Congress
Clock resets on Obamacare talks as Congress fails to act on subsidies
Hopes for a quick patch saving millions of Americans from sharply higher health insurance premiums have given way to expectations of a long slog on Capitol Hill.
It is now all but certain that enhanced Obamacare subsidies first implemented by Democrats as a Covid relief measure will expire Dec. 31 after the Senate voted down competing partisan health plans Thursday and House GOP leaders indicated they had no plans to bring an extension up for a vote this year.
Less certain is when lawmakers might begin to pick up the pieces — or if they have any hope of finding a solution. A bipartisan group of lawmakers continues to talk about a possible 11th-hour path forward, hoping that the failed votes this week can give them some badly needed momentum. But most of their colleagues are convinced the discussions won’t bear fruit until 2026.
A major obstacle is that leaders in both parties are, at least so far, prioritizing plans that don’t bridge existing political gaps. Top Republicans are putting forward proposals that would not extend the expiring Affordable Care Act subsidies, while Democrats are sticking to proposals that most in the GOP say they cannot accept.
“We don’t have a lot of time,” said Sen. Lisa Murkowski, an Alaska Republican who voted for both parties’ proposals Thursday. She said she was “talking to people of good will and good faith about how we might be able to sketch” out a compromise.
But Murkowski also said in a subsequent statement that Congress needs to reach an agreement by Jan. 15 — a concession talks are likely to slip into next year.
Sen. Mike Rounds (R-S.D.), who has been involved in loose bipartisan health care discussions for months, said he hoped the failed votes would lead negotiators to “bridge the impasses.” But asked if there was any way to prevent the subsidies from lapsing, he said, “I honestly don’t know.”
The stakes for American families are considerable. Independent analysts say those who purchase insurance directly from the ACA exchanges could see their premiums spike by an average of about $1,000 a year. For some, it could be considerably more. The political stakes are also vast, with many moderate Republicans fretting that a lapse would threaten their reelection campaigns and endanger the GOP’s congressional majorities.
That sense of panic has not trickled up to Republican leaders, who appear ready to send lawmakers home next week until Jan. 6. By that time, the enhanced subsidies will have lapsed — returning the tax credits to prepandemic levels that assist a much narrower swath of Americans. The Congressional Budget Office has estimated millions of Americans will go without insurance as people drop their plans to avoid having to pay higher premiums.
Senate Majority Leader John Thune left the door open Thursday to an 11th-hour deal but also acknowledged the obvious: They don’t have a lot of time.
“We’ll see where the discussions go,” Thune told reporters after the failed votes. “I think we’ll get a sense for that here pretty soon.”
Speaker Mike Johnson, meanwhile, is plowing forward with a plan to hold a vote next week on a House GOP-authored health care framework that, according to three people granted anonymity to describe internal discussions, will not include a subsidy extension. Instead it is likely to mirror aspects of the Senate proposal that mostly united Republicans Thursday but failed to leapfrog the chamber’s 60-vote legislative threshold.
Yet to weigh in is President Donald Trump. While he voiced support this week for giving federal money “to people,” not insurance companies, he also has avoided taking a firm stance for or against an extension of the subsidies.
The White House appears to be tacitly on board with Johnson’s decision not to pursue an extension, with administration officials believing that path unifies the GOP.
“The idea is to put together a package before Christmas that has unity with 218 Republican votes in the House,” said a person familiar with health care discussions on Blue Light News and in the White House who was granted anonymity to discuss them.
“The biggest threat these days is the discharge petition,” the person said, adding that the only way to avoid it is to “put together a consensus plan” among House Republicans.
It was a reference to ongoing bipartisan effort to circumvent leadership and force floor votes on legislation that would temporarily extend the expiring Obamacare subsidies while imposing new eligibility requirements. Two such petitions have been filed and received Republican sign-ons in recent days.
Neither petition has yet to garner the sweeping support from Democrats needed to succeed, however. Instead, Democratic leaders are pushing to discharge a bill that would simply extend the current subsidy framework for three years — to the doorstep of the next presidential election.
“Every single House Democrat is supportive of a straightforward extension of the Affordable Care Act tax credits,” House Minority Leader Hakeem Jeffries told reporters Thursday. “All we need are four Republicans to join us.”
With nothing likely to make it to Trump’s desk by the end of the year, lawmakers are increasingly turning their attention to January. Many view the Jan. 30 government shutdown deadline as the real cutoff for a bipartisan health care deal.
Some conservative Republicans are pushing their party to simply pursue a partisan health care bill under the budget reconciliation process, which can skirt the Senate’s 60-vote supermajority requirement. They argue that Democrats are not actually interested in compromising and instead want to run their midterm campaigns on the expired subsidies.
“I know there are some on my side who say 60-vote bills stand the test of time, yadda yadda yadda,” Sen. John Kennedy (R-La.) said. “There are not going to be 60 votes. The Democrats think this is a great political issue for them.”
But others are talking about paths to compromise, even as bipartisan negotiations have struggled to gain traction over months of attempts before, during and after the 43-day government shutdown where Democrats made extending the subsidies the centerpiece of their demands.
One idea already floating around the Senate Thursday was to merge the GOP plan, which expands health savings accounts, with an extension of the subsidies accompanied by the kinds of restrictions contemplated in the House bills subject to discharge petitions. Thune said he is being kept in the loop on the bipartisan and bicameral conversations about how to quickly come up with a deal before the holidays.
Few, however, thought that approach could come together that quickly.
“It would be great if we could get it done next week, but realistically I think we’ve got to look at it as next week but also January,” said Sen. John Hoeven (R-N.D.).
Among Republicans, the pressure posed by the subsidy cliff is rivaled by the anxiety they are feeling about the approaching midterms. GOP lawmakers in both chambers are warning that they are handing Democrats’ a political cudgel to use against them next year if the tax credits expire.
Democrats will pick “sympathetic cases” to use against Republicans, retiring Sen. Thom Tillis (R-N.C.) predicted, “and there will be plenty of them.” Sen. Jim Justice (R-W.Va.) added that if Republicans are not concerned about the midterm implications, “then you’re living in a cave.”
But Senate Minority Leader Chuck Schumer warned it might already be too late.
“The toothpaste is out of the tube,” he said Thursday. “Once Jan. 1 comes and everyone is locked into their insurance proposals, you can’t put the toothpaste back in the tube.”
Megan Messerly and Nicholas Wu contributed to this report.
Congress
Capitol agenda: Nervous GOP waits for Trump’s Texas pick
Senate Republicans are holding their breath ahead of President Donald Trump’s critical choice in Texas: an establishment GOP candidate vs. a MAGA firebrand.
The president announced Wednesday his incoming endorsement in the Texas GOP Senate runoff between Sen. John Cornyn and state Attorney General Ken Paxton. Senate leaders have urged the president to throw his support behind Cornyn to avoid a grueling 12-week showdown that could burn $100 million or more in GOP donor money.
There’s hope from some of Cornyn’s allies, who believe things are aligning in the incumbent’s favor, as he appears on track to win a plurality in Tuesday’s voting.
A swift endorsement would also let Senate Republicans pivot their resources toward holding onto seats that Democrats are targeting. That could now include Montana, after GOP Sen. Steve Daines announced Wednesday night that he would not seek reelection.
“I hope it’s going to be soon,” Senate Majority Leader John Thune told reporters Wednesday about an official Trump nod, hours after making his latest plea on Cornyn’s behalf to the president.
He’s not alone. Multiple other Republicans have pressed the president to back Cornyn ever since he advanced to the primary runoff Tuesday, according to three people granted anonymity to describe private conversations.
They warned Trump that if scandal-plagued Paxton becomes the nominee, it could cost Republicans a seat they have held since 1961. There’s even more GOP anxiety now that state Rep. James Talarico secured the Democratic nomination — a candidate many believe could give Democrats their best chance at flipping the seat.
“There’s nothing more powerful than President Trump’s endorsement,” Sen. Katie Britt (R-Ala.) said in an interview for Blue Light News’s “The Conversation” Wednesday. Britt said Cornyn is “without a doubt the candidate to win in November.”
However, anxious Republicans are acutely aware that the president has always been fond of Paxton, a MAGA firebrand who eagerly joined Trump’s effort to overturn Joe Biden’s 2020 win.
“We need to hold that seat which means we need to nominate someone who is going to win in November,” Senate Majority Whip John Barrasso told Blue Light News. “The person that will win in November is John Cornyn.”
What else we’re watching:
— War powers resolution vote: House Republican leaders are confident a bipartisan Iran war powers resolution will fail Thursday, after the Senate on Wednesday rejected an attempt to rein in Trump’s authority to pursue the war. GOP Reps. Thomas Massie of Kentucky and Warren Davidson of Ohio are bound to break ranks with their party to support the effort. But a small group of Democrats are expected to oppose the resolution.
— Kids online safety markup: The House Energy and Commerce Committee will debate Thursday over the latest GOP proposal to set national standards for kids’ online safety as Democrats warn it weakens state protections. Expect a partisan clash over how far Congress should go in regulating tech companies and preempting state laws.
Jordain Carney, Alex Gangitano, Liz Crampton, Calen Razor, Ruth Reader, Alfred Ng and Gabby Miller contributed to this report.
Congress
Tony Gonzales admits sexual relationship with former staff member who killed herself
Texas Rep. Tony Gonzales has admitted for the first time that he had a sexual relationship with his former staff member who killed herself last year.
Gonzales, who faces a May runoff in the Republican primary to hold his seat, insisted in a radio interview that he is not responsible for her death.
“I made a mistake, and I had a lapse in judgment, and there was a lack of faith, and I take full responsibility for those actions,” Gonzales told radio host Joe Pagliarulo.
Gonzales, who is married, made the comments hours after congressional investigators recommended the House Ethics committee probe the lawmaker for the relationship, which would be a violation of House rules. The Texas lawmaker said he plans to cooperate with the committee’s investigation.
The acknowledgment comes a day after Gonzales was forced into a runoff election in his west Texas congressional seat against Brandon Herrera, a media personality who owns a gun business and calls himself “the AK Guy.”
Several of his Republican colleagues have called for Gonzales to step down after new details about the relationship came to light in the weeks before Tuesday’s election. Gonzales had previously denied the affair and refused to resign.
Gonzales is alleged to have tried to coerce Regina Santos-Aviles into sending explicit photos, according to text messages published by the San Antonio Express-News and other publications. Blue Light News has not independently reviewed the messages.
An attorney for Gonzales declined to comment.
In the interview, Gonzales spoke about Santos-Aviles’ time working in his office before her death, which he said came as “a shock to everyone.” She died by suicide after setting herself on fire at her home in 2025 – about a year after the exchange of messages with the lawmaker.
“Some of the reports are saying that she was not thriving at work. It’s exact opposite. She was thriving at work,” he said.
Gonzales said that Santos-Aviles’ suicide had “absolutely nothing to do with” their relationship.
Congress
‘We’re in it’: Democrats won’t rule out giving Trump more money for Middle East war
Some Democrats aren’t ruling out voting for a multibillion-dollar military infusion, setting up a potential internal clash in the weeks ahead for a party whose political base is aghast at President Donald Trump’s aggression against Iran.
The Trump administration’s top defense and intelligence officials told lawmakers this week that the Pentagon could soon send an emergency supplemental funding request to Capitol Hill. They didn’t offer a timeline or dollar value, but the White House is reportedly mulling a $50 billion ask.
That’s a massive sum on top of the more than $990 billion Congress has shelled out for defense capabilities in recent months between the GOP’s “big, beautiful bill” and the latest government funding package.
To pass any new military funding measure through the Senate, the support of at least seven Democrats will be needed to overcome the filibuster. It’s far from certain the votes are there.
“Good luck. What Democrat is going to vote to fund an illegal war?” Sen. Chris Murphy (D-Conn.) said Wednesday. “I don’t think — with the exception of one Democrat — there will be any votes for it.”
He appeared to be referring to Pennsylvania Sen. John Fetterman, who was the only Democrat to oppose a separate Iran war powers resolution and has routinely broken with his colleagues on government funding votes.
Democrats also want to stay disciplined around their campaign message heading into the midterms, arguing that Trump has abandoned his central campaign promises to keep the country out of prolonged wars and bring down costs for Americans.
“I mean, you lie to us, don’t consult us and then expect us to send more taxpayer money to a war that we shouldn’t have started with no plan and no answers,” said Rep. Pat Ryan (D-N.Y.), a combat veteran of the Iraq War, in an interview. He called reports of the $50 billion request “outrageous.”
But this is not the universal position inside the party. Several Democrats on the Senate Armed Services Committee aren’t ruling out supporting more Pentagon funding. That includes the panel’s top Democrat, Sen. Jack Reed of Rhode Island, as well as Sens. Gary Peters of Michigan, Tim Kaine of Virginia and Elissa Slotkin of Michigan.
A White House emergency funding request could force Democrats to choose between rebuffing the president and turning their backs on legislation the administration deems necessary for replenishing key defensive munition stocks designed to keep U.S. troops and civilians safe.
There’s awareness among many Democrats that Trump has thrust the country into a conflict, and now Congress has no choice but to help keep things on track.
“I need to know the goals and the plan. … I don’t rule anything out,” said Slotkin. “I mean, we’re in it.”
Lawmakers in both parties are also concerned that the bombing campaign and effort to defend U.S. personnel in the Middle East could quickly deplete stockpiles of precision-guided missiles and air defense interceptors that are critical for national security priorities elsewhere around the globe. The Pentagon and defense industry have struggled to speed up production of the expensive munitions, which are in high demand in the Middle East, Ukraine and in the Pacific.
“We have to look at what they need,” said Reed, the ranking member on the Senate Armed Services Committee. “Some of it might be to fill in critical issues and other theaters of war they’ve taken things from.”
There’s a possibility a spending package for the Iran conflict could be tied to other priorities, which could make it more palatable to some Democrats. Lawmakers were talking Wednesday about attaching Ukraine aid. Others are eyeing relief for farmers — a key priority for Republicans in agriculture-heavy states — as well as wildfire disaster aid Democrats have long sought.
“I think it comes down to, you’re going to have to have a number of things in there to get a critical mass,” Sen. John Hoeven (R-N.D.) said Wednesday.
That doesn’t mean all Democrats are prepared to give Trump a blank check for military action in Iran. Many who left the door open to voting for a supplemental funding package said the administration would first have to provide Congress with more information about the offensive. That includes the rationale for striking Iran, a commitment to avoid putting boots on the ground and a plan for ending the conflict.
“Clearly, there’s going to be a cost to this war that we haven’t budgeted for. So there is going to be a need for funding, and we need some answers before we provide it,” Sen. Jeanne Shaheen of New Hampshire, the top Democrat on the Senate Foreign Relations Committee, said in an interview.
Sen. Chris Coons (D-Del.), the top Democrat on the appropriations panel overseeing Pentagon spending, is also keeping open the option of supporting an emergency military funding package but said like Shaheen that administration officials need to testify publicly about “the failures in planning” in the conflict so far.
Republican Sen. Lisa Murkowski of Alaska cautioned Wednesday that Democrats could decide to take a stand on funding — a vote where they have real leverage. That is in contrast to the doomed efforts on Blue Light News this week to put guardrails on the president’s ability to take unilateral military action, which Trump would certainly veto in any case.
“There’s a lot of people who have said, ‘Well, if you want to express your position on the war, the way to do it is … through appropriations,” she said in an interview. “We get that. So the administration should not be taking anything for granted.”
Across the Capitol, California Rep. Pete Aguilar, the No. 3 Democrat in the House and a member of the Defense appropriations funding panel, told reporters Wednesday that he’s “incredibly skeptical” of any emergency military funding request from Trump — but also that he has “a duty and a responsibility to help protect this country.”
At the same time, said Aguilar, “It’s going to be pretty hard to move me off of a ‘no.’”
Mia McCarthy, Jordain Carney, Connor O’Brien and Calen Razor contributed to this report.
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