Congress
Capitol agenda: GOP struggles on affordability message
The Senate is set to vote Thursday on whether to extend Obamacare health insurance subsidies that expire in 23 days. How Republicans will engage remains up in the air, as the party struggles more broadly to reach consensus on a range of “affordability” issues.
Here’s where things stand heading into the big vote.
The Senate GOP’s missing plan — Senate Democrats are poised to get a vote on a three-year extension of Affordable Care Act tax credits — a bill that will likely fail. Republicans are leaning against holding a separate vote on their own alternative as they face internal divisions over what to put forward. The decision isn’t final, and some Republicans could try to advance proposals via unanimous consent.
Mysterious House action — Speaker Mike Johnson surprised a number of Republicans last Thursday when he said he planned to roll out a health care framework in time to present to his conference by early this week. The House GOP strategy is expected to be a major topic of discussion during a retreat of committee staff directors and leadership staff that wraps tonight in Boston. The House Republican plan is likely to encompass bills that committees have been working on to boost health care options beyond the ACA — not an extension of Obamacare subsidies.
The big picture on the GOP and affordability — Republicans’ struggle over how to address the expiring ACA subsidies — a lapse that would raise health premiums for millions of Americans — is representative of broader GOP floundering over how to decisively respond to cost-of-living concerns ahead of the midterms.
Beyond health care, the Trump administration’s proposal to distribute $2,000 rebate checks has gotten a lukewarm response on Blue Light News, and intraparty sparring has weighed on other smaller bills to address things like housing costs and student debt. Top Republicans acknowledge they haven’t done enough to sell the economic benefits of the “one big, beautiful bill,” and internal divisions threaten any attempt to follow up on it.
Just this weekend, congressional leaders released a compromise version of the annual National Defense Authorization Act without housing legislation sought by Senate Banking Chair Tim Scott (R-S.C.) and ranking member Elizabeth Warren (D-Mass.), after House Financial Services Chair French Hill (R-Ark.) and other key House Republicans objected.
President Donald Trump himself has recently called the emphasis on affordability a “hoax” perpetrated by Democrats, even as 37 percent of those who voted for him last year say the cost of living in the U.S. is the worst they can remember it being, according to a new POLITICO Poll.
“We haven’t probably messaged as effectively as we should,” Senate Majority Leader John Thune said in an interview. “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.”
What else we’re watching:
— NDAA on track for House vote this week: Compromise NDAA text is out and House GOP leaders are targeting a floor vote Thursday or Friday. The first stop is a Rules Committee hearing, which could come as early as Tuesday.
— Government funding action: House GOP leaders are eyeing putting at least one appropriations bill if not two on the floor next week, right before they leave for the holiday recess. One senior House Republican says Appropriations Chair Tom Cole (R-Okla.) and other appropriators are expected to lean on leadership in the coming days.
Jordain Carney, Benjamin Guggenheim, Meredith Lee Hill, Jasper Goodman, Connor O’Brien and Mia McCarthy contributed to this report.
Congress
Senate Ethics dismisses allegations against Ruben Gallego
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
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
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.
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