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Capitol agenda: GOP struggles on affordability message

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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.

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Pentagon and elections bills could be combined in bid to unfreeze House floor

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Speaker Mike Johnson said Monday he plans to deploy an unusual procedural maneuver in a bid to unfreeze the House floor this week, seeking to send the annual Pentagon policy bill and the GOP elections bill known as the SAVE America Act to the Senate in a single package.

That is likely a recipe for a continued standoff between the two chambers over the SAVE America Act, which has stalled in the Senate for months due to internal GOP divides. Under Johnson’s plan, the annual defense policy bill, which typically passes every year with large bipartisan majorities, could become a collateral victim of the impasse.

Asked in brief interview if he had talked to Senate Majority Leader John Thune about his plans, Johnson replied, “I have to do my job in the House, and they’ve got to do their job in the Senate, so we’ll see what happens.”

Johnson is seeking to placate House conservative hard-liners, led by Florida Rep. Anna Paulina Luna, who have threatened to oppose the procedural measures that give Republicans control of the floor unless they agree to tougher tactics meant to force the Senate into passing the elections bill.

House GOP leaders discussed the plan to merge the two bills over the weekend as Luna pushed to amend the defense bill directly.

She did not say in an interview Monday whether Johnson’s gambit would suffice: “We want it baked together, not able to be stripped out,” she said.

But the Senate is free to work its own will, and members of that chamber are likely to reject any defense bill that has the partisan elections bill attached. That would set the stage for GOP leaders to strip it out when the House and Senate hash out the differences between their competing Pentagon bills later this year.

Johnson, meanwhile, is pushing a separate plan to pass a slimmed-down version of the SAVE America Act through the party-line budget reconciliation process — an option hard-liners have all but rejected.

“I don’t think that that can be done,” Luna told reporters Monday.

He’s also facing another complication: The version of the SAVE America Act he is proposing to attach to the Pentagon bill doesn’t include the latest demands for the bill from President Donald Trump — including a near-total ban on mail voting that is opposed by many Republicans.

Jennifer Scholtes contributed to this report.

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Top Trump officials face bipartisan questions in first all-member Iran briefings

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Lawmakers of both parties questioned Secretary of State Marco Rubio and top Middle East envoy Steve Witkoff Monday in the first broad congressional briefings on President Donald Trump’s Iran deal.

While Democrats asked some of the sharpest questions, participants in an afternoon conference call with House members said, Rep. Darrell Issa (R-Calif.) at one point pressed the administration officials on the fate of Iran’s stockpile of near-bomb-grade uranium.

According to two people granted anonymity to disclose the private remarks, Witkoff and Rubio repeated assurances the administration has privately made to select lawmakers in prior briefings — that the goal is to negotiate a final deal that would prohibit Iran from keeping its highly enriched uranium.

The memorandum of understanding Trump signed earlier this month, they said, was meant to launch those negotiations. Witkoff, the people said, added that the technical team involved in that part of the talks was traveling from Switzerland to Qatar, where talks between the U.S. and Iran are set to happen Tuesday.

Democrats, meanwhile, pushed the administration for more details on what financial benefits Iran could reap under the memorandum — including proceeds from previously sanctioned oil sales.

Rep. Debbie Wasserman Schultz (D-Fla.) went back and forth with Rubio and Witkoff over the lifting of the oil sanctions, two other people granted anonymity on the House call said. The officials eventually cut off the conversation and ended the call.

At another point, Rep. Madeleine Dean (D-Pa.) raised concerns about Witkoff’s business interests in the Middle East as he’s negotiating with Iran, prompting a sharp defense from Rubio, those people said.

Senate Minority Leader Chuck Schumer asked Rubio and Witkoff about the oil sanctions during a separate all-senators call Monday, saying in a statement afterward that they “confirmed to me that Iran will reap billions in oil revenue while retaining dangerous leverage over the Strait of Hormuz.”

“If this is the administration’s defense behind closed doors, Secretary Rubio should make it under oath, in public, before the Foreign Relations Committee,” Schumer added, calling the briefing “delayed, deficient, and devoid of details.”

An administration official granted anonymity to speak candidly countered on Schumer’s characterization, noting that he had previously gotten a briefing of the deal as part of a group of top leaders engaged on national security matters. Schumer, the official said, had the opportunity to ask multiple follow-up questions on the Senate call.

A separate group of White House officials briefed top congressional leaders and key committee chairs in a classified briefing in the Capitol later Monday.

The administration has faced bipartisan skepticism over multiple provisions of the memorandum of understanding — particularly the lifting of oil sanctions and a $300 billion reconstruction fund that many Senate Republicans fear will help fuel Iran’s military and regional proxies.

Rubio and Witkoff sought to ease concerns about the slow reopening of the Strait of Hormuz — the critical trade route whose closure has sparked higher fuel and fertilizer costs. Both officials said more mine removal is required, and Witkoff indicated that Iran broke the terms of the Trump-signed deal by launching a drone attack on a passing ship over the weekend.

They also sought to assure lawmakers that Iran has received no money under the memorandum — especially not directly from American sources. Administration officials have previously pledged in smaller briefings that the reconstruction fund won’t include U.S. funds.

Sen. Steve Daines (R-Mont.) called the Senate briefing a “productive conversation” but said “much of what I heard today is similar to what I heard last week” during a dinner at Vice President JD Vance’s residence.

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Senate Ethics dismisses allegations against Ruben Gallego

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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.

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