Congress
House members release bipartisan ‘principles’ for extending Obamacare subsidies
A bipartisan quartet of House lawmakers released a “statement of principles” Monday for a potential compromise on an extension of Obamacare subsidies, which would include a two-year sunset and an income cap for eligibility.
The compromise framework from Republican Reps. Don Bacon of Nebraska and Jeff Hurd of Colorado, and Democratic Reps. Tom Suozzi of New York and Josh Gottheimer of New Jersey, is the first public tangible offering on health care policy since the government shutdown began 33 days ago.
Democrats are continuing to insist that any deal to end the shutdown involve an agreement around extending expanded tax credits for Affordable Care Act subsidies that are due to expire at the end of the year. But GOP leaders and President Donald Trump have refused to negotiate on health care until after the government is reopened.
The new blueprint is a sign the partisan freeze is thawing among some factions on Capitol Hill — and that frustration over the impasse is growing. Moderate Republicans in the House are especially losing patience, eager to address the health care issue while Speaker Mike Johnson has kept the chamber out of session since September.
“Congress is gridlocked, and too many Americans have lost faith that we can work together,” Bacon, Hurd, Suozzi and Gottheimer said in a statement. “Our hope is that this shared statement of principles will inspire bipartisan collaboration across Washington and help get Congress back to work for the American people.”
Bacon, in an interview Monday, said he hopes that senators — especially appropriators working on bipartisan talks around full-year government funding bills — will use this plan as fodder to negotiate an ACA extension framework.”I’m all for breaking the logjam,” Bacon said. “A lot of Republicans don’t want to see these premiums go up either.”
The four lawmakers are endorsing a two-year extension of the enhanced tax credits and an income limit on who can qualify for them, which would range from $200,000 to $400,000.
In a bid to appease conservatives who believe that the credits are wasteful and rife with fraud, the bipartisan coalition calls for both parties to identify ways to crack down on agents and brokers who engage in fraudulent practices when enrolling people in Obamacare health plans.
The lawmakers also want to ensure that enrollees are notified of the value of the premium tax credits and that ACA marketplaces track down “ghost beneficiaries” who may be improperly enrolled in the plans.
Bacon has hammered Democrats for not supporting the House-passed stopgap spending measure but said Monday the minority party needs an off-ramp over their ACA demands amid the shutdown, and his proposal with Hurd, Suozzi and Gottheimer could offer that path. He added that such a plan would likely need to be attached to the long-term government funding bills members of the House and Senate Appropriations Committee are continuing to work through along the sidelines of shutdown talks.
But it’s unlikely the proposal would go far enough for hard-liners who want deeper reforms as part of any ACA extension — not to mention those who are opposed to any subsidy extension at all. The compromise plan is silent on whether it would restrict the ACA plans from covering procedures that would end pregnancies — a major demand of the anti-abortion lobby.
And while all four lawmakers are part of the bipartisan House Problem Solvers Caucus, the plan failed to receive the official support of that full caucus, according to two people granted anonymity to share private deliberations. Members of the group had been discussing pieces of the reforms — including a $200,000 income cap for the full subsidies — for several weeks, as Blue Light News has reported.
Rep. Brian Fitzpatrick of Pennsylvania, the GOP co-chair for the group, said in an interview in late-September he wanted an ACA deal before open enrollment started last Saturday, a deadline that came and went without Democratic and Republican leaders even talking about the topic. In some states, enrollees are now seeing theirout-of-pocket premiums for 2026 skyrocket by more than 100 percent.
Notably, however, Fitzpatrick didn’t sign onto the plan released Monday, whereas the Democratic co-chair, Suozzi, forged ahead with Bacon, Hurd and Gottheimer. Fitzpatrick has yet to fully review the plan, according to a person with direct knowledge of the matter.
Senate Republicans, including Sens. Dan Sullivan and Lisa Murkowski of Alaska and Tommy Tuberville of Alabama, have also been quietly workshopping their own ideas for a compromise on the subsidies, but have yet to indicate they are close to anything that could be made public.
Other vulnerable House Republicans, like Rep. Jen Kiggans of Virginia, is a co-sponsor with Suozzi and others on legislation they introduced prior to the start of the shutdown that would extend the subsidies for one year.
Congress
Capitol agenda: Lawmakers brace for a DHS shutdown
Congress just launched itself onto a nine-day runway to overcome deep partisan divides over the fate of President Donald Trump’s immigration enforcement agenda — and conditions are trending toward another lengthy shutdown for the Department of Homeland Security.
According to several senators, DHS funding talks were largely on hold while lawmakers waited for the House to clear the Senate-passed, five-bill spending package Tuesday and end the brief partial government shutdown. Now lawmakers have little time left before the Feb. 13 deadline to reach a bipartisan agreement on major changes to DHS policies and avoid a funding lapse that will also affect TSA, the Coast Guard, FEMA and other agencies — and Democrats are threatening to block any extension of the two-week stopgap measure.
— A stalemate over demands: Senate Minority Leader Chuck Schumer said Tuesday that Democrats plan to formally present Republicans a proposal soon for placing more guardrails around ICE and Customs and Border Protection. The wishlist could include tighter rules on the use of warrants, a ban on masks and mandates for body cameras and IDs on federal agents.
There’s broad GOP opposition to many of these ideas. Speaker Mike Johnson argued Tuesday that unmasking would be especially dangerous for the agents.
“I can tell you that we are never going to go along with adding an entirely new layer of judicial warrants,” Johnson added. “It is unimplementable.”
Senate Majority Leader John Thune believes negotiations will need to be primarily between Democrats and the White House, though Republicans will play a part. He said Alabama Sen. Katie Britt, the top Republican on the Senate Homeland funding panel, will take the lead for the GOP.
Republicans want to crack down on so-called “sanctuary cities,” localities that don’t comply with federal immigration laws. Some are also mulling whether to try and attach bigger immigration provisions onto the DHS stopgap bill, like increasing penalties for immigrants who cross the border illegally.
But trying to crack down on “sanctuary cities” has long been a non-starter for Democrats. “We’re not going to make people unsafe, this is about making people safe,” said Washington Sen. Patty Murray, her chamber’s top Democratic appropriator.
— A slippery stopgap slope: House Minority Leader Hakeem Jeffries told reporters Tuesday that “an additional [continuing resolution], from our standpoint, is off the table” despite warnings from Thune and other Republicans that another short-term punt may be necessary to buy more time for talks.
Some lawmakers are increasingly pessimistic about the prospects for reaching any DHS deal given Congress’ perennial struggle to agree on immigration policy.
“I’m a little skeptical of the entire project here of trying to lard up an appropriations bill that funds critical agencies with a whole bunch of statutory restrictions,” Sen. Josh Hawley (R-Mo.) said.
Thune warned there’s another possibility: If negotiations drag on too long, lawmakers could eventually be forced to swallow a measure that keeps the status quo at DHS for the remainder of the fiscal year with no policy changes or new funding levels.
“My assumption would be that even if we don’t have an agreement that we would do a CR for some foreseeable amount of time” to continue discussions, Thune told Blue Light News, “or maybe at some point we have to resolve to a full-year CR.”
What else we’re watching:
— Tech hearing: House Judiciary will hold a hearing on Europe’s tech laws at 10 a.m. It’s the latest escalation in the transatlantic fight over regulations that Republicans claim disproportionately silence conservative speech online. European countries view the regulations as crucial guardrails for ensuring online safety and fair market competition, while American tech companies argue such measures target them unfairly.
Jordain Carney, Meredith Lee Hill, Mia McCarthy and Gabby Miller contributed to this report.
Congress
Congress has 10 days to cut a DHS funding deal. Don’t hold your breath.
Congress has 10 days to prevent another shutdown — this one exclusively affecting the Department of Homeland Security. There’s not much optimism about a deal.
At issue is one of the thorniest issues in national politics — federal immigration enforcement, including new guardrails for agencies and repercussions for the local jurisdictions that refuse to cooperate with them.
Already, Republicans are rejecting central demands from Democrats, including tightening warrant requirements and banning federal agents from wearing masks. Democrats are pouring cold water on a GOP push to target so-called “sanctuary cities.”
Senate Majority Leader John Thune warned Tuesday that getting an agreement to President Donald Trump’s desk by the new Feb. 13 deadline is an “impossibility.”
“We’ve got a very short timeframe in which to do this, which I argued against,” he said, referring to his opposition to the two-week DHS punt Democrats insisted on.
House Minority Leader Hakeem Jeffries, meanwhile, said Tuesday that another short-term patch was “off the table” for Democrats.
Together those comments portend a potentially lengthy shutdown that would disproportionately impact the DHS functions that don’t involve immigration enforcement, including TSA, FEMA and the Coast Guard. That’s because agencies like ICE and Border Patrol that have been at the center of the Democratic uproar received funding through the domestic policy megabill Republicans enacted in July.
That reality had a critical mass of Senate Democrats ready to swallow full-year DHS funding last month that held agency budgets flat and passed the House with only seven Democratic votes. But that plan evaporated on Jan. 24, when DHS agents killed 37-year-old Alex Pretti on the streets of Minneapolis and sparked bipartisan calls for new strictures on the Trump administration.
Thune and other Republicans are already warning that they believe they will need to buy more time after the Feb. 13 deadline. Negotiations over an immigration enforcement deal have largely been on hold, according to several senators, as the House wrestled with the larger spending package that finally passed Tuesday.
So far, Republicans and Democrats can’t even agree on who will be doing the negotiating. Senate Minority Leader Chuck Schumer is putting the onus on Thune. But Thune and other Republicans believe any viable deal will need to be negotiated primarily by the White House while keeping congressional Republicans “engaged.”
Sen. Brian Schatz (D-Hawaii) said Tuesday that a deal would be difficult “without Trump deciding to drag Republicans in a direction that is normally uncomfortable for them.”
“But that’s different from John Thune just declaring that he’s out,” he added. “The majority leader can’t take himself out of the negotiation.”
A lengthy DHS shutdown could be uncomfortable quickly for both parties. While ICE and Customs and Border Protection would largely have a free hand to continue immigration enforcement, the Coast Guard and TSA would lose their appropriations — potentially snarling airports and threatening paychecks for an entire military branch. The Secret Service and Cybersecurity and Infrastructure Security Agency would also be affected.
Plenty of members are skeptical there will be a deal at all, given Congress’ perennial struggle to reach an agreement on anything even tangentially related to immigration.
“I have to say that I’m a little skeptical of this entire enterprise,” Sen. Josh Hawley (R-Mo.) said. “I’m a little skeptical of the entire project here of trying to lard up an appropriations bill that funds critical agencies with a whole bunch of statutory restrictions.”
Rep. Glenn Ivey (D-Md.) said of the incipient negotiation, “I can’t say it feels like good faith.”
Democrats have outlined several key demands for any negotiations and are expected to formally present a proposal “very shortly,” according to Schumer.
But while Republicans have expressed openness to some of the Democratic proposals, such as body cameras and deescalation training, there is broad opposition to requiring immigration officers to obtain judicial warrants instead of administrative warrants before seeking apprehensions. Many, including Speaker Mike Johnson, also oppose requiring federal agents to remove masks, arguing it would be a possible safety threat.
“I can tell you that we are never going to go along with adding an entirely new layer of judicial warrants,” Johnson said Tuesday. “It is unimplementable. It cannot be done, and it should not be done. It’s not necessary.”
Republicans, meanwhile, are pushing for language cracking down on “sanctuary cities” that don’t comply with ICE and CBP to be included in any agreement that includes new restrictions on those agencies. Other Republicans are mulling trying to attach bigger immigration provisions, including increasing penalties for immigrants who cross the border illegally or re-enter the country illegally.
Sen. Lindsey Graham (R-S.C.) used an Oval Office bill signing with Trump Tuesday to make his pitch for a sanctuary cities crackdown as part of any negotiation to extend DHS funding.
“If you want a debate on how to solve this problem, show up next week,” he said.
Trump encouraged the push: “I hope you’re going to press that very hard,” he told Graham.
But the policies Graham and other Republicans are proposing — such as imposing criminal penalties on state and local officials who “willfully interfere” with immigration enforcement — have long been a nonstarter for Democrats.
Sen. Dick Durbin, the No. 2 Senate Democrat, said it already would be “difficult” to get his caucus to support another funding punt, noting that roughly half of his Democratic colleagues already voted against the last spending package.
And trying to link sanctuary cities to the debate over immigration enforcement tactics, Durbin added, is “not realistic.”
“There’s so many different versions of sanctuary law in these communities and states,” he said. “What we’re talking about is funding this agency, but making sure there are reforms before funding.”
Other Senate Democrats who voted for the spending deal last week — including Sen. Patty Murray (D-Wash.), the top Democrat on the Appropriations Committee — are already warning that Republicans shouldn’t count on their votes again for another punt.
Another senior Democratic appropriator, Sen. Jeanne Shaheen of New Hampshire, said she believed there was enough time to get a deal if negotiators were “committed.”
“But it would help if they start negotiating,” Shaheen said.
Congress
Powell pardon wouldn’t end Fed blockade, Tillis says
A presidential pardon of Federal Reserve Chair Jerome Powell would not end Sen. Thom Tillis’ one-man blockade of central bank nominees, the North Carolina Republican said Tuesday.
Only the Justice Department resolving its investigation into Powell’s Senate testimony on a massive Fed renovation project would suffice, he added, doubling down on his intention to use his vote on the Senate Banking Committee as a bulwark against any attempt to dilute the bank’s independence.
Tillis is the main obstacle to the swift confirmation of Kevin Warsh, President Donald Trump’s nominee to replace Powell as Fed chair. He has vowed to oppose any Fed nominee until the Powell investigation ends.
A pardon could be a fast and definitive way for Trump to end any legal peril for Powell, but Tillis called the idea “silly” and a “mistake” because it could imply that Powell is guilty of committing perjury during his appearance last year before the Banking Committee.
“A pardon to me almost validates the whole notion for the investigation,” Tillis said. “If they think they’ve got a valid case, then we’ll just see it through to the end.”
With Republicans holding a 13-11 majority on the Banking panel, Tillis’ opposition is enough to prevent Warsh from getting advanced out of committee unless he gets support from Democrats on the panel.
Tillis said Tuesday that he thought Warsh would be a “fine” Fed chair “at some point in the future if not this Congress, then the next Congress, if they don’t get this investigation done.”
“I’m not budging one inch,” he added. “This is foundational to Fed independence and if you reward this sort of behavior and there’s no compelling evidence that could convince me or a jury that he’s guilty of it then you’ve got to stand on Fed independence.”
Trump batted down a question Monday about whether he would ask prosecutors to drop the Powell case in order to clear a path for Warsh. He instead told reporters that Jeanine Pirro, the U.S. attorney for D.C., would “take it to the end and see.”
Responding to Trump’s remarks, Tillis said it showed “an area where we’re in agreement this week — we’re both willing to go all the way.”
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