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Capitol agenda: Senate Dems’ last-minute shutdown gambit

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Senate Democrats are still not committing to helping Republicans pass a seven-month funding stopgap, edging the country closer to a government shutdown as they attempt to force a vote on a shorter funding patch.

After two days of lengthy closed-door caucus talks (and another planned for Thursday), Democrats emerged with an attempted strategy Wednesday afternoon: Democrats won’t give Republicans the votes to advance the stopgap funding bill, known as a continuing resolution or CR, until they get an amendment vote on a “clean” CR through April 11.

Democrats have some leverage, despite being in the minority. In order to meet the Friday night deadline to avoid a shutdown, Republicans will need all 100 senators to agree to speed up the process. Republicans also need at least eight Democrats to overcome a filibuster and advance the CR.

We’ll see today if Democrats’ strategy holds. Senate Minority Leader Chuck Schumer has pushed for the April 11 CR, but hasn’t officially weighed in. Senate Majority Leader John Thune told reporters he did not believe Senate Democrats had made an offer, though he said “we’re open” to conversations about amendments.

But the Democrats’ gambit will likely do little except stave off the decision they have long dreaded: shut down the government to stand up to President Donald Trump and Elon Musk’s spending cuts or stand aside and leave their unilateral government reductions unchecked.

Republicans have one Democratic “yes” vote: Sen. John Fetterman. In the “no” column: Sens. John Hickenlooper, Mark Warner, Jeff Merkley, Chris Coons, Adam Schiff, Tim Kaine and Peter Welch. But keep an eye out for which Democratic senators will vote to proceed to consideration of the bill — where Republicans actually need Democratic support to get the necessary 60 votes — even if they won’t vote for passage — which only requires a simple majority.

Who we’re watching: Swing-state Sens. Mark Kelly, Elissa Slotkin, Ruben Gallego and Gary Peters. Kelly said Wednesday evening he was undecided on the procedural vote to advance the CR. Slotkin referred reporters back to her Sunday show comments, where she said she would “withhold” her vote until she got certain assurances about government cuts.

House Democrats have only added to the pressure on their Senate colleagues, after they voted almost unanimously against the funding bill Tuesday. During their annual issues conference on Wednesday, their message to Senate Democrats was clear: vote “no” on the continuing resolution.

“We’re standing on the side of working families,” Democratic Whip Katherine Clark said. “And that’s why our message to the Senate is: Also stand with us on that side.”

What else we’re watching:

  • Trump-senators budget meeting: House and Senate Republicans have yet to reach a deal on a budget plan that would set the framework for Trump’s legislative agenda — a source of tension ahead of a meeting today between GOP senators and Trump at the White House. That will include discussions on taxes and the current policy baseline issue — a budgetary loophole that the GOP is trying to use to argue that extending the Trump 2017 tax cuts costs nothing.
  • Senate Dems’ map issues: Democrats’ already difficult 2026 Senate map grew tougher Wednesday when New Hampshire Sen. Jeanne Shaheen said she wouldn’t seek reelection, leaving Schumer and his party to defend a third open seat in a blue-leaning swing state. And more departures could come, with Sen. Michael Bennet eyeing a run for governor and Sen. Dick Durbin on retirement watch. Durbin acknowledged to Lisa that the Senate map is “challenging,” but declined to share his own reelection plans.
  • Governors speak: Democrats start the second day of their issues conference today. Govs. Gretchen Whitmer, Josh Shapiro and Andy Beshear will speak to House Democrats at a closed-door event at their issues retreat at 7:30 p.m.

Jordain Carney, Meredith Lee Hill, Benjamin Guggenheim, Ally Mutnick and Nicholas Wu contributed to this report.

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Congress

VA secretary to testify after House threatens to penalize him

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Veterans Affairs Secretary Doug Collins will testify before House appropriators next week after lawmakers voted to withhold funding for the agency if he didn’t, according to two people familiar with the hearing that has yet to be officially announced.

“They were just being ornery,” Rep. John Carter (R-Texas), who chairs the VA appropriations subcommittee, said of the Trump administration in an interview Thursday afternoon.

The House plans to vote Friday to pass the annual bill that funds Collins’ department. Within that measure, lawmakers included a provision to withhold 25 percent of the department’s operating budget until Collins testifies before both chambers.

The secretary already appeared before Senate appropriators last month.

A spokesperson for the VA did not immediately respond to a request for comment.

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White House, Senate skeptical about House’s amended housing bill

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The White House on Thursday warned that the House’s amended bipartisan housing bill lawmakers plan to vote on next week may contain “serious policy concerns or implementation challenges.”

“The bill is under review. New provisions were added before the administration had a chance to review or provide technical assistance,” a White House official said in a statement to Blue Light News.

The House’s bill, released late Wednesday, is an amended version of the Senate-passed housing affordability legislation that received 89 votes in the upper chamber in March and earned the endorsement of the White House. Both bills broadly aim to increase housing supply and homeownership and have become a key policy goal for both parties going into a midterm election season dominated by affordability concerns.

Senate Majority Leader John Thune said Thursday that the clearest path to getting legislation to the president’s desk is for the House to pass the Senate’s bill. He said the Senate language “was carefully constructed to get at what the president wanted to address.”

“We’ve done what we can do — it’s in the court of the House,” Thune said to reporters.

Senate Banking Chair Tim Scott and ranking member Elizabeth Warren, architects of the Senate-passed package, on Thursday continued to urge the House to vote on the legislation as-is.

“The president of the United States has said he supports the Senate bill,” the Massachusetts Democrat told reporters. “We could make this law and go forward. Enough delay, let’s get this bill on through.”

“As Chairman Scott has said many times, it is time for the House to support President Trump and pass the 21st Century Road to Housing Act unamended,” said Jeff Naft, a spokesperson for the South Carolina Republican.

The lower-chamber’s version of the housing bill is expected to receive enough bipartisan support in the House to pass next week under an expedited process, addresses industry concerns and still keeps the Senate’s version “intact,” a GOP House Financial Services Committee aide said during a call with reporters Thursday.

House Financial Services Chair French Hill (R-Ark.) and ranking member Maxine Waters reached an agreement on changes, according to both the aide and Herline Mathieu, a spokesperson for the California Democrat.

There were concerns that the Senate’s language limiting so-called institutional investors in the housing market could curtail investment in the housing industry. Lawmakers on both sides of the aisle were especially concerned with a provision that would require single-family homes built as long-term rentals be sold to individual homebuyers within seven years.

Hill said the House bill addresses concerns from hundreds of lawmakers and stakeholders.

“This bipartisan amendment reflects that feedback,” the Arkansas Republican said in a statement Thursday. “It cuts unnecessary barriers to new home construction, modernizes [Housing and Urban Development] programs, and allows banks to more freely deploy funding into their communities. We must get this right – and I am committed to working hard to do that.”

Jordain Carney and Jasper Goodman contributed to this report.

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Ways and Means Chief says he’s focused on bipartisanship

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House Ways and Means Committee Chair Jason Smith: Mr. Bipartisanship?

Speaking at a conference Thursday sponsored by the Tax Council Policy Institute, the reliably partisan tax chieftain struck a conciliatory tone in saying he wants to spend the rest of this year working with Democrats on a number of issues.

The Missouri Republican had kind words to say about his panel’s ranking Democrat Rep. Richard Neal (“effective”), Alabama Democratic tax writer Terri Sewell (“a jewel”) and especially Sen. Ron Wyden (Ore.), the top Democrat on the Finance committee.

“We’re not from the same cloth, but I love Senator Wyden — I really do,” said Smith, adding they’re supposed to have lunch next Monday. “He’s a good, good man.”

Smith had little to say about the third reconciliation package House Republicans hope to put together and, at one point, called it “reconciliation 10.0 or whatever.”

He emphasized instead areas where he said he could work with Democrats.

“We can do things on health care, trade and tax from a bipartisan perspective, and I intend to do that in the next few months,” he told conference attendees.

“Everything that we move forward on Ways and Means needs to be bipartisan, because I want to legislate,” Smith continued. “I don’t want to just like pass things just to pass things. I want them to become law.”

It’s a notable shift for Smith, who was one of the architects behind Republicans’ hyperpartisan tax cuts pushed into law last year, and comes even as his House colleagues still hope to pass yet another party-line reconciliation bill later this summer, in addition to the one now pending in the Senate that’s focused on funding immigration enforcement.

Smith noted that he had just arrived from a closed-door meeting with Democratic tax writers to discuss cryptocurrency tax issues. He’s spent months working on a still-unreleased plan to revise the tax code to account for the rise of digital assets, though he’s said he won’t move it without support from Democrats.

Smith has also been pushing to move a package of uncontroversial measures aimed at improving tax administration.

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