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Mass firing threats don’t faze Democrats

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President Donald Trump said Monday he’s on the verge of enacting mass firings of federal workers. But Democrats say it won’t make them budge in the increasingly rancorous shutdown standoff.

The mass layoffs, dreamed up by White House budget director Russ Vought, would be the most significant pressure point yet as the shutdown enters a seventh day Tuesday — if Trump follows through. Already he has blown past Vought’s own prediction that firings would start by the end of last week, and no action was taken in the immediate aftermath of a fifth failed Senate vote Monday to reopen the government.

But ahead of that vote, Democrats projected defiance and argued the White House threats are hollow — not because they don’t believe the administration won’t follow through, but because they think it would be swinging the meat-axe regardless.

“They were firing people right and left before the government shutdown,” said Sen. Dick Durbin of Illinois, the No. 2 Senate Democrat, when asked about the threats.

Proceeding with “reductions in force,” as Vought has threatened, would go well beyond the typical shutdown furloughs, where federal workers are hired back once the government reopens. But they would be in keeping with the Trump administration’s sledgehammer approach to the federal bureaucracy since January.

Trump officials have made no secret they are using the threats as a cudgel in the shutdown fight: One of his top economic advisers, Kevin Hassett, said Sunday the administration was closely watching how Democrats voted Monday night — in effect, daring them to risk their own constituents’ livelihoods.

More than 20 percent of the federal workforce resides in the District of Columbia, Maryland and Virginia. But even Democrats representing the capital’s suburbs shrugged off the threat.

“[Federal workers] know that he’s going to move forward with firing as many federal government employees as he possibly can,” Rep. Glenn Ivey (D-Md.) told reporters. “And this is a threat that they don’t think is any different from what he’s been doing before, and I think they’re right.”

Sen. Chris Van Hollen (D-Md.) was more direct in a gaggle with reporters last week, calling Trump’s plans “Mafia-style threats and blackmail.”

They have backing from federal worker unions, who have generally encouraged Democrats to keep up their fight against Trump as lawmakers urge Republicans to come to the negotiating table on health care. Democrats also believe that the threat of a steep premium hike for Affordable Care Act insurance plans will resonate with voters in the midterms.

Two of the biggest unions, the American Federation of Government Employees and the American Federation of State, County and Municipal Employees, filed a federal lawsuit last week seeking to block Vought from proceeding with any layoffs during a shutdown — arguing that mass firings are among the nonessential activities that must be curtailed during an appropriations lapse.

Asked about the threats Monday, Trump said if the shutdown continues, “It could, at some point it will” trigger layoffs

The firings aren’t the only pressure point bearing down on lawmakers and the administration. Most civilian federal workers will miss their first payback Friday, while active duty military members could go without pay starting Oct. 15.

Durbin acknowledged that there might be a “tripping point” where the fallout from a shutdown forces a resolution but could not say what it might be.

Senate Minority Leader Chuck Schumer told reporters shortly after Monday night’s vote that if there are layoffs “it falls on Donald Trump’s shoulders.”

“He’s doing it, not Democrats,” the New York Democrat said. “And the American people know that.”

Democrats have been buoyed by polling that shows voters holding Trump and Republicans more responsible for the shutdown than Democrats — for now. That has given Democrats confidence in their positions, with some saying they have been emboldened by the mass-firing threats.

“Having been in many budget negotiations, I know that the person to make the first threat is usually the one with the least leverage,” said Rep. Sarah Elfreth (D-Md.).

Trump suggested Monday he was already in talks with Democrats about their health care demands, but top Democratic leaders quickly batted down that claim while emphasizing that they stand ready to negotiate.

“I do not know of any Democrats who have spoken to President Trump or members of his administration on this issue of reopening the government, enacting a bipartisan spending agreement, and addressing the Republican health care crisis,” House Minority Leader Hakeem Jeffries told reporters Monday, while Schumer similarly told reporters that it was his “understanding” that Trump had not spoken to any Democrats.

Some Republicans, like Alabama Sen. Tommy Tuberville, have defended Trump and Vought’s threats, saying layoffs are necessary to address a “bloated” federal bureaucracy. “We’ve got to find some way to cut back on the debt we have,” Tuberville added.

But others have reacted to the mass firing threats with unease. They worry that the Trump administration’s bald attempts to focus political pain on Democrats and their constituencies muddles their attempt to keep the shutdown blame game focused solely on Schumer and Senate Democrats — and makes a solution to the standoff harder to find.

“I think that digs us a deeper hole,” Sen. Thom Tillis (R-N.C.) said last week in reference to Vought’s campaign targeting blue states. “I think if you do that, you’re going to create a bad faith environment.”

Jennifer Scholtes contributed to this report.

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Congress

Trump’s visa fee sparks rare bipartisan interest in immigration legislation

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President Donald Trump’s efforts to impose a massive new fee for employers seeking to hire foreign workers in high-skill fields have reenergized congressional Republicans’ efforts to pass legislation strengthening the controversial visa program.

After years of dissipating interest inside the GOP to tackle any immigration policy not directly tied to border security, the current moment appears ripe for a legislative breakthrough around expanding the use of so-called H-1B visas, which have propelled the country’s tech industry for decades.

Opponents say the 35-year-old program siphons jobs from American citizens and unfairly deflates wages. But it also has united an unlikely group of lawmakers across the ideological spectrum who want to help businesses in need of workers with specialized expertise. That contingent includes Republicans who have typically been reluctant to support legislation that would allow more immigrants into the country.

The recent presidential proclamation forcing employers to pay $100,000 to hire workers under H-1B visas — a move designed to incentivize domestic hiring practices — is instilling fear and confusion inside hospitals and universities that rely on the program. It also has sent a jolt through the Senate, where the top Republican and Democrat on the Senate Judiciary Committee recently reintroduced legislation designed to strengthen the rules for the program and prioritize applicants with advanced degrees in science, technology, engineering or mathematics.

“We need an immigration bill, badly,” said Sen. Tommy Tuberville (R-Ala.), a cosponsor of the bill who is working to get fellow conservatives on board with the effort. He’s also running for governor of a state with multiple major research universities.

“I think Trump, perhaps inadvertently, is strengthening our case for the bill,” said Sen. Richard Blumenthal (D-Conn.), another co-sponsor of the legislation.

Lawmakers on both sides of the aisle, however, are skeptical there is sufficient political will to make any meaningful progress on the issue. Immigration hard-liners still occupy senior positions throughout the White House and hold power on Capitol Hill; Trump has waffled on the question of whether the H-1B policy is worth preserving; and at least one key Democrat says any conservative enthusiasm now to tackle the program is too little, too late.

“There’s no appetite for immigration legislation at all,” said Sen. Dick Durbin (D-Ill.), the ranking member of the Senate Judiciary Committee. He is set to retire in 2027 with little to show for his work over nearly three decades in office to pass legislation that would create a pathway to citizenship for millions of undocumented immigrants.

The American economy relies heavily on H-1B visas, with the number of people applying for slots vastly outnumbering those which are available each year. And this is not the first time lawmakers have seen a glimmer of hope around efforts to overhaul the program — only to later see it fade.

Almost a year ago, the billionaire tech entrepreneur Elon Musk was touting high-skilled immigration throughout the United States through H-1B visas, saying they were necessary to help fuel innovation. Trump, who suspended the program during his first term, suddenly appeared ready to side with Musk, lauding the initiative that he claimed to have leveraged for his own business interests.

Rep. Jim Jordan (R-Ohio), a MAGA stalwart and Musk acolyte, also signaled an openness to revisiting the H-1B system from his perch as chair of the House Judiciary Committee.

But Musk has since that time had a public falling-out with the president, and anti-immigration hawks like White House deputy chief of staff Stephen Miller have Trump’s ear. Trump’s new H-1B visa fee is a reflection of the administration’s current stance.

“Anything that’s going to get done, the president’s got to sign off on it,” said Sen. Rick Scott (R-Fla.), “So it’s going to be something that the president feels comfortable with.”

Scott worked on a previous effort to limit the number of H-1B recipients who can receive green cards annually. Different versions of that bill passed the House and the Senate in 2019 and 2020, respectively, but the two measures were never reconciled, and the legislation was never signed into law.

Wishing to seize the moment but also cognizant of the political challenges ahead, Senate Judiciary Chair Chuck Grassley (R-Iowa) in an interview shifted his comments to deliver a personal plea to Trump himself.

“The president has brought attention to the problems with H-1B’s,” the Iowa Republican said. “If the president will read your story, I’d give him this message: He’s created great credibility because he has closed down the border — great credibility on immigration issues.”

Endorsing an H-1B overhaul bill, Grassley continued, “would give him a chance to get some of these really simple things in immigration that ought to pass the Congress.”

The White House did not respond to a request for comment on its intentions to work with Congress on a legislative fix.

George Fishman, a senior legal fellow at the Center for Immigration Studies and former Department of Homeland Security official in the first Trump administration, said Trump is being pulled in radically different directions by those advising him. Barring true interest from Trump in the matter, Fishman suspected congressional action is unlikely.

“Based on three decades of bitter experience, I’m sort of resigned to not expecting things to happen legislatively,” said Fishman, who also worked on immigration policy as a Hill aide.

Trump aside, the political dynamics around the immigration issue on Capitol Hill are broadly problematic. For years, efforts to update the nation’s outdated immigration policy have fallen short. A bipartisan Senate “gang” in 2013 managed to pass a bill that combined border security with a pathway to citizenship, but it was never taken up in the House.

Since that time, the Trump ethos around immigration has further polarized the issue, hardening even Republicans who at one point linked their personal brands to being willing to work with Democrats on it.

That includes Sen. Lindsey Graham (R-S.C.), who was once Durbin’s main partner in trying to pass legislation that would protect young immigrants brought to the U.S. illegally by their parents as children — the recipients of the Deferred Action for Childhood Arrivals, or DACA, program.

Graham now says he isn’t interested in doing anything to expand legal immigration until the border is properly secured — and he doesn’t trust Democrats to restrain themselves.

“We all are agreed that we need H-1B reform,” Graham said in an interview. “Well, then Democrats will say, ‘Okay, let’s reform that, but what about the DACA folks?’ And they’ll want something there, and that’s just the way it goes.”

Grassley said he understood that reality. “We got some people on the right that think they aren’t going to vote for any [immigration] legislation until you load up 12 million people and get them out of the country.”

In the meantime, Trump’s new $100,000 fee is being challenged in court by a coalition of unions, education groups and others who argue the cost is unworkable and unjustified. A judge could strike down the proclamation, and the case is ongoing.

Until then, Grassley suggested the chaos and anxiety being caused by the presidential action could work to the advantage of the program’s proponents.

“The business groups that fought the Grassley-Durbin bill over the last 10 years, that are now upset with the $100,000 the president’s putting in on each one of these [visas] … maybe they would realize that they shouldn’t have fought our legislation,” he said.

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What Republicans could offer Democrats on health care after the shutdown

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A menu of options is starting to emerge around what a compromise might look like for extending a suite of Affordable Care Act tax credits, which have become a focal point in the current government funding standoff.

With the shutdown about to enter its third week, Speaker Mike Johnson and Senate Majority Leader John Thune continue to insist that any negotiation over the future of the enhanced Obamacare subsidies will need to happen after the government reopens.

Behind the scenes, however, Republicans on Capitol Hill and inside the Trump administration are discussing potential pathways to prevent the tax credits from expiring at the end of the year.

According to two people granted anonymity to share details about private discussions, some members of the House GOP leadership circle are having early, informal conversations with officials from the White House Office of Legislative Affairs and the Domestic Policy Council to develop a framework for a deal.

As they await President Donald Trump’s buy-in, members of House Republican leadership have discussed imposing minimum out-of-pocket premium payments for ACA enrollees, according to one of the people familiar with the internal conversations.

Ultimately, whatever they come up with has to be something not only Democrats can accept but also Republicans, who are sharply divided over whether to extend the credits at all. Some GOP lawmakers say the subsidies are fueling waste, fraud and abuse; others see political peril in letting them lapse, causing premiums to skyrocket and millions to lose health insurance.

“About 90 percent of members of our conference, they feel strongly … that Obamacare itself and the subsidies have failed,” House Majority Leader Steve Scalise (R-La.) told reporters Friday. “It’s helped insurance companies pack their bottom line, but it’s crushed families who are paying higher premiums.”

But the increased back-channeling inside the GOP is a strong sign the administration is preparing for eventual negotiations on the tax credits and possible wider health policy changes.

“I think what we’re seeing is the dam breaking here,” said House Appropriations ranking member Rosa DeLauro (D-Conn.) on a call with reporters Friday.

Here are some of the policy options currently under consideration among Republican negotiators that could become the basis for an agreement — or, at the very least, an opening offer.

New income limits

Conservatives complain that the expansion of the tax credits under former President Joe Biden removed income caps on the credits, which had previously restricted the subsidies to individuals making below four times the poverty line.

Key GOP negotiators in the House indicate openness to imposing new income caps. They include Reps. Jen Kiggans of Virginia and Brian Fitzpatrick of Pennsylvania, who are touting bipartisan legislation to extend the subsidies for a year.

Influential Democrats — such as Senate Appropriations ranking member Patty Murray of Washington and House Ways and Means ranking member Richard Neal of Massachusetts, have not rejected this proposal out of hand. Murry, for instance, has noted that the vast majority of beneficiaries of the credit make below $200,000 already.

Several Republicans in the bipartisan House Problem Solvers Caucus have likewise privately floated a $200,000 income cap.

Minimum out-of-pocket premiums

Paragon Health Institute, an influential conservative health policy think tank, has been hammering Republicans with data indicating there are millions of “phantom enrollees” in the ACA — individuals who don’t know they’re enrolled in plans because the premiums are fully subsidized by taxpayers. This has sparked interest among conservatives in mandating a minimum out-of-pocket payment to unlock eligibility.

“It doesn’t have to be big, but if you get a notice for a five-buck premium, all of a sudden, you’re like, ‘Wait a minute, what?’” said Sen. Dan Sullivan in an interview. The Alaska Republican is part of a “working group” of GOP senators trying to come up with a conservative framework for extending the subsidies.

Cutting off enhanced tax credits for new enrollees 

Allowing current enrollees continued access to the enhanced tax credits could emerge as a palatable compromise and blunt the impact of premium hikes set to take effect this fall. The “grandfathering” of the subsidies would likely be accompanied by other guardrails to root out waste and fraud in the health plans.

But Melanie Egorin, a professor at the University of Virginia and a former Health and Human Services official under the Biden administration, points out that policy would be particularly tough as the labor market softens and people lose their Medicaid coverage due to new work requirements enacted through the GOP megabill over the summer.

“Creating a grandfathering [mechanism] in a time where the economy is not looking so great for many Americans, feels really unfair,” she said in an interview.

New abortion restrictions 

Democrats and Republicans disagree in the first place whether the tax credits truly subsidize plans that cover abortion. But influential anti-abortion groups, such as Susan B. Anthony Pro-Life America, have mounted fierce campaigns to convince lawmakers and the public the plans make the procedure more affordable.

Conservatives sympathize with the argument, but the anti-abortion messaging campaign has in many ways made the policy fight more intractable. Sen. Jeanne Shaheen of New Hampshire, the top Democratic negotiator on the issue, and Sen. Ron Wyden of Oregon, the senior Democrat on the tax-writing Finance Committee, have already indicated that abortion restrictions are a nonstarter for any deal on the larger issue.

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Congress

Republicans embrace hardball moves as shutdown enters Week 3

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Republicans are ratcheting up pressure on Democrats on multiple fronts as the government shutdown enters a third workweek, hoping the hardball moves can finally force a reckoning as U.S. troops face a first-ever missed paycheck.

The GOP fear is that if the military pay deadline passes without action, there will be little to stop the shutdown from continuing for several more weeks at least. Some Republicans have privately warned the White House that taking unilateral action to pay servicemembers would deprive the party of a key lever to make Democrats feel overwhelming consequences for their refusal to act on a House-passed spending bill.

As Washington inched closer to the Wednesday pay date, Republicans on both ends of Pennsylvania Avenue sprang into action: At the White House, budget director Russ Vought announced “substantial” layoffs Friday, finally making good on two weeks of threats.

On Capitol Hill, Senate Republicans said they would no longer allow Democrats to keep calling up their own stopgap spending bill funding the government through the end of October, forcing votes only on the GOP-led alternative. Speaker Mike Johnson is continuing to keep the House out of session this week, and he argues Democrats will bear the consequences of federal workers and troops missing pay.

“It’s a compelling reason to open the damn government,” said Sen. Kevin Cramer (R-N.D.), adding that “the troop deadline is the issue — if anything becomes an inflection point, it’s that.”

The GOP effort to force Democrats to heel comes as talks between the top four congressional leaders remain virtually nonexistent. And there’s no sign that rank-and-file Senate Democrats — just five of whom could quickly end the shutdown — are ready to flip ahead of another scheduled vote on the House-passed stopgap Tuesday night.

Rather than military pay, Democrats are looking at another day they believe will be the ultimate pressure point: the Nov. 1 launch of open enrollment for Affordable Care Act insurance plans. The party has sought to make the pending expiration of premium tax credits a central issue in the standoff, demanding Republicans cut a deal to extend them.

“The closer to Nov. 1, a lot of these elected officials are going to start hearing from their constituents,” said Sen. Ruben Gallego (D-Ariz.) when asked what he thinks will break the impasse.

The fear that the shutdown is pitting the unstoppable force of Democratic anger at President Donald Trump versus the immovable object of GOP resolve not to flinch has not yet generated any substantive bipartisan negotiations.

While Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries believe the only way out of the shutdown is for their GOP counterparts and Trump to talk to them, Republicans are making it clear that they don’t see the point right now and are counting on rank-and-file Democrats to pressure their own party brass.

“I think Leader Schumer has checked out,” Senate Majority Leader John Thune told reporters Friday, adding that Republicans were looking for “bold, courageous Democrats with a backbone.”

In addition to the military pay deadline, lawmakers are keeping a close eye on federal aviation as another potential area that could force Congress into a detente. Thune mentioned the shutdown’s impacts on air travel, saying it was one way senators “might start to feel that a little bit personally.” Sen. Dick Durbin, the No. 2 Senate Democrat, separately noted last week how air traffic controllers were a driving factor in the last shutdown.

But if the Trump administration thought Friday’s firings of several thousand federal workers would break the impasse, it instead appears to have only stiffened Hill Democrats’ spines to keep the shutdown going.

“We will not be threatened and intimidated by the likes of Russ Vought,” purple-district Rep. Mike Levin (D-Calif.) told reporters Friday.

Jeffries is calling House Democrats back to Washington for a Tuesday evening caucus meeting, and Democratic lawmakers are expected to take part in more public appearances this week even as the House stays out of session. He and Schumer have largely managed to keep their caucuses unified on the demand for a bipartisan negotiation — even though there are already clear signs of fissures between the two Democratic leaders over what would be an acceptable end to the shutdown.

“The American people want it, they are seeing how devastating this is, and they are putting a lot of pressure on their Republican congressmen and senators,” Schumer said when asked why he believes Republicans will change their minds on health care, insisting that GOP senators were “feeling the heat.”

Democrats are also trying to drive a wedge between GOP leaders and the White House. Schumer has pointed to Johnson, who is wary of extending the insurance subsidies, as the real roadblock. And Durbin, asked about Thune, noted he had known and worked with the genial South Dakotan for years but “he is at the mercy of a president who is mercurial.”

Republican leaders, however, have shown no signs they will back down from their view that any deal on extending the expiring tax credits can’t be forged while the government is closed down. Instead, they are trying to peel off another five Senate Democrats by dangling an offer to talk once the shutdown is over.

“There are some Democrats who I think are reasonable enough to know that this is not a sustainable position for them,” Thune said.

The bipartisan talks among the Senate rank-and-file are ongoing but have so far failed to bear fruit. Republican leaders floated an offer to potentially hold a vote on extending the subsidies, but Democrats involved in the talks said the details were too fuzzy to agree. Sen. Susan Collins (R-Maine) is separately floating a “six-point plan” to Democrats, which would involve a similar commitment on health care plus moving full-year government funding bills.

Even though the group hasn’t yet come up with a deal, aides believe the rapid launching of trial balloons late last week was a good sign. Eventually, they reckon, one of them will take flight and get Congress out of the shutdown.

But the other risk, Republicans are starting to warn, is that the standoff could go on for so long they might need to extend the window for reaching a broader deal on federal spending and the insurance subsidies.

The House-approved bill expires on Nov. 21, just before Thanksgiving. Now some in the GOP are floating dates just before Christmas, and top party leaders are discussing that possibility. Democrats, meanwhile, want a shorter window for action — before the Nov. 1 open enrollment date.

Sen. Markwayne Mullin, the Oklahoma Republican whom White House officials have tapped to coordinate informal talks with Democrats, said he has floated the later, pre-Christmas deadline in hopes of breaking something loose.

“You start with A, B, C, and you probably end up at D,” Mullin said. “And I think right now we’re probably somewhere around B.”

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