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Capitol agenda: Where health care talks stand

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The Senate’s leaving Thursday for Thanksgiving recess without clear bipartisan agreement on how to address expiring Obamacare subsidies. But after a busy week of talks across the Capitol, we’re starting to get some clarity on what will or won’t pass muster in a year-end health care deal.

Here’s what we’ve learned:

— Sen. Bill Cassidy’s (R-La.) plan to redirect funds into health savings accounts isn’t going to fly with Democrats. Senate Minority Leader Chuck Schumer told reporters Wednesday his party only wants an extension of the Affordable Care Act credits that expire next month, and that “Cassidy’s proposal, as I understand it, replaces them.”

“It’s privatizing health insurance, and it looks like it’s really problematic,” Schumer said.

Health experts say Cassidy’s plan, which aligns with a proposal floated by President Donald Trump, also won’t necessarily do much to offset looming premium spikes. Those talking points could bolster Democrats’ opposition as they argue for a clean extension of the subsidies.

— More Republicans are acknowledging it might be too late to enact major new health care policy before Dec. 31.

“It’s a welcome discussion,” Rep. Don Bacon (R-Neb.) told Blue Light News. “But we’re not gonna get that done by Dec. 31.”

When asked about the timeline on Wednesday, Sen. Lisa Murkowski (R-Alaska) said there’s not enough time to make “major changes.”

That could give a boost to Democrats who were promised a standalone vote on an ACA extension bill next month in exchange for reopening the government.

But it could also embolden conservatives who are eager to ditch bipartisan talks and go their own way on a health care-focused, party-line reconciliation package, as White House deputy chief of staff James Blair teased Tuesday.

Senate Budget Chair Lindsey Graham (R-S.C.) said Wednesday he plans to pursue a new budget reconciliation bill. However such a move would likely have to happen next year if at all.

— There’s one area of bipartisan promise on health care. Senate Finance Chair Mike Crapo (R-Idaho) and ranking member Ron Wyden (D-Ore.) say they’ll soon unveil a proposal to crack down on the health intermediaries known as pharmacy benefit managers — a longtime priority for the panel.

Wyden told Blue Light News he’s hopeful the Senate will advance a bill by the end of the year. When he chaired Senate Finance in 2023, the committee approved a PBM bill in a 26-0 vote.

Committee Republicans are eager for the bill to hitch a ride on a must-pass legislative vehicle. One Senate aide involved in the negotiations tells Blue Light News the package is likely to be in the mix in January as Congress approaches the next government funding deadline.

Sen. Steve Daines (R-Mont.) told reporters Wednesday there could be a “window” to put it on the floor as a standalone measure.

What else we’re watching:   

More censures?: Look out for whether there’s a move to censure Rep. Sheila Cherfilus-McCormick (D-Fla.) after she was indicted on federal fraud charges Wednesday. This week has been heavy on censure efforts in the House, with Rep. Chuy García (D-Ill.) formally rebuked Tuesday and derailed attempts against Democratic Del. Stacey Plaskett of the Virgin Islands and GOP Rep. Cory Mills of Florida.

— Next steps on permitting talks: Key negotiators regard Thursday morning’s House Natural Resources Committee markup as an important step in reaching a comprehensive permitting reform deal this Congress. Chair Bruce Westerman’s (R-Ark.) bill would ease permitting reviews and limit legal challenges for projects under the National Environmental Policy Act, a bedrock environmental protection law many conservatives believe is mired in too much red tape.

— NDAA down to the wire: The “Big Four” leaders of House and Senate Armed Services are racing to reach a compromise defense bill just a week before their self-imposed deadline. The lawmakers are hoping to drop the bill text the day they return from Thanksgiving break and are targeting an early December vote on the House and Senate floors.

Robert King, Calen Razor, Jordain Carney, Meredith Lee Hill, Josh Siegel and Connor O’Brien contributed to this report.

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Congress

Cherfilus-McCormick resigns amid ethics investigation

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Rep. Sheila Cherfilus-McCormick (D-Fla.) has resigned in the face of corruption charges at home and calls for her ouster in Washington, she announced in a statement on Tuesday.

News broke minutes before the House Ethics Committee was about to meet for a public hearing Tuesday afternoon to determine a punishment for the third-term Democrat, who was charged with stealing $5 million in Covid relief funds.

Cherfilus-McCormick said in a statement the Ethics proceedings did not constitute a “fair process” and that she was “choos[ing] to step aside” rather than “play these political games.”

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Rick Scott holds up Coast Guard promotions

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Florida Sen. Rick Scott is blocking quick confirmation of hundreds of Coast Guard promotions as he tries to resolve a dispute involving a shipbuilder in his home state.

The Republican said in an interview Tuesday that he has placed a hold on the Coast Guard promotions, which prevents the Senate from easily clearing them unanimously and would force Majority Leader John Thune to set up time-consuming roll call votes on promotions that are usually agreed to with little fanfare.

“I’ve been talking … since Trump came into office about trying to resolve an issue they have with a boat builder in Florida. And they … won’t put the time in to get a result,” Scott said.

“I’ve met with everybody that I can meet with, and I want them to focus,” Scott said of the Coast Guard, adding that he wasn’t trying to dictate the outcome to the administration but emphasizing “you have to get this resolved.”

Scott didn’t specify which shipbuilder he was referring to. But Scott has been a longtime booster of a Coast Guard contract with Panama City-based Eastern Shipbuilding Group to deliver four new advanced cutters. A person granted anonymity because they were not authorized to speak publicly about the matter said the hold is related to the company.

Then-Homeland Security Secretary Kristi Noem scrapped plans for two of the boats last year, and ESG announced in November it would stop work on the two remaining boats “due to significant financial strain caused by the program’s structure and conditions.”

The tussle over the nominations comes as Thune is trying to quickly assemble and approve a new personnel package, telling reporters Monday night that confirming another tranche of President Donald Trump’s nominees is a priority alongside resolving the DHS shutdown and renewing soon-to-lapse surveillance powers.

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Johnson touts ‘bipartisan’ path for FISA reauthorization, but obstacles remain

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Speaker Mike Johnson is raising the possibility of a “bipartisan” path forward on extending a key spy authority after negotiations among House Republicans blew up late last week.

“We’re confident that we’ll be able to find strong bipartisan consensus that builds off of the really meaningful reforms that we included in the legislation the last time we reauthorized it,” Johnson said during a news conference Tuesday morning.

The emergency short-term reauthorization Congress cleared last week expires April 30, putting pressure on lawmakers to reach a deal quickly.

Among the options GOP leaders are discussing: If the Senate can advance a three-year extension of Section 702 of the Foreign Intelligence Surveillance Act, with policy changes, the House could then pass it with a majority of Republicans and some Democrats, according to three people granted anonymity to share direct knowledge of ongoing conversations.

It’s also possible Johnson could put that measure on the House floor under an expedited procedure that does not require prior adoption of a party-line rule, but would need a two-thirds majority voting in the affirmative to secure passage. House GOP leaders still need to appease hard-liners who have very specific demands for new guardrails on warrentless surveillance practices as part of any reauthorization measure.

House Democratic leaders, meanwhile, aren’t promising cooperation — and they’re skeptical Johnson is as close to a deal as he might suggest.

“His confidence meter was always pretty high, and then he put a bill on the floor that had zero consensus among his caucus, and looked like the disaster that it was after midnight,” House Democratic Caucus Chair Pete Aguilar of California told reporters Tuesday.

He added that he has not had “any discussions” yet with Republican counterparts on next steps for Section 702, and “absent those conversations, it’s going to be hard to find bipartisan consensus.” Aguilar also said that Democrats would follow the leads of House Intelligence Chair Jim Himes of Connecticut and Jamie Raskin of Maryland.

Johnson is planning to meet Reps. Brian Fitzpatrick of Pennsylvania and Darin LaHood of Illinois later Tuesday as the pair of Republicans works with Democrats on a bipartisan FISA extension plan, according to two people granted anonymity to share private scheduling.

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