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Capitol agenda: Thune stares down ‘Medicaid moderates’

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It’s megabill crunch time in the Senate.

Arm-twisting over what to change in the House-passed version of the “big, beautiful” bill will largely play out behind closed doors the next few days. Strategy huddles include Senate Finance’s meeting tonight and Wednesday’s “Big Six” confab between Senate Majority Leader John Thune, Speaker Mike Johnson, their tax committee chairs and lead administration officials.

One of Thune’s biggest challenges to pass the bill by July 4 will be winning over the “Medicaid moderates” — an ideological cross-section of members who are aligned against the cuts passed by the House and have the numbers to force changes. Among them: Sens. Josh Hawley of Missouri, Lisa Murkowski of Alaska and Susan Collins of Maine. Thune can only lose three GOP senators to pass the megabill.

Thune and Senate Finance Chair Mike Crapo (Idaho), who is juggling Medicaid and tax conflicts in the bill, are talking to key members in anticipation of difficult negotiations. Crapo told Jordain he personally supports the House’s Medicaid work requirements, which some GOP senators wary of benefit cuts say they could also support. But beyond that, they’re steering clear of public commitments.

One potentially major sticking point: The House-passed freeze on provider taxes, which most states use to help finance their share of Medicaid costs. Sen. Jim Justice, the former West Virginia governor, called it a “real issue” and Hawley has also raised concerns. But other GOP senators, including Kevin Cramer (N.D.), want to go even further in reducing, not just freezing, the provider tax.

Republicans got a glimpse of the political minefield surrounding Medicaid while back home last week. Iowa Sen. Joni Ernst’s “we’re all going to die” response to town hall pushback about the cuts — and her decision to double down on the comments — generated days of negative headlines and ad fodder for Democrats.

Mehmet Oz, the head of the Centers for Medicare and Medicaid Services, told POLITICO’s Dasha Burns in the debut episode of her podcast “The Conversation” that the Medicaid work requirements in the bill would “future proof” the program.

Then there are the deficit hawks. President Donald Trump over the weekend warned Sen. Rand Paul (Ky.) to get behind the megabill, with Paul vowing to vote against it over an included debt-limit hike.

But it’s not just Paul making noise. Sen. Ron Johnson (Wis.) is calling for a line-by-line budget review to find places to slash more spending, and Sens. Mike Lee (Utah) and Rick Scott (Fla.) are also pushing for more cuts.

Paul hinted at hard-liners’ leverage Sunday on CBS’ “Face the Nation,” saying: “I would be very surprised if the bill at least is not modified in a good direction.”

What else we’re watching:

— Senate Dems make a move: Senate Democrats are preparing to challenge parts of the GOP megabill with the parliamentarian, Minority Leader Chuck Schumer wrote in a “Dear Colleague” letter Sunday. He highlighted a specific House provision that critics say would weaken judges’ power to enforce contempt orders.

— Trump’s budget request faces first tests: The House Appropriations Committee will begin marking up the Military Construction and Veterans Affairs and Agriculture portion of Trump’s fiscal 2026 budget request this Thursday. Trump’s request includes 22 percent cuts in non-defense spending and sweeping cuts that Democrats don’t appear interested in supporting (and their votes will be critical in September to avoid a government shutdown).

— Hitting Blue Light News: Trump administration officials will testify this week in defense of the president’s fiscal 2026 budget. That includes Education Secretary Linda McMahon on Tuesday, Acting FAA administrator Chris Rocheleau on Wednesday and Commerce Secretary Howard Lutnick on Wednesday and Thursday.

Jordain Carney and Jennifer Scholtes contributed to this report.

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Comer threatens the Clintons with contempt for refusing to be deposed in Epstein probe

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House Oversight Committee Chair James Comer has threatened to pursue contempt charges against former President Bill Clinton and former Secretary of State Hillary Clinton if they do not sit for depositions in Congress’ probe of the Jeffrey Epstein investigation.

His warning Friday came after the committee released new photos from the estate of the late convicted sex offender, including a signed photo depicting the former president smiling alongside Epstein and Ghislaine Maxwell, who is serving 20 years in prison for her role in his child sex trafficking operation.

Comer excoriated the Clintons in a statement for apparently refusing to participate in the investigation. The House Oversight Committee subpoenaed the Clintons in August, and has requested they sit for depositions next week.

“It has been more than four months since Bill and Hillary Clinton were subpoenaed to sit for depositions related to our investigation into Jeffrey Epstein and Ghislaine Maxwell’s horrific crimes. Throughout that time, the former President and former Secretary of State have delayed, obstructed, and largely ignored the Committee staff’s efforts to schedule their testimony,” Comer said.

He said the House Oversight Committee will seek to hold both Clintons in contempt of Congress if they do not appear for depositions or reschedule in the coming weeks. Comer scheduled Bill Clinton’s deposition for Wednesday and Hillary Clinton’s deposition for Thursday.

“If the Clintons fail to appear for their depositions next week or schedule a date for early January, the Oversight Committee will begin contempt of Congress proceedings to hold them accountable,” said the statement.

Bill Clinton’s ties to Epstein have been publicly known for years. His association included traveling on Epstein’s private plane after he left office. A spokesperson for the former president has said he cut off ties with Epstein prior to his 2019 arrest and was unaware of Epstein’s alleged crimes.

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House GOP leaders race to release health care package Friday

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House Republican leaders are rushing to release a new health care package Friday, but a morning meeting with members of key GOP faction led unsettled whether to allow a floor vote on extending expiring Obamacare tax credits.

Speaker Mike Johnson and other members of his leadership team want to file text of the health care legislation as soon as possible in order to comply with House notice requirements and prepare it to be take up by the House Rules Committee early next week. But the matter has been held up as they negotiate with conservative hard-liners who are wary of teeing up a vote to extend the expiring insurance subsidies.

“This is going to be a great piece of legislation that everyone will be united around,” Johnson told reporters after the meeting.

The core package is expected to include an expansion of health savings accounts and association health plans, as well as funding for cost-sharing reductions that help low-income Obamacare enrollees afford their plans. But moderate House Republicans want an amendment vote to add what is likely to be a two-year extension of the enhanced tax credits that were enacted by Democrats during the Covid pandemic and are set to expire on Dec. 31.

GOP leaders had been planning to let the subsidies expire, but they are now inclined to allow a floor amendment on an extension, according to four people granted anonymity to describe the closed-door Friday morning meeting with Johnson and a swath of senior Republicans.

Conservatives, including Budget Chair Jodey Arrington (R-Texas), have strongly objected to any attempt to continue the tax credits.

“I pity the Republican that has to explain why they would propagate or perpetuate, I should say, a fraud-ridden subsidy from the Covid era to prop up a failed health care program,” Arrington said Friday, saying it would make Republicans “complicit in propping up the very driver” of rising health care costs.

But he suggested a vote on an extension would happen regardless: “I expect people are going to have an opportunity to vote their conscience and then go defend their votes back home like we always do.”

House Majority Leader Steve Scalise said the topic was “heavily discussed” in the meeting, which another senior House Republican described as “lively.” Leaving the session, Scalise said leaders would be “making final decisions shortly, because we have to file text later today.”

Benjamin Guggenheim and Nicholas Wu contributed to this report.

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Trump, Clinton, Gates included in Epstein photo trove

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Photos from the estate of Jeffrey Epstein tie the late, convicted sex offender to President Donald Trump, former President Bill Clinton, tech billionaire Bill Gates and former Treasury Secretary Larry Summers.

These men and others are featured in the roughly 95,000 photos the House Oversight and Government Reform Committee has received from the Epstein estate as part of its ongoing investigation. House Democrats publicly released select 19 photos Friday morning.

“It is time to end this White House cover-up and bring justice to the survivors of Jeffrey Epstein and his powerful friends,” said the Oversight Committee’s top Democrat, Rep. Robert Garcia of California, in a statement. “These disturbing photos raise even more questions about Epstein and his relationships with some of the most powerful men in the world. We will not rest until the American people get the truth. The Department of Justice must release all the files, NOW.”

The White House and other individuals in the photographs beyond Trump did not immediately respond to requests for comment.

The Justice Department is required to release the full tranche of Epstein-related documents by Dec. 19, per the terms of legislation Congress passed last month.

Of the photos shared Friday, one features Trump alongside someone who appears to be a young woman (her face has been redacted). Another shows Trump standing beside Epstein, chatting with a woman, while a third has Trump grinning among a half dozen women whose faces have also been redacted. In that shot, he appears to have his arm around one women’s waist.

There is another photo in the tranche showing pictures of “Trump condoms” being sold for $4.50 each, branded with the words, “I’M HUUUUGE!”

There is a signed photo from Clinton depicting him smiling alongside Epstein and Epstein’s associate Ghislaine Maxwell, who is serving 20 years for her part in the sex trafficking scheme.

The images underscore Epstein’s long and storied network of connections to powerful men across industries, from filmmaker Woody Allen to conservative strategist Steve Bannon. They were sent to Capitol Hill after a subpoena from the Oversight panel for materials from the late financier’s estate, separate from the documents demanded from the Justice Department by legislation.

While Epstein’s connections with these public figures are far from new revelations, they highlight the extent to which Epstein reveled in his relationships with powerful people.

Gates, the Microsoft founder, is seen smiling at Andrew Mountbatten-Windsor, formerly known as Prince Andrew, in one photo and grinning beside a pilot in front of a plane in another. That photo has been published previously.

Summers, the former Treasury Secretary and president of Harvard University, is the latest public figure to face fallout from his relationship with Epstein. In wake of new materials produced in response to the congressional investigation, Summers was banned from the American Economic Association and stepped back from his roles at Harvard.

Summers is seen in one photo on what appears to be a small plane.

Bannon, who served as Trump’s chief strategist during his first term, is seen in the photos talking with Epstein at a desk and standing beside Epstein in front of a mirror, posing for a selfie. In another, Bannon appears to be speaking with Allen.

Trump has maintained that he ended his relationship with Epstein years ago and called the efforts clamoring for the release of the files a “hoax.” In a pivot last month, he gave congressional Republicans his nod of approval to vote to release the Epstein files and swiftly signed the legislation into law.

Those files are due in the coming days, after courts cleared the way for the Justice Department to release grand jury materials and the 30-day clock for Attorney General Pam Bondi to make the contents public is winding down. A Justice Department spokesperson did not immediately respond to a request for comment.

Clinton, meanwhile, has been subpoenaed by the Oversight panel, but a date has not yet been scheduled for his testimony to Congressional investigators. Trump has ordered Bondi to investigate Democrats with ties to Epstein, including Clinton and Summers. Bondi asked Jay Clayton, U.S. attorney in the Southern District of New York, to lead the charge.

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