Congress

GOP moves to let Obamacare subsidies expire as Trump promises ‘money to the people’

Published

7 months ago

December 10, 2025

Republican leaders on Capitol Hill are moving decisively away from extending key Obamacare tax credits that help more than 20 million Americans pay for health insurance — following direct cues from President Donald Trump while also stoking ire among many in the GOP who fear severe political repercussions.

In a Monday interview with POLITICO, Trump refused to endorse a continuation of the expiring subsidies, even as his administration faces mounting pressure to address rising costs for Americans. He instead laid out his own vision for health care: “I want to give the money to the people, not to the insurance companies.”

Senate Republicans now plan to offer a proposal for a vote Thursday that would let the subsidies expire and instead encourage the use of health savings accounts. That abrupt shift in strategy is in turn putting new pressure on House GOP leaders to come up with their own health plan, according to four people who attended a closed-door meeting with Speaker Mike Johnson and senior Republicans Tuesday afternoon.

Yet after months of pressure from competing factions, lawmakers inside the meeting didn’t reach a conclusion and Johnson is still trying to figure out what that plan should be. House GOP staff Tuesday were prepping a health care framework to give Republicans something to vote on next week before they leave Washington for the holidays — one that, for now, does not include an extension of the enhanced Obamacare subsidies.

For many Republicans facing tough reelection races and even some in deep-red areas with a high reliance on the tax credits, following Trump’s one-sentence policy prescription would harm Americans and make for political disaster as the Dec. 31 expiration of the tax credits looms.

“We can agree that the current construct is flawed, but that letting them expire is not acceptable,” Rep. Brian Fitzpatrick (R-Pa.) said in an interview Tuesday. “That doesn’t work.”

Fitzpatrick is pushing a competing proposal that would extend the tax credits for two years while imposing an income cap and other eligibility restrictions. Fitzpatrick’s bill also includes new HSA provisions and a bipartisan package aimed at lowering drug costs, but he said it was unrealistic for GOP leaders to completely replace the subsidy framework in a matter of weeks.

“They can just dig themselves into an ideological corner all day long — it’s not fixing the problem,” Fitzpatrick added. “We can’t live in this fantasy land.”

But Johnson appears determined to cobble together a health care framework that will not include even a short-term extension of the subsidies, which can cut premiums for many families by $1,000 a year or more. He blindsided members of his own leadership circle and senior Republicans who have been involved in health care policy work when he announced last week his intentions to hold a vote this month.

“What health care plan?” said one of the senior Republicans who has been involved in the talks and was granted anonymity to share a candid reaction to Johnson’s pledge.

Turning Johnson’s promise into legislation has been difficult. As of Tuesday evening, the House GOP framework centered on an expansion of health savings accounts and funding for cost-sharing reductions — a type of Obamacare subsidy meant to reduce out-of-pocket health costs, according to three people granted anonymity to describe the deliberations.

While the plan does not currently include a temporary subsidy extension, some senior House Republicans say it might still be on the table — including Rep. Lisa McClain of Michigan, the No. 4 GOP leader, who said she believed it was still an option as she left the health care meeting Tuesday.

It’s also still to be determined whether the plan will be offered up as a suite of individual bills or packaged together. But the goal is for GOP lawmakers to have “something” to vote on before the end of next week, according to one of the senior House Republicans involved in the talks — even if there is no time left for the Senate to pass it before the subsidies lapse.

GOP members will be briefed on the talks during their closed-door conference meeting Wednesday morning, according to three people granted anonymity to discuss internal planning. They will not be presented with a formal plan, they said.

The health care sprint also comes as Johnson faces down growing displeasure inside the GOP over his leadership style, where he has repeatedly sought to bulldoze internal dissent and march in lockstep with Trump. In this case, Johnson has so far sided with the bulk of his conference who want to see the Obamacare subsidies expire — even though some Trump aides have counseled that an extension would be politically prudent.

The White House was on the cusp of endorsing a two-year continuation of the subsidies just before Thanksgiving, but top Republicans on Blue Light News were not fully consulted first and moved to quash the idea — to the horror of many in the rank-and-file who favor an extension.

“I don’t think leadership understands just how upset people are,” said one House Republican who among several granted anonymity to speak frankly about internal conversations. “People are getting desperate.”

In fact, according to six other House GOP lawmakers and senior aides with direct knowledge, enough Republicans could sign a discharge petition that would sidestep Johnson and force a vote on extending the expiring subsidies. One of those House Republicans said they would be willing to support a discharge of Fitzpatrick’s legislation, which largely mirrors the White House trial balloon, or another bill from Rep. Jen Kiggans (R-Va.) and is waiting to see details of what Johnson proposes as an alternative.

“We shall see,” the lawmaker said.

Some in the GOP who support an extension have floated a short-term patch until Jan. 30 in order to buy some more time to come up with a deal. Many Republicans in the White House and on Capitol Hill believe that once the tax credits expire, there could be a chance to work out a wider health care deal next month that could tackle issues such as HSAs and drug prices.

While that argument has its merits on paper, people involved in the talks say a short-term punt wouldn’t make much sense for people trying to buy health insurance for the entire year and could create major logistical hassles.

One of the many problems is the White House itself isn’t providing any clear guidance amid all the internal divisions. The Trump administration itself has been and still is deeply divided about allowing the Obamacare tax credits to lapse, according to two administration officials and three senior House Republicans involved in the conversations.

“It depends on who you ask,” said a senior House Republican about the White House’s views on health care.

One White House official said Tuesday that “policy teams are looking at a lot of different avenues” and that “three weeks is actually a lot of time for a lot of stuff to come together.” However, both the House and Senate are set to adjourn for the holidays at the end of next week.

The Senate plan now set for a vote Thursday, from Sens. Bill Cassidy of Louisiana and Mike Crapo of Idaho, quickly won support inside the GOP this week amid fears that the party would look hapless if they did not put up an alternative to Democrats’ plan to extend the subsidies for three years.

But there are still plenty of lawmakers who are anxious about voting to upend the health care system with the deadline looming and no signals from the White House on what Trump would accept.

“There’s just not enough time to do a comprehensive bill,” one House Republican said, adding that the expiring subsidies will be “a problem for everyone” in the GOP.

Jordain Carney, Cheyenne Haslett and Mia McCarthy contributed to this report.

Congress

Senate Ethics dismisses allegations against Ruben Gallego

Published

3 hours ago

June 29, 2026

Blue Light Newsroom

The Senate Ethics Committee has dismissed allegations of misconduct levied against Sen. Ruben Gallego, who stood accused by Rep. Anna Paulina Luna of “campaign finance violations and inappropriate conduct of a sexual nature.”

The charges came following the resignation of the Arizona Democrat’s longtime friend, Rep. Eric Swalwell (D-Calif.), who was forced to step down amid accusations of serious sexual misconduct. Luna, a Florida Republican, sought to implicate Gallego by claiming in an interview on CBS that a woman would come forward about an “incident that occurred between the two of them at the same time and the event was sexual in nature allegedly.”

But in a letter to Gallego sent Monday — which he shared in a public news release — the notoriously inactive Ethics Committee cited Gallego’s “prompt contact with the Committee following media reports of the allegations and appreciated your full cooperation with the Committee throughout the investigation.”

Gallego has maintained he was unaware of the allegations against Swalwell and said in a statement he was a victim of “right-wing conspiracies peddled by far-right activists like Anna Paulina Luna, the White House, and their allies.”

He continued, “I look forward to an apology from Rep. Luna for weaponizing the ethics process while refusing to investigate historic corruption that’s making life harder for families.”

Luna, in a post on X, defended her referral to the Senate Ethics Committee.

“The good news about DC is everyone talks, and eventually the reporters come forward with your texts,” Luna wrote on social media. “Do yourself a favor and keep raising for your legal defense fund. Once a creep always a creep, and you’re gonna need it.”

CORRECTION: An earlier version of this report misstated Rep. Anna Paulina Luna’s state. She represents Florida.

Congress

Rubio, Witkoff to brief Congress on Iran

Published

6 hours ago

June 29, 2026

Blue Light Newsroom

Top deputies of President Donald Trump will brief Congress on the Iran peace talks in a Monday conference call — the first time administration officials have addressed a broad group of lawmakers since Trump signed a “memorandum of understanding” with Tehran earlier this month.

Secretary of State Marco Rubio and Steve Witkoff, Trump’s special envoy to the Middle East, will lead the briefing for all House and Senate members at 4 p.m., according to seven people granted anonymity to discuss the private meeting.

Republicans and Democrats have called for more transparency about the 14-point agreement inked on June 18, which initiated a cease-fire between the two countries. Since then, the U.S. and Iran have continued to engage in hostilities.

Congress

Capitol agenda: Red, white and GOP hard-liner blues

Published

9 hours ago

June 29, 2026

Blue Light Newsroom

House Republicans finally cleared a runway this week to finish some of their top legislative priorities before the July 4 recess.

That is, unless a small band of hard-liners trip up those plans at takeoff.

Speaker Mike Johnson is hoping to move quickly to pass fiscal 2027 appropriations legislation, the annual defense policy bill and a kids online safety bill that has been years in the making. The movement comes after President Donald Trump instructed GOP hard-liners to stop holding up a procedural vote amid a protest from Rep. Anna Paulina Luna and others that the Senate hadn’t passed Trump’s election security bill.

But Luna and other hard-liners are still threatening to tank the procedural vote that could delay the defense policy bill and other measures until they get concessions on the SAVE America Act, amid other demands.

Johnson, for example, had also promised hard-liners a vote before July 4 on a sweeping GOP immigration bill introduced in the prior Congress as H.R. 2, which is highly unlikely to happen.

Johnson for his part has said the House will “pass the SAVE America Act again” by folding parts of it into a third party-line reconciliation bill. But the slimmed-down version he’d need to pursue in order to meet strict Senate rules for the budget process is already being panned by hard-liners as insufficient.

That reconciliation bill is also already delayed. House Republicans aren’t on track to meet their goal of advancing its framework before the July 4 recess as members on the Budget panel balked over how to pay for the legislation in a closed-door meeting last week.

“Time is of the essence, given how many legislative days we have,” House Energy and Commerce Chair Brett Guthrie, who is sponsoring the kids online safety legislation, said in an interview last week. “If we lose a week, that would be important.”

Meanwhile, Democratic leadership is grappling with their own heated internal divisions this week. Members are split over supporting the adoption of an amendment to a fiscal 2027 spending bill from Rep. Thomas Massie that would end Israel aid and cut the overall foreign military aid program by $3.3 billion.

Appropriations ranking member Rosa DeLauro did not instruct her colleagues on how to vote during a rare Sunday evening caucus call, two sources granted anonymity to discuss the private meeting tell Mia and Riley. Leaders did, however, criticize the amendment as poorly written.

One other item this week that could split members of each party: House lawmakers are also slated to vote on a rewritten war powers resolution from Rep. Rashida Tlaib to reign in Trump administration military actions in Lebanon. Leadership worked with Tlaib to come up with new language last month that is expected to garner more Dem support, but the resolution is still expected to fail without GOP votes.

What else we’re watching:

— SENATE GOP GETS ANTSY ABOUT NOMINATIONS: Some Republican senators are unsettled by Trump’s apparent lack of urgency in filling vacant posts, even as GOP control of the chamber beyond the midterms is increasingly in doubt. There are more than two dozen federal court vacancies. Labor secretary, FDA commissioner and scores of other open positions do not have nominees, and a senior White House official said Trump is in no rush to fill them. “We’re running short on time,” said Sen. Tommy Tuberville, a member of Senate HELP, which oversees health, labor and other issues.

—RICK SCOTT SAYS HE’S JUST TRYING TO HELP: Fresh off his controversial Trump invite to a Senate GOP lunch last week, Sen. Rick Scott told Blue Light News in an interview he’s trying to make a mark — not trying to challenge Senate Majority Leader John Thune. Scott insists that neither his invitation to the president nor a letter he circulated afterward outlining how the Senate GOP should be preparing for the midterms should be seen as a prelude to a leadership challenge. The Florida Republican said he’s perfectly happy running the conference’s conservative Steering Committee and predicted Thune would easily secure another term as leader. What has become eminently clear in recent weeks is that Scott — after a long career in business, two terms as governor and nearly eight years as senator — just isn’t a back-bench kind of guy.

Meredith Lee Hill, Riley Rogerson, Alex Gangitano, Jordain Carney and Cheyenne Haslett contributed to this report.