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Democrats are ready to campaign on expired Obamacare subsidies

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Obamacare subsidies used by more than 20 million expired Thursday. Now Democrats are ready to make them a centerpiece of their midterm campaigns.

The lapse of enhanced premium tax credits, first passed as a pandemic-era relief measure under President Joe Biden in 2021, will immediately hit the pocketbooks of voters — some of whom will see their monthly insurance premiums rise by hundreds of dollars.

Efforts to extend them in some fashion continue on Capitol Hill, but Democratic lawmakers and strategists are already moving to turn the expiration of the subsidies into a potent election-year attack on congressional Republicans. They note that unlike other Democratic messaging targets — such as recent GOP Medicaid cuts that won’t kick in until after midterm ballots are cast — the lost tax credits are already tangible proof of what’s at stake on Election Day.

“The public now gets that the subsidies are what’s keeping health care costs down,” said Rep. Ami Bera (D-Calif.). “I think the public’s angry. So I think they will blame the party in charge.”

The strategy has been months in the making. Mindful of how the GOP’s efforts to rein in Obamacare powered their massive gains in the 2018 midterms, top party leaders decided in September to make health care the focus of the government funding fight.

That posture led to a record 43-day shutdown, and while some Senate Democrats ultimately agreed to reopen the government without securing an extension of the tax credits, many in the party are increasingly confident they succeeded in putting the issue into focus ahead of the election year.

They also believe it will play into a broader messaging push around affordability — attacking President Donald Trump and congressional Republicans for their failure to address rising costs, of which insurance premiums are just one conspicuous challenge facing Republicans.

“It’s part of the top issue, which is cost of living — whether it’s groceries, gas, housing, energy costs,” said Rep. Chris Deluzio (D-Pa.). “Health care seems to be top of mind as something that Congress can actually do to bring down the costs.”

A KFF poll released in December found that large majorities of enrollees in Obamacare marketplace plans want the subsidies to continue, regardless of party. About three-quarters of that group said they would blame Trump or Republicans in Congress if the subsidies were to lapse.

Republicans have encountered difficulties forming a coherent counterattack. Trump has questioned whether affordability is even a problem, calling the focus on living costs a “hoax” perpetrated by Democrats and the media. He has instead focused on robust economic growth as a measure of his administration’s success.

On Capitol Hill, top GOP leaders have criticized the expiring subsidies as wasteful — subsidizing some high-income households and susceptible to fraud — but they have not coalesced around a plan to offer relief to the millions of Americans who buy insurance on Obamacare marketplaces. A package of health care measures passed by the House last month on a party-line vote included some conservative proposals to deregulate insurance markets, but they would have little immediate effect before the midterms.

Instead, Republicans are preparing to run on last year’s megabill, which included tax cuts and other provisions that will start kicking in this year. This, they believe, will help them hold onto their congressional majorities.

“House Republicans delivered historic tax relief for working families and are building on it in the new year,” said NRCC spokesperson Mike Marinella. “Democrats spent the year blocking commonsense solutions [for the subsidies] and are now having a temper tantrum over a policy cliff of their own making. Their inability to find a consistent message that sticks proves how out of touch they are with the American people.”

Democrats’ party campaign arm is already geared up to push a health-care focused message for the next 10 months. Its leaders have laid out why they believe it’s a key issue heading into the midterms and have already run ads and rented billboards highlighting the GOP’s opposition to continuing the subsidies.

“Make no mistake, the blame behind the skyrocketing health care costs millions are facing today is squarely at the feet of House Republicans, and the American people know it,” DCCC Chair Suzan DelBene (D-Wash.) said in a statement. “Instead of putting forth a serious proposal to address spiking health care costs, House Republicans chose to focus on delivering massive tax breaks for the wealthiest few — never even allowing a floor vote to save the tax credits before their expiration.”

It is true no vote took place before the expiration, but jitters about an electoral backlash prompted a handful of House Republicans to take the rare step last month of circumventing GOP leadership and signing onto an effort backed by House Minority Leader Hakeem Jeffries to force a floor vote on a three-year extension of the expired subsidies.

That vote is now expected to take place in the coming weeks, though Senate Majority Leader John Thune said he has no intention of holding a vote in his own chamber, and even Senate Minority Leader Chuck Schumer has played down the prospects of a bipartisan extension.

“Once Jan. 1 comes and everyone is locked into their insurance proposals, you can’t put the toothpaste back in the tube,” he said last month.

The purple-district Republicans said they intend to keep trying, and they are coordinating with a bipartisan group of senators that is trying to strike a late compromise to save the subsidies. But Democrats believe it is too little, too late — even as they say it is a telling move.

For the vulnerable Republicans “to come on at the 11th hour shows they get it,” said Rep. Madeleine Dean (D-Pa.). “Their constituents are going to be mighty mad, and they’re feeling it already.”

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Congress

House Republicans are publicly cheering Trump’s Iran war. Privately, many are worried.

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The vast majority of congressional Republicans are publicly supportive of President Donald Trump’s decision to launch a war on Iran. But many are harboring private misgivings about the risks to American troops and global stability — as well as their own political fortunes — should the military campaign drag on indefinitely.

Trump’s comments this week that the bombing could last “four to five weeks” or more, that he doesn’t care about public polling and that the U.S. will do “whatever” it takes to secure its objectives are among the factors that have put lawmakers on edge.

Some of the anxieties have started emerging publicly.

“The constitutional sequence is, you engage the public before you go to war unless an attack is imminent. And imminent means like, imminent — not like something that’s been over a 47-year period of time,” Rep. Warren Davidson (R-Ohio), a former Army ranger, said Tuesday.

Rep. Eli Crane (R-Ariz.), a combat veteran who served in the Iraq War and has cautioned in the past against regime change efforts, called it “a very dicey, a very dynamic situation right now” on the Charlie Kirk Show Monday while also making clear he would give Trump deference.

“I hope it works out,” he added. “Military operations like this can go sideways so fast, you know, it will make your head spin.”

But a wider group of House Republicans granted anonymity to speak candidly shared deeper concerns about the strikes. All said they would stand with Trump and Speaker Mike Johnson this week to oppose a largely Democratic effort to force votes on restraining the president. But they said their support was not guaranteed over the long term.

“Most Republicans want clear objectives, clearer than they are now,” said one House Republican, who added members have pressed GOP leaders and White House officials to be more consistent in articulating the administration’s military goals.

Another was troubled by Trump’s own shifting statements on when the bombing campaign might wrap up, whether he is seeking the fall of the Islamic regime and whether ground troops might ultimately be necessary.

“Sounds a little bit like President Lyndon Johnson going into Vietnam, doesn’t it?” the lawmaker said.

Trump officials and top House GOP leaders have already moved to ease potential member concerns. Johnson, for instance, said leaving a classified briefing Monday that “the operation will be wound up quickly, by God’s grace and will.”

“That is our prayer for everybody involved,” he added.

A White House memo sent to congressional Republicans Monday outlined several military objectives for the bombing campaign and said Trump should be “commended” for taking on a hostile state sponsor of terrorism.

But despite denying that Trump had acted in pursuit of regime change, the document also said the Iranian regime “would be defeated” and included other contradictory statements about the reasons for the strikes — while trying to sidestep the question of whether the strikes constituted a “war,” a word Trump himself has used.

Beyond the fears of a prolonged military engagement that could be costly in dollars and American lives, Republicans are also facing the prospect of a stock market tumble and rising gas prices that could fall hardest on vulnerable incumbents ahead of the midterms. Many of those members promised their constituents, much as Trump did, that they would not engage in endless war.

The planned Thursday vote on a bipartisan war powers resolution has surfaced some of the GOP discomfort, even as party leaders and White House officials whip members against it — including those most at risk of losing their seats.

Rep. Thomas Massie (R-Ky.), who is co-leading the war powers push with Rep. Ro Khanna (D-Calif.), pointed to the White House memo as further evidence of incoherence on the administration’s part.

“So they’re going to defeat a terrorist regime that rules a country of 90 million people, but that’s not war?” he said in an interview.

Johnson argued Monday it would be

Also raising concerns in advance of the vote is Davidson, who has long railed against extended U.S. wars abroad. He said in a social media post Monday it was “troubling” that Secretary of State Marco Rubio said Monday that an imminent Israeli attack on Iran forced the U.S. to strike. He also raised concerns to reporters Tuesday about some of the administration’s claims.

House Intelligence Chair Rick Crawford (R-Ark.) said in an interview Tuesday he didn’t think the war powers vote was necessary and that Trump was operating within his legal authority.

The vote, he said, was “a way for individuals to sort of register their displeasure or make a political statement.”

Even if the war powers measure is defeated, some Republicans say an effort to restrain Trump could reemerge if the conflict drags on or Trump commits ground troops to the conflict. “If we’re talking months, not weeks, then you will see another vote,” said a third House Republican who added that Trump had some “leeway” for now.

Johnson, meanwhile, is channeling any intraparty concerns about Trump’s war into another vote this week on a stalled Homeland Security spending bill — an attempt to keep the focus on Democrats’ opposition to funding for TSA, FEMA and other agencies as a department shutdown approaches the three-week mark.

He is also arguing, as he told reporters after a classified briefing Monday, that the war powers vote is “dangerous” at a moment when U.S. troops were in harm’s way and that Republicans would act to “put it down.” The strikes, Johnson added, did not need advance congressional approval because they were “defensive in nature.”

Those arguments have resonated with most House Republicans, who say they’re willing to give the president time.

“I think so far, the Pentagon seems to have a good plan,” said Rep. Jeff Crank (R-Colo.), a member of the Armed Services Committee who said he would give Trump “six weeks or … eight weeks or whatever we need to accomplish the missions that we set out.”

“The worst thing we could do is go in and then … to pull back or cut short, whatever our objectives are,” he added. “We’re there. We need to get the objectives finished.”

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Former White House counsel Kathryn Ruemmler called to testify in House Oversight’s Epstein investigation

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The House Oversight and Government Reform Committee is requesting that Kathryn Ruemmler, the former White House counsel under President Barack Obama and the exiting top lawyer at Goldman Sachs, speak with investigators about her relationship with convicted sex offender Jeffrey Epstein.

Ruemmler will soon resign from Goldman Sachs amid the mounting scrutiny over her close relationship with Epstein. Material released by the Justice Department revealed that Epstein called her when he was arrested for sex crimes.

“Due to public reporting, documents released by the Department of Justice, and documents obtained by the Committee, the Committee believes you have information that will assist in its investigation,” said Oversight Chair James Comer in a letter to Ruemmler obtained by Blue Light News.

He requested that she appear for a transcribed interview on the morning of April 21, but that date could be subject to change.

Goldman Sachs declined to comment. Ruemmler, through a spokesperson, has said she regrets knowing Epstein. She has not been charged with any misconduct.

The letter was reported earlier by The Wall Street Journal.

Ruemmler is one of a number of powerful public figures in the U.S. who has faced consequences for their relationships with Epstein.

Brad Karp, the former chair of the legal giant Paul Weiss, left his post atop the firm amid the fallout over his communications with Epstein.

Earlier Tuesday, Comer announced Commerce Secretary Howard Lutnick has agreed to speak with his panel after correspondence released by DOJ showed that Lutnick maintained ties to Epstein following the disgraced financier’s 2008 sex crime conviction.

Lutnick has not been charged with any wrongdoing.

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Trump takes aim at banks over crypto bill talks

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President Donald Trump on Tuesday accused the banking industry of holding up landmark cryptocurrency legislation, writing on social media that Wall Street firms “need to make a good deal with the Crypto Industry” to unstick a pending digital asset bill in the Senate.

His post comes as White House officials are working to resolve a lobbying spat between the banking and crypto sectors over whether digital asset exchanges should be able to offer rewards programs that pay yield to users who hold dollar-pegged digital tokens known as stablecoins. The dispute has stalled pending crypto market structure legislation in the Senate.

“The Banks are hitting record profits, and we are not going to allow them to undermine our powerful Crypto Agenda that will end up going to China, and other Countries if we don’t get The Clarity Act taken care of,” he said, referring to the market structure bill, which would establish a new regulatory framework favorable to crypto companies.

Trump’s post is a win for the crypto industry, which is fighting against a lobbying effort by the banking industry to bar any type of yield payments on stablecoins. He effectively sided with the crypto industry’s position, writing that “Americans should earn more money on their money” — a line that crypto executives have used to argue in favor of their rewards programs. Banks warn that allowing consumers to earn yield on stablecoins could spark deposit flight from traditional financial institutions and threaten lending.

Despite Trump’s new position, the stalled market structure bill likely still does not have the votes to advance in the Senate without a resolution to the stablecoin yield fight that banks are satisfied with.

The talks over the issue, which are being mediated by White House crypto adviser Patrick Witt, have dragged on past an unofficial March 1 deadline by which administration officials hoped to resolve the dispute. The White House convened a series of meetings featuring representatives from the two industries, but an agreement has remained elusive.

“The U.S. needs to get Market Structure done, ASAP,” Trump wrote.

He also said a previously signed law dubbed the GENIUS Act, which created new rules for how stablecoins are regulated, “is being threatened and undermined by the Banks, and that is unacceptable — We are not going to allow it.”

The crypto industry “cannot be taken from the People of America when it is so close to becoming truly successful,” he wrote.

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