Veterans Affairs.
But the EPI report also found that while the hotel sector was responsible for more than half of federal spending in fiscal 2017, it was the only industry sector that saw a reduction in federal spending of more than 2 percent, with the tourism sector experiencing a decline of 3.6 percent.”
The report’s authors said they were “deeply concerned” by the decision, given that hotels “represent an essential part of our national economy and are vital to our economy’s ability to attract visitors to our nation.”
They noted that hotel jobs could lose jobs in restaurants, bars, restaurants and other establishments.
It’s unclear what will happen to hotel jobs in New Jersey, which has seen the highest hotel vacancy rate in the country.
New Jersey has been a battleground state for Trump since the 2016 election, and he has repeatedly criticized Democratic Gov.
Phil Murphy for supporting the state’s casino moratorium.
Murphy has maintained that the moratorium is not a political stunt and that casinos will not be harmed by the moratorium.