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Democrats want to extend Obamacare credits. Republicans have other ideas.

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Senate Democrats are projecting optimism they’ll be able to strike a bipartisan deal to extend Obamacare subsidies in the coming weeks. But Senate Republicans have their own plans.

Republicans appear to be quickly pivoting from the debate around Affordable Care Act tax credits to developing their own health policy agenda, with many conservatives now feeling like they have the blessing of President Donald Trump to pursue alternative solutions to spiking insurance premiums. Among the ideas they’re considering is the creation of new health savings accounts.

The shutdown-ending deal the Senate passed Monday night lacked an extension of the Obamacare subsidies, which expire at the end of the year, and Democrats instead secured a commitment for a vote on the credits next month. Democrats who brokered that government funding compromise are insisting they’ll be able to make headway on negotiations over the tax credits and are looking to land the bipartisan health care compromise by the second week of December.

But the fractured conversations among Republicans are promising to bog down negotiations as Obamacare beneficiaries begin to lock in their rates for the year ahead. Lawmakers on both sides of the aisle are starting to privately admit it’s likely too late to avert a major premium hike for millions of Americans in 2026.

“Obviously our folks have an interest in having some of our own ideas out there,” Senate Majority Leader John Thune said Monday when asked whether Republicans would generate a counteroffer on the subsidies or collaborate with Democrats. “There’s some goodwill on this issue. We’ll see if something lands.”

Thune told reporters that Senate Finance Chair Mike Crapo of Idaho, Senate HELP Chair Bill Cassidy of Louisiana, Senate GOP Steering Committee Chair Rick Scott of Florida and Finance Committee member Roger Marshall of Kansas will be among those spearheading talks with Democrats on a potential Obamacare compromise.

On the Democratic side, Senate Minority Leader Chuck Schumer is expected to run point on health care talks, but other Democrats including Sens. Jeanne Shaheen of New Hampshire and Senate Finance ranking member Ron Wyden of Oregon will be involved, according to a person granted anonymity to share internal caucus dynamics.

Shaheen, fellow New Hampshire Democratic Sen. Maggie Hassan and independent Sen. Angus King of Maine brokered the shutdown-ending deal Schumer opposed for not including an ironclad promise to extend the credits.

GOP members of Senate Finance, which has jurisdiction over the ACA, huddled Monday afternoon to broach their own ideas, though they were tight-lipped afterward about what proposals were discussed.

The gathering came after Cassidy and Scott called on Republicans to ditch the Obamacare tax credits altogether and fund tax-advantaged health savings accounts for individuals to pay directly for care.

Sen. Thom Tillis, a retiring Finance Committee Republican, said in an interview Monday that it would probably be smart to extend current policy for a year because of the encroaching deadline and then implement changes the following year.

“If you really want to bend the curve on health care, then you gotta have a serious discussion about what works and what’s not working in Obamacare and fix it,” he said.

Senate Republicans appeared Monday to be largely split over whether to pursue the option endorsed by Tillis or plow ahead on a more ambitious conservative overhaul of the nation’s health care system.

Cassidy has been exhorting his colleagues to back a new idea to put money into employer-sponsored accounts that would allow individuals to set aside pre-tax dollars for medical expenses.

Trump over the weekend gave a boost to the concept when he said in a Truth Social post that “the Hundreds of Billions of Dollars currently being sent to money sucking Insurance Companies… [should] be sent to the people.”

“If we extend the enhanced premium tax credits, $26 billion go to insurance companies,” Cassidy told reporters Monday. “If we put it into a flexible spending account, 100 percent is going to the person who’s making a decision of where to spend their dollars.”

Cassidy added that he’s spoken to Democrats about the idea who “support it” and “want to know more.”

A challenge for Democrats in the coming weeks will be to train Republicans’ focus on the task of finding a compromise around the ACA credits, with the clock ticking to reach a deal.

“We have to write a version that is good for our values that helps people, but also is designed to get some Republican votes,” said Sen. Tim Kaine of Virginia, who was among the eight members of the Senate Democratic Caucus who voted to reopen the government Monday evening.

But even if Senate Democrats can cobble together a deal that attracts enough votes in their chamber, Speaker Mike Johnson remains non-commital about putting an Obamacare bill on the floor in the House.

Some Congressional Republicans who say they are committed to drafting an extension of the ACA subsidies are advocating for conservative modifications, including lowering the income cap that determines eligibility and restricting the subsidies from covering abortions. An income limit could get bipartisan buy-in, but abortion restrictions are likely a nonstarter for most Democrats.

Some House Republicans who see political peril in letting the subsidies lapse say privately that there’s enough support on their side of the aisle to help Democrats force a vote on the subsidies through a so-called discharge petition. But whether Republicans would actually forge ahead in bucking House leadership remains to be seen.

“I know that there are Republicans who want to fix this, but there’s no resolve, as far as I can tell, to take this up in the House if we’re able to pass it in the Senate,” said Sen. Tammy Baldwin (D-Wis.), who voted against the bill to reopen the government Monday night. “And that’s why I couldn’t agree to that package.”

Jennifer Scholtes and Jordain Carney contributed to this report.

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Congress

House Republicans eye next week for housing bill vote

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House leadership is eyeing the week of Feb. 9 for a vote on a bipartisan housing package, according to four people with direct knowledge of the planning.

Senior lawmakers have also been mulling whether to consider the widely supported bill under suspension of House rules, which would expedite passage of the legislation, said three of the people who were granted anonymity to discuss internal deliberations.

However, plans for the bill are not locked in and could be subject to change as the House deals with a partial government shutdown.

The Housing in the 21st Century Act, which overwhelmingly advanced through the House Financial Services Committee in December, is part of a push by Congress to pass legislation that could address a growing housing affordability crisis. The bill includes 25 provisions that aim to increase the housing supply, modernize local development and rural housing programs, expand manufactured and affordable housing, protect borrowers and those utilizing federal housing programs, and enhance oversight of housing providers.

House Financial Services Chair French Hill (R-Ark.) said Friday that he’s pushing for the Housing for the 21st Century Act to receive a floor vote expeditiously.

”I hope that that bill can come to the House floor in just a few days. I really am pushing for that, I think it’s the right decision,” Hill said on Bloomberg Radio.

The Senate’s housing bill, the ROAD to Housing Act, passed the upper chamber as an amendment to the National Defense Authorization Act but may be put to a separate floor vote. If the House is able to pass its own version by a wide margin before the Senate, it could have additional leverage for negotiations with the upper chamber for a final bill. Hill and other House Republicans have said the Senate bill, which received overwhelming bipartisan support in the Senate Banking Committee, has a number of provisions that would not be acceptable among House GOP members.

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Bill and Hillary Clinton now agree to testify before Congress

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Bill and Hillary Clinton have agreed to testify before the House Oversight and Government Reform Committee as part of the panel’s investigation into convicted sex offender Jeffrey Epstein, an Oversight aide said Monday evening.

It’s a remarkable reversal for the former president and secretary of state, who were adamant they would defy committee-issued subpoenas and risk imprisonment by the Trump Justice Department as the House prepared to vote Wednesday to hold them both in contempt of Congress.

After both skipped their scheduled depositions earlier this year, the Oversight Committee voted on a bipartisan basis in January to approve contempt measures for each of them.

Although both have said they had no knowledge of Epstein’s crimes, they have maintained that the subpoenas were not tied to a legitimate legislative purpose, rendering them invalid. They also complained the GOP-led exercise was designed to embarrass and put them in jail.

It is not immediately clear when they will appear and if the House will continue to pursue the contempt votes.

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Top House Democrats split on funding vote

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Senior House Democrats are going in different directions on a massive funding bill headed to the House floor as soon as Tuesday, underscoring the sharp divisions inside the Democratic ranks on the $1.2 trillion spending package.

Rep. Rosa DeLauro of Connecticut, the Democrat on the House Appropriations Committee, said Monday she would vote for the funding package when it goes to the floor Tuesday — breaking with a large swath of colleagues who oppose the measure over its extension of Homeland Security funding, including immigration enforcement operations.

“I will support this package,” DeLauro said during Monday meeting of the Rules Committee. She noted it secures funding for the five-full year, bipartisan bills and extends funding at current levels for DHS for 10 days.

DeLauro said without the DHS stopgap Democrats “won’t be able to bring the kinds of pressure” necessary to make changes to the full-year DHS bill they’re negotiating with the White House.

But Rep. Jim McGovern of Massachusetts, the top Rules Democrat, said he was dead-set against the bill due to the DHS funding.

“I will not vote for business as usual while masked agents break into people’s homes without a judicial warrant, in violation of the Fourth Amendment,” he said.

Neither leader, however, is expected to vote for a key procedural measure setting up a final debate and approval for the massive bill, which passed the Senate on Friday. That measure, known as a rule, is also expected to tee up contempt-of-Congress votes on Bill and Hillary Clinton over their decision not to fully cooperate in a Oversight Committee probe into Jeffrey Epstein. GOP leaders are scrambling to build support for that measure as some in their ranks agitate for amendments, including the attachment of a partisan elections bill.

“Republicans have a responsibility to move the rule, which, by the way, includes a wide variety of other issues that we strongly disagree with,” House Minority Leader Hakeem Jeffries told reporters Monday.

Jennifer Scholtes contributed to this report.

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