With surveillance program at risk, Trump tries to end standoff over spy chief

By Jonathan Landay and David Morgan

WASHINGTON, June 10 (Reuters) – U.S. President Donald Trump sought on Wednesday to break a deadlock in Congress over renewing a foreign surveillance program but refused to withdraw his pick of an inexperienced loyalist to serve as the top U.S. spy chief, leaving his gambit in doubt.

Lawmakers have so far refused to extend the surveillance program, which is due to expire on Friday, with some objecting to Trump’s decision to install mortgage regulator Bill Pulte as acting head of the country’s sprawling spy bureaucracy.

Unless Republican and Democratic lawmakers find a compromise or Trump drops Pulte, U.S. intelligence agencies will lose legal authority to collect emails, texts and cellphone data of foreigners believed to be located outside the United States without individual judicial warrants.

Spy agencies warn that will leave a critical gap in intelligence gathering on threats to the U.S. at a time when it is hosting the World Cup and embroiled in hostilities with Iran.

“This is not my side’s fault. Frankly, it’s not the Republican Senate’s fault. This president owns if 702 goes dark,” Democratic Senator Mark Warner said, referring to Section 702 of the Foreign Intelligence Surveillance Act, the law at issue.

Renewal of the law has stalled over Trump’s selection of Pulte, a federal mortgage regulator with no national security experience who used his access to confidential data to push mortgage fraud probes of the president’s perceived political foes.

Trump called on Congress to pass a short-term extension of the surveillance program to allow time to find a full-time nominee for the position.

But he made clear he would not meet Democrats’ demand that he withdraw Pulte.

“I have named William Pulte to be Acting Director of National Intelligence, who will take over on June 19th, and have asked him to execute the immediate and needed downsizing of the office, reverting staff to their home agencies,” Trump wrote on social media.

“At the same time, I am looking for a permanent ODNI Nominee with experience in National Security.”

With a 53-47 seat Senate majority, Republicans will need at least seven Democrats to extend the law past Friday’s expiration.

Democrats, however, stuck to their demand that Trump withdraw Pulte.

“There are no votes for this bill while Pulte is still in the job,” said Democratic Senator Chris Murphy.

Republican Senator John Cornyn of Texas, who on May 26 lost a primary race to a Trump-endorsed candidate, said it was up to the White House and Democrats to “find some way to get past this logjam.”

All but one Senate Democrat last week voted to block renewal of the program over Pulte’s lack of national security experience and his use of confidential mortgage data to promote mortgage fraud investigations against several of Trump’s perceived enemies, expressing concern he could do the same with top-secret intelligence.

Seven Republicans also voted against renewing the program, saying it needs more privacy protections for Americans.

(Reporting by Jonathan Landay, David Morgan and Daphne Psaledakis; Editing by Andy Sullivan, Ryan Patrick Jones; Editing by Doina Chiacu and Nia Williams)