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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

Thanksgiving travel looms as shutdown risk, GOP leaders say

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The Thanksgiving travel season could be put at risk by an extended government shutdown, Republican leaders warned Tuesday on Capitol Hill, ratcheting up warnings about flight cancellations and airport chaos amid the ongoing standoff with congressional Democrats.

Leaders in both parties are starting to look to the Thanksgiving holiday as a looming pressure point after President Donald Trump acted over the weekend to ensure active-duty military paychecks arrive on time Wednesday by shifting Pentagon funds. Many congressional leaders saw that deadline as a forcing mechanism. Now it appears ready to pass without major political consequences — raising the possibility the shutdown could drag on for weeks more.

“As TSA agents and air traffic controllers show up without pay, Democrats brag they won’t budge until planes fall out of the sky,” said Rep. Lisa McClain (R-Mich.), the GOP conference chair. “Really? Seriously?”

The current shutdown, which began Oct. 1, would have to blow past the record of 35 days set in 2019 to threaten Thanksgiving, which falls on Nov. 27. Air traffic controllers and airport security personnel are working during the shutdown but going unpaid, and personnel have reported sick at higher rates or otherwise not shown up to work under similar circumstances in the past.

House Majority Leader Steve Scalise and other leaders said Tuesday those impacts had already started and would escalate as time goes on and on.

“Airports will be flooded with flight cancellations and delays amid the busiest time time to travel all year, and the list goes on and on,” House Majority Whip Tom Emmer said alongside Speaker Mike Johnson at a news conference Tuesday, calling on Democrats to “reopen our government.”

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Four GOP ideas for an Obamacare subsidies compromise

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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. Murray, 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

White House to continue RIFs as shutdown drags on

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The White House is pledging to fire more federal workers, the next salvo in President Donald Trump’s push to pressure Democrats to sign onto the GOP’s continuing resolution and end the government shutdown.

“OMB is making every preparation to batten down the hatches and ride out the Democrats’ intransigence,” the White House Office of Management and Budget wrote Tuesday on X. “Pay the troops, pay law enforcement, continue the RIFs, and wait.”

Trump and Office of Management and Budget Director Russ Vought launched their long-threatened shutdown-related layoffs last Friday, with Republicans calling the reductions in force financially prudent and faulting Democrats for forcing the administration’s hand. But the day before, Trump said at a Cabinet meeting that his administration would only cut “Democrat programs” declaring that his own party’s priorities wouldn’t be affected by White House bean counters.

“That’s the way it works,” he said. “They wanted to do this so we will give them a little taste of their own medicine.”

The White House has also used the shutdown to cut billions in climate and infrastructure funding earmarked for states that voted for former Vice President Kamala Harris in last year’s election.

Most Senate Democrats have withheld supporting the GOP continuing resolution to bring Republicans to the negotiating table over extending premium tax credits within the Affordable Care Act, with open enrollment set to tee off on Nov. 1. But Republican leadership in both the White House and Congress is signaling the burden is on the holdout Democrats to act.

“We’re barreling toward one of the longest shutdowns in American history unless Democrats drop their partisan demands and passed a clean, no strings attached budget to reopen the government and pay our federal workers,” Speaker Mike Johnson said in a press briefing Monday.

The messaging battle is up for grabs. American voters are more likely to fault the GOP for the shutdown, but they still trust Republicans over Democrats on the economy, according to recent polling.

The White House and OMB both did not immediately respond to requests for comment from Blue Light News.

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