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
Rubio, Witkoff to brief Congress on Iran
Top deputies of President Donald Trump will brief Congress on the Iran peace talks in a Monday conference call — the first time administration officials have addressed a broad group of lawmakers since Trump signed a “memorandum of understanding” with Tehran earlier this month.
Secretary of State Marco Rubio and Steve Witkoff, Trump’s special envoy to the Middle East, will lead the briefing for all House and Senate members at 4 p.m., according to seven people granted anonymity to discuss the private meeting.
Republicans and Democrats have called for more transparency about the 14-point agreement inked on June 18, which initiated a cease-fire between the two countries. Since then, the U.S. and Iran have continued to engage in hostilities.
Congress
Capitol agenda: Red, white and GOP hard-liner blues
House Republicans finally cleared a runway this week to finish some of their top legislative priorities before the July 4 recess.
That is, unless a small band of hard-liners trip up those plans at takeoff.
Speaker Mike Johnson is hoping to move quickly to pass fiscal 2027 appropriations legislation, the annual defense policy bill and a kids online safety bill that has been years in the making. The movement comes after President Donald Trump instructed GOP hard-liners to stop holding up a procedural vote amid a protest from Rep. Anna Paulina Luna and others that the Senate hadn’t passed Trump’s election security bill.
But Luna and other hard-liners are still threatening to tank the procedural vote that could delay the defense policy bill and other measures until they get concessions on the SAVE America Act, amid other demands.
Johnson, for example, had also promised hard-liners a vote before July 4 on a sweeping GOP immigration bill introduced in the prior Congress as H.R. 2, which is highly unlikely to happen.
Johnson for his part has said the House will “pass the SAVE America Act again” by folding parts of it into a third party-line reconciliation bill. But the slimmed-down version he’d need to pursue in order to meet strict Senate rules for the budget process is already being panned by hard-liners as insufficient.
That reconciliation bill is also already delayed. House Republicans aren’t on track to meet their goal of advancing its framework before the July 4 recess as members on the Budget panel balked over how to pay for the legislation in a closed-door meeting last week.
“Time is of the essence, given how many legislative days we have,” House Energy and Commerce Chair Brett Guthrie, who is sponsoring the kids online safety legislation, said in an interview last week. “If we lose a week, that would be important.”
Meanwhile, Democratic leadership is grappling with their own heated internal divisions this week. Members are split over supporting the adoption of an amendment to a fiscal 2027 spending bill from Rep. Thomas Massie that would end Israel aid and cut the overall foreign military aid program by $3.3 billion.
Appropriations ranking member Rosa DeLauro did not instruct her colleagues on how to vote during a rare Sunday evening caucus call, two sources granted anonymity to discuss the private meeting tell Mia and Riley. Leaders did, however, criticize the amendment as poorly written.
One other item this week that could split members of each party: House lawmakers are also slated to vote on a rewritten war powers resolution from Rep. Rashida Tlaib to reign in Trump administration military actions in Lebanon. Leadership worked with Tlaib to come up with new language last month that is expected to garner more Dem support, but the resolution is still expected to fail without GOP votes.
What else we’re watching:
— SENATE GOP GETS ANTSY ABOUT NOMINATIONS: Some Republican senators are unsettled by Trump’s apparent lack of urgency in filling vacant posts, even as GOP control of the chamber beyond the midterms is increasingly in doubt. There are more than two dozen federal court vacancies. Labor secretary, FDA commissioner and scores of other open positions do not have nominees, and a senior White House official said Trump is in no rush to fill them. “We’re running short on time,” said Sen. Tommy Tuberville, a member of Senate HELP, which oversees health, labor and other issues.
—RICK SCOTT SAYS HE’S JUST TRYING TO HELP: Fresh off his controversial Trump invite to a Senate GOP lunch last week, Sen. Rick Scott told Blue Light News in an interview he’s trying to make a mark — not trying to challenge Senate Majority Leader John Thune. Scott insists that neither his invitation to the president nor a letter he circulated afterward outlining how the Senate GOP should be preparing for the midterms should be seen as a prelude to a leadership challenge. The Florida Republican said he’s perfectly happy running the conference’s conservative Steering Committee and predicted Thune would easily secure another term as leader. What has become eminently clear in recent weeks is that Scott — after a long career in business, two terms as governor and nearly eight years as senator — just isn’t a back-bench kind of guy.
Meredith Lee Hill, Riley Rogerson, Alex Gangitano, Jordain Carney and Cheyenne Haslett contributed to this report.
Congress
Republicans get antsy about confirmations as the Senate hangs in the balance
President Donald Trump is showing little urgency in sending nominations to the Senate even as the GOP’s control of the chamber beyond 2026 is increasingly in doubt.
There are more than two dozen federal court vacancies. Labor secretary, FDA commissioner and scores of other open positions do not have nominees, and a senior White House official said Trump is in no rush to fill them.
“Ultimately, we need to have the right people in those positions,” said the official, who was granted anonymity to describe internal thinking. “So if it’s acting for now, so be it. If [it] takes a little while to find that perfect person, then it takes a little while.”
That’s unsettling some Republican senators who are anxious to fill spots ahead of the midterms, a daunting task given the legislative calendar and host of competing GOP priorities.
“We’re running short on time,” said Sen. Tommy Tuberville (R-Ala.), a member of the Senate HELP Committee, which oversees health, labor and other issues. “We’d love to get at least one or two of them and get it in the next tranche.”
As far as judges, Tuberville said he wants to see “as many as we can get” nominated, adding, “I don’t know why we don’t have more.”
Trump’s apparent nonchalance — particularly over judges — is a marked departure from his first term, when he opined that appointing people to the bench might be the “single most important thing you do” as president. But as the Senate left for a two-week recess Thursday, there were only 10 nominees pending for 29 judicial vacancies.
The vacancies come amid ongoing tensions between the Senate and Trump, who has put pressure on the chamber to pass the GOP elections bill known as the SAVE America Act, going so far as to cancel a planned Wednesday signing of a bipartisan housing bill.
Sen. Ted Cruz (R-Texas), a member of the Judiciary Committee, said he “absolutely” wants to see the president nominate more judges before the end of the year. Texas has three court vacancies with zero nominees.
“And that’s one of his greatest legacies, both first term and second,” Cruz said of Trump.
Trump is on pace with his first term in total confirmations in part because Republicans changed the Senate rules last year to confirm slates of civilian posts at once by a simple majority vote.
One tranche confirmed in Mayincluded 49 nominees, from ambassadors to midlevel posts at various federal agencies. So far, 502 of Trump’s second-term nominees have been confirmed, compared to 509 at this point during his first term and 601 at the same point during former President Joe Biden’s term.
Federal judges and members of the Cabinet still have to be confirmed individually, despite the rule change for other posts.
Trump inherited only about 40 judicial vacancies for his current term, fewer than any president since Ronald Reagan. Judiciary Committee Chair Chuck Grassley (R-Iowa) previously complained that the White House hasn’t nominated more judges. More recently, though, he’s blaming his committee for not acting more quickly on the already pending nominees.
“Right now it’s hard for me to blame the White House when in the last three executive weeks, we were supposed to have meetings to vote judges out, we couldn’t have enough members present,” Grassley said in an interview.
A White House official said “Trump plans to nominate well qualified individuals to fill these vacancies.”
Sen. John Kennedy (R-La.) said he’s had “a couple good discussions” with the White House about a circuit court vacancy, which he expects the administration to fill. As a Judiciary Committee member, he can block any nominee that doesn’t get support from Democrats.
“If it’s somebody I support, I’ll vote for them. If it’s somebody I don’t support, I’ll vote no,” Kennedy said. “It’s an important spot. They know I’m on Judiciary, and they know I’ll vote no if I don’t agree.”
The Labor secretary and FDA commissioner picks, meanwhile, go through the HELP committee — chaired by Sen. Bill Cassidy (R-La.), who lost his primary last month after Trump endorsed a challenger.
Republicans have been left in the dark about those nominees, some on the panel say.
Sen. Roger Marshall (R-Kan.) said he’s heard “nothing at all” and “radio silence” from administration. Another GOP senator, granted anonymity to speak candidly, said they’ve heard nothing from the administration about its thinking or plans for a Labor secretary nominee specifically.
The HELP Committee membership poses challenges for the administration. Sens. Lisa Murkowski (R-Alaska) and Susan Collins (R-Maine) previously expressed concerns about Casey Means’ nomination as surgeon general before Trump pulled her, for example. And the dynamic between the president and the chair could be a hurdle, three people granted anonymity to comment on the process said.
“Why give Cassidy a platform to get back at DJT?” one of them said.
Another, a GOP senator, predicted Cassidy would “play games” with nominees who have to go through his committee.
“I really don’t think a lot of senators are in any mood to give the president any wins because they’re frustrated with him,” said the third person, who is close to the White House.
But confirming nominees before he leaves the Senate could be a priority for Cassidy, one of the few Republican doctors to push the administration toward public health nominees who align with established science on issues like vaccines.
A potential successor — Republican Sen. Rand Paul of Kentucky — is a critic of the vaccine and masking standards set during the pandemic and would likely set the committee on a different path.
Recent appointees such as Nicole Saphier for surgeon general and Erica Schwartz for Centers for Disease Control and Prevention director are more mainstream than some past HHS appointees like Means and Dave Weldon, who was nominated for CDC director before the administration determined he didn’t have the votes.
Those nominees have been moving through the regular process, including meeting with Cassidy and other senators ahead of confirmation hearings.
Cassidy told reporters after he lost his primary that he would “vote for the good of my country and the good of my state.”
“There’s some nominees that have not gotten through committee for whatever reason, so that’s not anything new,” he added. “That’ll just be part of the process.”
A HELP Committee spokesperson added Thursday that Cassidy has voted for every Trump nominee and that the panel will “do its job to confirm qualified nominees and serve the American people.”
“Anyone who says otherwise doesn’t know what they’re talking about,” the spokesperson added.
The White House official said “Trump remains committed to nominating highly qualified individuals for a variety of posts that are aligned with the agenda the American people elected him to enact” and will continue to send nominees to the Senate, including to the HELP Committee.
Senate Majority Leader John Thune said in an interview he had not spoken to the White House about their plans for some of the major picks under HELP jurisdiction but he encouraged the administration to send nominees.
“I think it’s always better to have people in permanent positions rather than temporary,” Thune added.
Megan Messerly contributed to this report.
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