Congress
As affordability concerns mount, Hill Republicans are struggling to act
Republicans want to put the economy at the center of their midterm message as they seek to protect their majorities in Congress. But as cost-of-living concerns mount across the political spectrum, the GOP is struggling to act decisively to address them.
Already top Republicans acknowledge they haven’t done enough to sell the “one big, beautiful bill,” the party-line centerpiece of their economic agenda they enacted over the summer. Now internal divisions and the need for bipartisan support in the Senate are threatening any attempt to follow up on it.
The GOP is struggling to coalesce behind a health care plan that would prevent Obamacare premium hikes set to kick in next month and efforts to rein in President Donald Trump’s tariffs have run aground in the House. Meanwhile, the administration’s proposal to distribute $2,000 rebate checks has gotten a lukewarm response on Capitol Hill and the fate of other smaller bills to address things like housing prices and student debt have sparked intraparty sparring.
“The cost of living is a legitimate issue — I think it was one of the main reasons President Trump was elected. I think it’s still an issue,” Sen. John Kennedy (R-La.) said in an interview, urging Republicans to pursue another party-line bill before the midterms in response.
While many in the GOP — including Trump — continue to lay blame for their economic problems with former President Joe Biden, there are clear warning signs for Republicans. Forty-six percent of respondents in a recent POLITICO Poll said the cost of living is the worst they can remember it being.
That includes 37 percent of those who voted for Trump in 2024, and about a quarter of Trump voters say he is either fully or mainly responsible for the current state of the economy.
Yet top GOP leaders in Congress are keeping expectations low for major new economic legislation. Instead, they are betting on having an easier time addressing affordability questions next month, when new programs enacted as part of the megabill start impacting voters — like no taxes on some tips and overtime income.
“We haven’t probably messaged as effectively as we should,” Senate Majority Leader John Thune said in an interview, when asked about the party’s economic case. “I think we’ll have lots of opportunities now that we’re getting into an election year to talk about the things we’ve done and how they are going to lead to things being more affordable for the American people, probably starting with tax relief next year.”
Speaker Mike Johnson also argued voters have not fully felt the impact of the megabill “because it takes a while for it to be implemented.” But he predicted that by mid-2026, “there’s going to be boats rising in the economy, this is going to be a very different situation before we go into the election cycle.”
“Republicans are dialed in like a laser, with laser focus on the cost of living and affordability,” he added, while forecasting more to come: “They are going to see this agenda going forward — our affordability agenda.”
But there are reasons to doubt an impending turnaround. Some of these same leaders argued this summer, as they strained to pass the megabill, that Americans would feel the economic benefits in a big way by late fall. That never materialized, with Republicans instead bogged down in a monthslong fight over releasing files related to Jeffrey Epstein and a lengthy government shutdown. Trump himself has recently taken to calling the emphasis on affordability a “hoax” perpetrated by Democrats.
Democrats are gearing up to hammer the GOP on the issue, and some of them are hearing some familiar echoes in the promises of a rapid turnaround just around the corner. Democrats said much the same thing after their party passed their own major party-line bills as inflation rose under Biden.
“They are in a bubble from Donald Trump on down,” Senate Minority Leader Chuck Schumer told reporters last week. “Donald Trump says there’s no affordability crisis — what kind of world is he living in?”
Kennedy isn’t the only one talking up the idea of doing a second party-line bill using the budget reconciliation process to overcome a Democratic filibuster in the Senate. The Republican Study Committee, a large bloc of House conservatives, is pushing such a bill aimed at addressing affordability and other issues, and Senate Budget Chair Lindsey Graham (R-S.C.) is vowing to plow forward in laying the groundwork for another reconciliation measure.
But Johnson and Thune have treaded lightly on the prospects for second such bill, which faces uphill odds with the GOP divided on the policy particulars and the midterms drawing closer by the day. Instead attention is being drawn to smaller-bore efforts.
Tony Fabrizio, a top Trump pollster, also urged members of the RSC last week to tackle high prices for prescription drugs and housing — warning members in a closed-door meeting that affordability concerns were a key reason a House special election in Tennessee was so close.
But even a push to attach a bipartisan housing package to the annual defense policy bill sparked an intraparty turf war, pitting Senate Banking Chair Tim Scott (R-S.C.) and Sen. Elizabeth Warren (D-Mass.), the panel’s ranking member, against House Financial Services Chair French Hill (R-Ark.).
Scott said in an interview last week the housing measure is “a great sign that we are looking for ways to address the challenges that we see in real America” and that passing it now would “put lawmakers “on the same page as President Trump and the White House.”
But Hill, who plans to advance a separate housing package through his committee later this month, told senators that parts of the Senate bill are unacceptable to most House Republicans and need to be left out of the Pentagon bill.
Rep. Mike Flood (R-Neb.), who is spearheading the House package, said last week he would be “amenable to something that has provisions the House wants and the Senate wants.” Thune, asked if the Senate housing provision would get in the defense bill, crossed his fingers.
But no agreement could be reached over the weekend, and the House released defense bill text Sunday night that did not include the housing provisions.
Other lawmakers are itching to show that the party is addressing other affordability concerns, even if those efforts face an uncertain path to becoming law.
House GOP leaders, for instance, are trying to move long-delayed permitting reform legislation over the floor in the coming weeks, arguing that reducing red tape for energy and other projects would lower the cost of living. And Rep. Anna Paulina Luna (R-Fla.) told reporters Thursday there could soon be a bipartisan effort to force a bill capping student loan interest at 2 percent to the House floor.
“That’s a hint for next week,” she said, when asked if she or a colleague would pursue a discharge petition aimed at sidestepping House GOP leaders who have opposed other forms of student loan relief.
House and Senate Republicans, meanwhile, are having a furious behind-the-scenes debate about how to show they are trying to address health care costs ahead of the end-of-year expiration of Obamacare subsidies used by more than 20 million Americans.
Sen. John Hoeven (R-N.D.) acknowledged “there’s a lot more to do” on affordability beyond this year’s megabill on health care and more: “Obviously, medical inflation is very high.”
But GOP leaders in both chambers are scrambling to figure out what pieces of a health care overhaul to put forward — and getting an earful from competing factions within their own party. It’s possible Senate Republicans this week won’t put a consensus GOP alternative up for a vote alongside the three-year extension Democrats want.
A plethora of rank-and-file options are under development, with Sen. Susan Collins (R-Maine) and Rep. Brian Fitzpatrick (R-Pa.) backing a two-year extension of the subsidies with new eligibility restrictions, Sen. Rick Scott (R-Fla.) wanting to provide more flexibility for health savings accounts and Sen. Josh Hawley (R-Mo.) proposing to make it easier to deduct medical expenses on their income taxes.
“It’s a disaster,” Hawley said. “Health care, as it currently is, is too expensive for everybody.”
Katherine Hapgood and Katherine Tully-McManus contributed to this report.
Congress
GOP hard-liners threaten to tank FISA vote
House GOP hardliners are threatening to tank the FISA rule shortly on the House floor as Speaker Mike Johnson tries to force through a five year extension, according to four people granted anonymity to speak about plans not yet public.
They’re livid over the “inexplicable 5 year extension, the fake warrant requirement, and the walk back of the promise from this afternoon to include CBDC,” according to one of the people, referring negotiations to prohibit a central bank digital currency.
Congress
‘The original sin:’ Hill Republicans blame White House for slow-walking FISA sales pitch
A messy GOP battle over a key government spy authority boiled over in the House this week — but the crisis was months in the making.
White House officials and Republican Hill leaders have tried to pressure GOP hard-liners into approving a clean, 18-month extension of Section 702 of the Foreign Intelligence Surveillance Act that President Donald Trump demanded. But amid a GOP rebellion on Capitol Hill, Speaker Mike Johnson Thursday afternoon punted a vote on the measure for the second day in a row.
The program expires Monday night. Senators went home for the weekend as Johnson continued to pursue a compromise with the holdouts for an extension as long as three years with reforms, and raced to hold a vote.
Now, the finger-pointing among Republicans is rampant and temperatures are running high.
A band of House ultraconservatives — who have long been concerned that warrantless government surveillance of foreign individuals could sweep up data on Americans — shot down Trump and GOP leaders’ long-held plans for the 18-month extension with no reforms earlier this week.
“A clean extension ain’t going to move on the floor,” Rep. Chip Roy of Texas, one of the head House GOP holdouts, warned earlier this week.
In interviews with more than two dozen Republican lawmakers and aides on Capitol Hill involved in the talks, many of whom were granted anonymity to speak freely about the contentious policy debate, the consensus is that the White House is largely responsible for the current breakdown as GOP factions snipe and assign blame.
“This is why we shouldn’t wait until the last minute on these things,” one House Republican fumed Thursday. A congressional GOP aide added, “The White House was too late to come to a decision. That was the original sin.”
A senior White House official disputed the characterization from some Hill Republicans that the administration had taken too long to plead their case. They pointed to a briefing in the Situation Room months ago with Republican lawmakers, during which “the president heard arguments on both sides of the issue.”
The official added, “We’ve had multiple briefings from senior officials, both on the House and Senate side, about the desirability of this program. Again, going back months ago.”
Trump told House Intelligence Chair Rick Crawford (R-Ark.) and House Judiciary Chair Jim Jordan (R-Ohio) that he wanted a clean extension, without reforms, in February. The president arrived at this position, a second White House official said, after “the administration completed a policy process through the interagency and advised POTUS that a clean extension was the best course and solicited views on length from Blue Light News.”
There was also coordination between the White House and Capitol Hill, according to three people familiar and the senior White House official: Johnson requested the reauthorization run for 18 months, and Trump agreed.
The administration succeeded in convincing Jordan, who had previously pushed for changes to Section 702, to publicly support a clean extension following a White House meeting on the subject.
But ultraconservatives on Capitol Hill were harder to convince, with some House Republicans correctly predicting two months ago they were going to have issues as the vote drew nearer. Trump has forced those hard-liners to cave in recent months on other fights, but the spy powers legislation was one area where members have not been as willing to relent.
While Trump officials made outreach to members at least two months ago, Hill engagement ramped up in the days leading up to the scheduled vote. That has included appeals to lawmakers from CIA Director John Ratcliffe, Deputy CIA Director Michael Ellis and Joint Chiefs Chair Gen. Dan Caine, according to five people. Ellis has made personal phone calls to members, according to two people familiar with the pressure campaign.
White House deputy chief of staff James Blair, White House Legislative Affairs chief James Braid and other legislative affairs officials have also been calling individual House Republicans and working through negotiation details, according to six other people with direct knowledge of the conversations.
Noticeably absent from this outreach is Director of National Intelligence Tulsi Gabbard. Her office plays a statutory role in overseeing Section 702 and has historically been a key proponent of the powerful spy powers.
Gabbard in early February expressed concerns to Trump about reauthorizing the statute without additional privacy guardrails, as Blue Light News reported earlier Thursday, though her appeal appears to have been unsuccessful.
And while the administration’s position on Section 702 came into focus in February, there were signs earlier in the month that its position had not fully crystallized. Officials meeting with the Senate Intelligence Committee at that time refused to divulge the White House’s stance on extending the surveillance power and adding reforms, according to five people with knowledge of the meeting. The exchange frustrated Republicans and Democrats on the panel, who are generally supportive of the surveillance program.
Due to a quirk in the law, the administration will still be able to operate the program for nearly a year even if it is not renewed, and privacy advocates have argued that Monday is a false deadline. But without the law on the books, communications providers like Google and AT&T, which the government tasks to surveil foreign messages, could stop complying with those orders.
But White House officials want an extension codified now, all the same. They have been arguing in conversations with lawmakers that the country is at war and national security is paramount amid threats from Iran. Therefore, they say, hardliners should fall in line to back the clean extension without delay, according to five people involved in the conversations.
“The program is critical for the United States military to listen to the conversations of foreign terrorists abroad while we are engaged in a military operation in Iran. That’s what we’ve been telling individuals, as well as the elevated threat levels around the world, as well as the threat from Mexican drug cartels,” the senior White House official said.
Two groups of House GOP hard-liners, after being summoned by Trump Tuesday night, met with officials at the White House. But some of the Republicans declined the invitation.“I’ve heard everything that the executive has to say on FISA,” Freedom Caucus Chair Andy Harris (R-Md.) said in an interview that evening. That meeting, however, marked a shift: Those House Republicans who went to the White House alongside GOP leaders — among them Roy and Reps. Keith Self of Texas, Byron Donalds of Florida, Clay Higgins of Louisiana, Morgan Griffith of Virginia and Warren Davidson of Ohio — took the opportunity to begin negotiations about a framework for a possible agreement around the use of warrants to access certain information.
The discussions included how the White House and GOP leadership needed to make good on a months-old promise to advance legislation that would ban a central bank digital currency. Enough House GOP holdouts late Thursday evening were threatening to still tank the procedural vote to advance the extension if the White House didn’t address the digital currency matter, according to four people with direct knowledge of the matter. “Unless it’s included, there’s enough votes to kill the rule,” Rep. Ralph Norman (R-S.C.) said in an interview Thursday afternoon. But other Republicans, White House officials and Senate GOP leadership are warning that attaching the measure directly would tank the FISA bill.
In exchange for making these concessions, GOP leaders and the White House have been pushing for a Section 702 extension that’s longer than 18 months and closer to three years.
The senior White House official also said Thursday the administration has “focused in on potentially having conversations about reforms to the program that we think would strengthen protections for American civil liberties … those conversations are ongoing.”
Jordan, meanwhile, has been helping build support for a clean extension by privately telling some Republicans that, if they can pass this 18-month clean extension now, they could potentially work on warrant reforms later, according to three people with direct knowledge of the discussions. That’s raised some eyebrows internally among House Republicans.
The House delays are leaving barely any time for the Senate to act. Majority Leader John Thune said in an interview Thursday that he’s already started having conversations with his own members about what they would need to clear a FISA extension Monday.
Ultimately, even if GOP leaders strike a deal on changes to the current proposed extension, it could risk support for reauthorization among key Democrats, who Republicans will need to pass the final legislation in a narrowly-divided House. While some House Democrats are expected to help Republicans get the final bill across the finish line — including top Democrat on the House Intelligence Committee, Rep. Jim Himes of Connecticut — Democratic leaders have so far declined to shore up the votes for any fast-tracked process.
“I am deeply skeptical of a straightforward extension,” House Minority Leader Hakeem Jeffries said Thursday, adding he told Johnson a few days ago there was “great Democratic skepticism” on a clean extension.
One Democratic Hill aide said Johnson and Trump did far too little to coordinate their pitch with Democrats, who carried a razor-thin vote to re-up the law in 2024.
“They never came to us,” the aide said.
Congress
GOP, Democrats blast Vought for holding back cash: ‘You don’t have the authority to impound’
Senators from both parties chided the Trump administration Thursday for continuing to withhold funding Congress has approved, more than a year after the White House first froze billions of dollars for temporary “review.”
During White House budget director Russ Vought’s testimony before the Senate Budget Committee, Sen. Chuck Grassley (R-Iowa) scolded the OMB chief for not sending hundreds of millions of dollars the Trump administration is supposed to give states throughout the year to support community services aimed at reducing poverty.
“Congress has appropriated money, and you don’t have the authority to impound it,” Grassley said about the more than $810 million Congress appropriated this year for the Community Services Block Grant program.
That program helps states fund anti-poverty services such as transportation, education and nutrition assistance that serve more than 9 million people each year.
Grassley told Vought that lawmakers “are not getting any answers” as to why the Trump administration hasn’t sent states their quarterly funding from the program. “I want those quarterly allotments released,” Grassley said.
While Vought did not directly address Grassley’s comments, he said at a different point during the hearing that “we have not impounded a single thing.”
Other senators, including Sen. Mark Warner (D-Va.), lamented federal dollars being withheld for the fund that provides capital to small banks and credit unions in underserved areas. For months lawmakers from both parties have pushed back against Trump’s plans to eliminate that program, the Treasury Department’s Community Development Financial Institutions Fund.
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