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Obamacare ‘auto-enrollees’ are key target as Republicans formulate tax-credit extension plan

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As Republicans formulate a plan to potentially extend key health insurance subsidies that are at the center of the government shutdown fight, House Energy and Commerce Chair Brett Guthrie warned in an interview Tuesday that any extension would “absolutely” need to include a crackdown on so-called “phantom” Obamacare enrollees.

The move is sure to spark a clash with Democrats, who successfully challenged similar provisions from Guthrie’s committees when they were included in the GOP megabill that passed over the summer. But now Republicans have more leverage as Democrats push for the continuation of tax credits that are set to expire Dec. 31.

“If there’s going to be an extension of those tax credits, the program integrity stuff … absolutely needs to be in place,” Guthrie said.

He was referencing a suite of Republican policies that would put new curbs on reenrollment for the enhanced insurance subsidies that are at the core of Democrats’ shutdown demands. Republicans and influential conservative health lobbyists complain the status quo leads to waste, fraud and abuse.

“Once you sign up, you’re on it forever,” Guthrie said.

Democrats argue those complaints aren’t grounded in reality, and the GOP push could set off a larger fight over how Americans enrolled in the program. Many Democrats, especially progressives, are worried about adding new barriers to access coverage, which they argue would disproportionately hit low-income Americans.

When Republicans tried to insert new curbs in their party-line megabill, Senate Democrats successfully challenged the provisions with the chamber’s parliamentarian.

Now House and Senate GOP leaders are making a big push for a crackdown on auto-enrollment as they begin talks among themselves and with White House officials about a possible subsidy extension and other conservative health care policy initiatives.

Senate Majority Leader John Thune in particular frequently references phantom enrollment as one problem Republicans want to tackle. At least some Democrats are open to negotiating on the topic, and there have been quiet, informal conversations in the Senate about that piece specifically.

“I understand what their issue is,” Sen. Mark Kelly (D-Ariz.) said in an interview Thursday. “And if they would work with us and have a real negotiation on how we fix the premiums, I think that is something that we could address.”

Kelly confirmed he’s talked to “several” Republican colleagues about the policy, adding, “I think they have some points.” The other “other side” of the argument, he said, is that “folks that don’t have a lot of means, when you put barriers in front of them, they tend to drop their health insurance.”

Robert King contributed to this report.

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‘Many families are struggling’

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Rep. Lisa McClain of Michigan offered a rare acknowledgment from a GOP leader Tuesday that the U.S. economy might not be in tip-top condition. McClain, the Republican Conference chair, said at a news conference that “even with bigger [tax] refunds, many families are struggling right now, and I get it.”

That’s a departure from the message President Donald Trump sent at a event in Las Vegas last week, where he said “everything’s doing really well” and played down the impact of higher energy prices since he ordered military strikes on Iran.

“But we also owe it to the American people to be honest about how we got here, to make sure we don’t ever go back again,” McClain, the No. 4 party leader added, saying Americans are “digging out of a hole” from former President Joe Biden’s administration.

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Capitol agenda: Trump-Powell clash hijacks Warsh hearing

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A bitter spat is set to dominate Kevin Warsh’s confirmation hearing Tuesday morning.

It’s not the economic outlook or bank regulation. The real focus for Senate Banking members vetting Warsh to be the next Federal Reserve chair will be President Donald Trump, his yearslong campaign to oust Jerome Powell and whether his DOJ will drop a Fed probe that threatens to derail Warsh’s confirmation indefinitely.

“The president’s current nominee will be ultimately confirmed,” Sen. John Kennedy said Monday. “In what decade that happens, I’m not sure.”

Sen. Thom Tillis, who is single-handedly holding up Warsh until the DOJ matter is tossed, appears to have no further questions for him. Tillis has said Warsh is a good pick.

“I’m not going to spend much time talking to Kevin,” the retiring North Carolina Republican said Monday. “I’m going to start talking about what a bogus investigation Powell is subject to.”

Warsh plans to be somewhat explicit about where he’d try to insulate himself from Trump’s wishes and where he wouldn’t.

According to prepared testimony, Warsh will say that the Fed should be “strictly independent” when it comes to interest rates. But that deference would not apply in other areas, including bank regulation and the “stewardship of public monies.”

He’ll indirectly downplay Trump’s influence and argue that the Fed’s autonomy is not “particularly threatened” when elected officials weigh in on rates. He’ll also reassure markets that he’s still committed to keeping inflation under control.

Democrats, who are planning to focus on Warsh’s large and somewhat opaque financial holdings, will likely be unmoved. So in the end, it will probably come down to how soon Trump is willing to drop his campaign against Powell and unlock Tillis’ vote.

“We’re still trying to work through it,” Tillis said Monday.

What else we’re watching:

DHS funding: Senate Budget Chair Lindsey Graham is expected to release the text of a budget resolution that would direct the Judiciary and Homeland Security Committees to draft long-term funding legislation for immigration enforcement.

Expulsion looms for SCM: The House could expel Rep. Sheila Cherfilus-McCormick as early as Wednesday, after House Ethics meets Tuesday afternoon to decide her punishment for a range of violations.

Victoria Guida, Sam Sutton, Jasper Goodman, Jordain Carney, Meredith Lee Hill and Hailey Fuchs contributed to this report.

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This is how Democrats say Oversight Republicans are trying to squash the Epstein investigation

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Members of both parties have for months been hijacking House Oversight Committee business to call votes on subpoenas for high-profile figures in the Jeffrey Epstein investigation — and Democrats say chair James Comer has quietly instituted a new strategy to contain the practice.

The Kentucky Republican’s workaround, they allege, is to hold “roundtables” on various issues within the panel’s jurisdiction rather than hearings. Roundtables are more informal and don’t permit members to offer motions to subpoena witnesses during unrelated committee business, as is allowed during hearings.

Over the past year, some GOP members have joined with Democrats to take advantage of the panel’s subpoena rules. In July, they voted on a surprise motion to release the full Epstein files when top congressional Republicans were dragging their feet. Lawmakers also compelled now-former Attorney General Pam Bondi to testify and were prepared to haul in Commerce Secretary Howard Lutnick, too, before he said he would appear before the committee voluntarily.

This trend is outlined in a new memo prepared by Oversight Democratic staff, obtained by Blue Light News, which claims that by moving to roundtables, Republicans “are avoiding the only forum where Democrats can force votes, demand documents, and hold the majority accountable.”

“We’ve heard from committee members, both Republicans and Democrats, that they are frustrated,” Rep. Robert Garcia, the top Democrat on the committee, said in an interview Monday. “We have important investigative work, and they want to do this right as we are in the middle of this single, largest government cover-up in the modern history of the Congress. And they want to neuter the Oversight Committee. Give me a break.”

A spokesperson for Oversight Republicans, when reached for comment, did not address a question about whether the uptick in roundtables was intended to prevent subpoena votes. The spokesperson said the panel “continues to hold many hearings” and will host a markup on fraud prevention legislation next week.

“Roundtables provide opportunities to have more substantive and direct conversations with ordinary Americans about issues facing communities across the U.S.,” the spokesperson said.

But the members’ subpoena free-for-all over the past nine months has undoubtedly created a complicated political dynamic for Comer. He has become the de facto leader of the congressional Epstein probe, forcing him to balance calls for transparency with the political fallout of Trump’s onetime relationship with the late, convicted sex offender.

Republicans have noticed the connection between the spike in subpoenas and the subsequent increase in roundtables in lieu of hearings.

Rep. Glenn Grothman (R-Wis.), during a March subcommittee roundtable on mental health issues, at one point said, “It’s no secret why we are not doing a formal hearing today. We’d like this hearing to be solely focused on the issue before you, and there is some concern that — both parties are guilty of this — that they make motions in the middle of the hearing and try to bring up unrelated topics.”

Republicans have also gone on subpoena sprees of their own, most notably by forcing the February depositions of Bill and Hillary Clinton.

Rep. Anna Paulina Luna (R-Fla.) suggested she wasn’t happy about the new status quo.

While stopping short of criticizing roundtables directly, she said in an interview, “I am a fan of committees that like to do the motions to subpoena.”

The last full-committee hearing convened by House Oversight was in March, on fraud in Minnesota. At that hearing, Republican Rep. Nancy Mace of South Carolina forced a vote to subpoena Bondi for her handling of the federal Epstein investigation. Five Republicans joined all Democrats present in voting for the subpoena motion, and Bondi’s recent ouster isn’t quelling calls for her to appear before the panel under oath.

Since that time, first lady Melania Trump delivered a public statement denying she was ever victimized by Epstein and urging Congress to hold hearings with true victims — an entreaty that could resonate with Mace and others who are bought into the subpoena exercise, though Comer has indicated he plans on having such hearings.

In the meantime, Oversight subcommittees have held five roundtables this year alone on topics such as artificial intelligence and the Internal Revenue Service. The full committee is scheduled to convene a sixth roundtable Tuesday morning addressing “lawfare against American agriculture.”

That’s compared to the two subcommittee roundtables listed for all of 2025; Comer hosted no full committee roundtables since becoming chair in 2023, the panel’s website shows.

Several Oversight Republicans said in interviews they appreciate the opportunity to examine policy areas without the partisan mudslinging and subpoena distractions that Oversight has become known for this term.

“When you’re really trying to get to the bottom of something, it’s a much more conducive way of doing it,” said Rep. Eric Burlison (R-Mo.).

Rep. Clay Higgins (R-La.) argued during a recent committee hearing on the misuse of federal funds in Minnesota that the subpoena-happy approach taken by his colleagues is undermining the seriousness of the panel’s work.

“Listen to your Uncle Clay, America — you don’t just normally start out with a subpoena introduced as a vote by a member,” Higgins said. “I object to this process that is false and not reflective of the serious investigative work that the Oversight committee performs day in and day out.”

“Very well said,” Comer replied.

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