Congress
Capitol agenda: The shrinking Trump tax cuts
The brutal political realities of the House GOP are about to upend President Donald Trump’s tax pledges.
A permanent extension of Trump’s 2017 tax cuts is under threat, as are a slew of second-term campaign promises, including exempting taxes on tips and overtime earnings and providing tax relief for seniors.
House Republicans are poised to disappoint Trump because they can’t agree on sufficient spending cuts to pay for his desired menu of tax policies under the GOP’s budget reconciliation plan. Speaker Mike Johnson told Republicans in a private meeting Thursday that he’s now targeting $4 trillion in tax cuts – a half-trillion less than many in the GOP had hoped.
It’s setting up a tough day for House Ways and Means Chair Jason Smith. The Missouri Republican is set to meet with Trump Friday, as GOP leaders scramble to keep the tax package from unraveling. Republican lawmakers and aides have been signaling this week that some of Trump’s pledges will have to be temporary to make the budget math work. Johnson also plans to talk with Trump by phone later Friday about the megabill, including the tax piece.
The tensions are rising among House Republicans who see what’s coming.
“Democrats scare some of my members,” said House Budget Chair Jodey Arrington, who chided his colleagues Thursday for getting cold feet on spending cuts. “They paralyze our conference and, quite frankly, frighten us into inaction.”
Even so, some in the White House are relieved that Congress may hold off from deeper cuts to safety-net programs and are privately rooting for swing-district moderates to win out over hard-liners fighting to slash spending.
Some senior Republicans are downplaying Trump’s last-minute push this week to raise taxes on top earners, but it’s still threatening to stir up a bare-knuckle fight within the House GOP conference with precious time running out. People with direct knowledge of the discussions told Blue Light News it appeared to be more about messaging than raising money available in the budget reconciliation bill.
What we’re watching Friday: Be on the lookout for formal markup announcements as Ways and Means, Energy and Commerce and Agriculture try to move ahead with votes on all of these tough policy questions next week.
And look for further fallout from Thursday evening’s SALT spat. New York Republican Reps. Elise Stefanik, Andrew Garbarino, Nick LaLota and Mike Lawler said they’re rejecting a $30,000 cap to the state and local tax deduction, one number House Republicans are discussing. Johnson indicated there wasn’t yet a formal offer.
What else we’re watching:
— Crypto bill crashes: One of the GOP trifecta’s first major policy pushes is in flux after Senate Democrats derailed a long-awaited crypto bill in a procedural vote Thursday. They accused Republicans of moving to a vote too early, but key Senate Democrats said they’re willing to return to the negotiating table to reach a deal. Senate Majority Leader John Thune could bring the stablecoin regulatory framework back up in the coming days.
— The Library of Congress’ next chapter: Trump’s abrupt firing of Librarian of Congress Carla Hayden Thursday evening triggered intense backlash from top Democrats. Some are now calling for the librarian’s appointment to fall under Congress’ purview, rather than the president’s. Rep. Joe Morelle, the top Democrat on the House panel that oversees the library, plans to introduce legislation to that effect. We’ll see if any Republicans join.
— Duffy pitches air traffic overhaul: Transportation Secretary Sean Duffy is calling on Congress to give his agency cash to modernize the nation’s aging air traffic control systems. The former House member is pressing lawmakers to take action quickly so his agency can execute the plan in roughly three to four years. Expect senators to discuss Duffy’s proposal when Commerce Chair Ted Cruz holds a hearing on aviation safety and air traffic control next week.
Jasper Goodman, Benjamin Guggenheim, Chris Marquette, Meredith Lee Hill, Sam Ogozalek, Oriana Pawlyk, Katherine Tully-McManus and Nicholas Wu contributed to this report.
NEW YORK — With just five days to go until the primary election in New York, Mayor Zohran Mamdani issued a stark warning to members of Congress who believe “incumbency is a substitute for action”: Watch out.
“People often ask me what I think of the state of the Democratic Party,” Mamdani said to the crowd at the Kings Theatre in Brooklyn as he boosted his endorsed congressional candidates. “This slate here today is our answer. The Democratic Party must change.”
The democratic socialist framed Tuesday’s election as much more than what that means for New York, though. In recounting how people also ask him about the 2028 presidential election, he put it bluntly: “It starts now. It starts on Tuesday.”
“For far too long, our party has seen its job as managing decline instead of delivering material change for working people,” Mamdani said. “That old way of thinking will lose on Tuesday. And frankly, it will lose in South Carolina and New Hampshire. It will fall short of 270 electoral votes, because the party of the past will not be what leads us into the future.”
Mamdani, joined by Vermont Sen. Bernie Sanders, urged his supporters to show up for his endorsed candidates “the way you showed up for me.” They include former New York City Comptroller Brad Lander, who’s challenging two-term Rep. Dan Goldman; state Assemblymember Claire Valdez, who’s vying for retiring Rep. Nydia Velázquez’s seat; and community organizer Darializa Avila Chevalier, who’s trying to unseat five-term Rep. Adriano Espaillat, the chair of the Congressional Hispanic Caucus.
Mamdani’s endorsed slate of legislative candidates were at the rally, too.
The rally featured standard stump speeches from the candidates, highlighting the need to support working class New Yorkers and immigrants. Speakers called out the American Israel Public Affairs Committee, the pro-Israel group that has loomed over many of these primaries — despite no evident spending from its independent expenditure arm. Sanders also emphasized his call to ban super PACs, which have reshaped primaries across the city.
Taking place just hours after the massive ticker-tape parade celebrating the Knicks’ historic championship, there were also Knicks references galore.
“I hate to break it to you, but OG Anunoby is not here to save the day,” said Mamdani, who was wearing a Knicks jersey under his suit. “The only hands we can count on are ours.”
Sanders, who is wildly popular in New York, previously endorsed Valdez and Lander. Both Valdez and Avila Chevalier are members of the Democratic Socialists of America and are backed by the city chapter in their bids. Sanders had not officially endorsed Avila Chevalier prior to the rally.
“Why are progressives and socialist candidates winning elections all across this country?” Sanders asked. “The answer in my view is not complicated. The working class of America understands that our current economic system is rigged, that it is designed to benefit the wealthy and the powerful.”
Polling has shown Lander with a lead over Goldman, and a tight race for Velázquez’s seat. Public polling is scarce in the Espaillat race, but recent internal surveys suggest Avila Chevalier is posing a real challenge to the incumbent. Mamdani endorsed her just weeks ago, much later than Lander and Valdez, but his engagement in the race has significantly elevated its profile.
“Six months ago, they told us this race was over before it started,” Avila Chevalier said at the rally. “They told us Adriano was untouchable, that he was an institution, that you don’t run against someone like him and win. That this district was his, and that we should wait our turn. And they said it with such confidence, like the outcome had already been written. Look around. Look at what we’ve built.”
Mamdani’s decision to get involved in congressional races is stress-testing how the new mayor navigates relations with powerful, well-respected party figures — many of whom he’s on the opposite side of.
Mamdani’s endorsement is expected to be a significant asset for his picks; he had dominant performances across these districts in last year’s mayoral primary. And that shine doesn’t seem to have dulled. Recent polling has shown that Mamdani has high approval ratings.
Goldman did not support Mamdani during last year’s mayoral primary or the general election, as Lander has often pointed out. Espaillat backed former Gov. Andrew Cuomo in the primary, but supported Mamdani in the general election. Valdez’s opponents, Brooklyn Borough President Antonio Reynoso and city Council Member Julie Won, both supported Mamdani in the primary.
The mayor has been active on the trail for his congressional candidates of choice in the closing stretch of the campaign. And he touted them all in an advertisement that ran during the first game of the Knicks’ finals run.
Still, Lander has tried to keep some distance. When asked at a recent press conference why he would appear in that ad with Avila Chevalier, who attended a pro-Palestinian rally the day after Hamas’ Oct. 7 attack in 2023 — the same rally Lander said he left the DSA over — he said it was an “opportunity to show New Yorkers that politics can be a team sport.” He also clarified that he has not endorsed candidates in any other congressional primaries.
Avila Chevalier told reporters that she went to that rally to “stand against” Israel engaging in “a response that is often disproportionate and creates a greater loss of life.” She added that she has “condemned Hamas” and does “not believe that celebrating the loss of anybody’s life is OK.”
Kings Theatre isn’t located in any of the districts these congressional hopefuls are trying to represent — though it neighbors the seats that Lander and Valdez have their eyes on.
It’s especially far from Espaillat’s district, which includes parts of upper Manhattan and the Bronx.
While handing out campaign literature to people walking out of the subway in Hamilton Heights, Blue Light News asked Espaillat if he had thoughts about Avila Chevalier appearing at the rally.
“I’m rallying right here in my district with my constituents — not in Brooklyn,” he replied.
Jason Beeferman contributed to this report.
Retirement groups are calling on Congress to investigate Meta over a wave of social media scams targeting older Americans.
In a letter sent Thursday to House Homeland Security Committee Chair Andrew Garbarino (R-N.Y.) and ranking member Bennie Thompson (D-Miss.), the groups alleged Meta has been slow to take down fraudulent ads, leaving seniors vulnerable to financial loss. The letter, shared exclusively with POLITICO, was signed by the Alliance for Retired Americans, the American Postal Workers Union Retirees and the American Federation of Teachers, among others.
“Fraudulent Medicare ads have proliferated on Meta platforms and too many seniors are getting scammed while Meta profits,” said Richard Fiesta, executive director of the Alliance for Retired Americans. “We are calling on Congress to investigate how these scams are allowed to spread, what Meta knew about them, and why stronger protections are not in place. Seniors should not be left vulnerable while scammers and tech companies cash in.”
The letter’s demands follow a report published last month by the Center for Countering Digital Hate, a nonprofit advocacy group, which alleged that Meta has profited by leaving up fraudulent ads, many of which target Medicare recipients.
“Scammers are determined criminals who use increasingly sophisticated tactics to defraud people and evade detection,” Meta spokesperson Andy Stone said in a statement. “We aggressively fight scams on and off our platforms because they’re not good for us or the people and businesses that rely on our services and for years we’ve been one of law enforcement’s strongest partners in the fight against this type of online crime — identifying criminals, disrupting their crimes and helping bring them to justice.”
Stone pointed to several examples of Meta’s efforts to combat scams on its platform, including a recent collaboration with U.S. and Thai law enforcement to disrupt online scams.
It’s not the first time Meta has faced scrutiny over the scams: Sens. Richard Blumenthal (D-Conn.) and Josh Hawley (R-Mo.) urged the Federal Trade Commission and the Securities Exchange Commission to open an investigation into the company in November after Reuters reported that Meta in internal documents projected 10 percent of its 2024 revenue would come from fraudulent ads. And in February, a group of bipartisan lawmakers pressed Meta CEO Mark Zuckerberg over its plans to prevent and combat fraud on its platforms.
Reps. Dan Meuser (R-Pa.) and Lou Correa (D-Calif.) also introduced bipartisan legislation earlier this year to combat predatory scam ads.
Congress is expected to send a landmark, bipartisan housing affordability bill to President Donald Trump’s desk by the end of next week as the Senate and House schedule action on the legislation in the coming days.
The Senate has teed up the 21st Century ROAD to Housing Act for final passage on Monday, after completing all its necessary procedural votes this week.
The legislation will then move on to the House where GOP leadership plans to open debate on Wednesday, with a vote expected as early as the same day, according to six people familiar with the vote granted anonymity to discuss plans.
House leadership plans to suspend the rules, requiring a two-thirds majority vote, to speed up the bill’s path to Trump’s desk. Final passage could be pushed to Thursday depending on timing, the people said.
The housing bill aims to tackle housing affordability and boost homeownership and supply ahead of a midterm election dominated by cost-of-living concerns.
The four lawmakers leading the negotiations over the legislation — Senate Banking Chair Tim Scott (R-S.C.), ranking member Elizabeth Warren (D-Mass.), House Financial Services Chair French Hill (R-Ark.) and ranking member Maxine Waters (D-Calif.) — came to an agreement Tuesday afternoon after months of back and forth on the bill’s contents.
The housing affordability legislation, which the White House supports, contains a provision limiting the role of large institutional investors in the single-family housing market, which was a key condition for Trump to sign the bill.
- Kennedy and Wright cheer on US
- The politician who kicked his way to power
- The US-Australia face-off that isn’t happening
- The soccer boss in Mark Carney’s ear
- Vance says US allows more than dozen ships through to Iranian ports
- Regulators back Trump plan to speed power to energy-hungry AI data centers
- The accidental American
- The Americans who want to see Australia do well
- Steil pushes bill to ban lawmakers from political prediction markets
- Australian media are launching a MAGA counterpress
-
Politics1 year agoFormer ‘Squad’ members launching ‘Bowman and Bush’ YouTube show
-
The Dictatorship1 year agoLuigi Mangione acknowledges public support in first official statement since arrest
-
Politics1 year agoFormer Kentucky AG Daniel Cameron launches Senate bid
-
Uncategorized2 years ago
Bob Good to step down as Freedom Caucus chair this week
-
The Dictatorship1 year agoPete Hegseth’s tenure at the Pentagon goes from bad to worse
-
The Josh Fourrier Show2 years agoDOOMSDAY: Trump won, now what?
-
Politics1 year agoBlue Light News’s Editorial Director Ryan Hutchins speaks at Blue Light News’s 2025 Governors Summit
-
The Dictatorship9 months agoMike Johnson sums up the GOP’s arrogant position on military occupation with two words