Congress
Old headaches will plague Mike Johnson in the new year
Congress is back for the new year. But Speaker Mike Johnson isn’t exactly getting a fresh start in 2026.
The House returns from the holiday recess to confront old issues that continue to bedevil Johnson — from politically perilous battle over health care and the ongoing release of the Jeffrey Epstein files to a messy intra-GOP fight over lawmakers’ stock trading and another looming government shutdown cliff.
The speaker is working to refocus Republicans, seeking to rally members around initiatives aimed at reducing housing prices and efforts to hammer Democrats over public-benefits fraud in Minnesota and other states. President Donald Trump’s decision to depose Venezuelan leader Nicolas Maduro by force has also given the GOP a new rallying point amid doubts about Trump’s plan to indefinitely “run” the South American country.
But Johnson will find it hard to escape internally divisive clashes as the GOP feels pressure to address the rising cost of living and otherwise firm up its standing ahead of the November midterms.
He will immediately confront a growing battle within his ranks this week over how to tackle high health care costs after Republicans allowed enhanced Obamacare tax credits to expire at the end of 2025.
Democrats plan to move as soon as Wednesday to force a floor vote on a three-year straight extension of the lapsed subsidies, according to three people granted anonymity to discuss internal planning. That comes after four House Republicans mounted a mini-mutiny against Johnson last month by signing a discharge petition backed by Minority Leader Hakeem Jeffries.
While this three-year extension could pass the House by Thursday, the bill is set to die in the Senate, where Majority Leader John Thune has indicated he has no plans to move it forward after a similar measure failed to garner the necessary 60 votes in a test vote last month. But a group of moderate senators continue to discuss a compromise proposal, and the rebellious House Republicans are hoping consensus legislation will eventually come back across the Capitol for final action.
The prospects for a bipartisan deal are dim, however, with Trump continuing to slam the Obamacare tax credits as wasteful while pushing Republicans to instead send money directly to taxpayers via health savings accounts. That’s in addition to the internal GOP battle on Capitol Hill over whether to pursue a party-line health care bill this year that could include sending checks to Americans to offset high health care costs.
Johnson is projecting confidence going into 2026, writing in a recent Wall Street Journal op-ed that Republicans have “laid the groundwork for an extraordinary new year — from containing the border crisis and stabilizing inflation to securing historic tax, trade and peace deals.”
“The best is yet to come,” he wrote, predicting that Americans would “experience the tangible results of common-sense governance” and reward the GOP at the ballot box.
But that isn’t likely to keep internal rivalries in check. On Venezuela, for instance, Johnson will have to grapple with a pro-intervention Florida delegation while other elements of the conference could be more skeptical of Trump’s threats of long-term military engagement.
Another headache from inside Johnson’s own conference is coming from hard-liners such as Reps. Chip Roy of Texas and Anna Paulina Luna of Florida, who are demanding a vote on legislation to ban congressional stock trading.
Johnson and House Administration Chair Bryan Steil (R-Wis.) are seeking to head off threats of a discharge petition that would force a vote on that proposal by drafting their own framework for cracking down on insider trading. They plan to move it out of Steil’s panel and onto the floor in the coming weeks.
But the GOP leadership-backed bill would, as POLITICO first reported, still allow lawmakers to hold stocks they already own — a concession that might pass muster with Roy and Luna but is stoking others’ ire. Democrats are already raising alarms over the plan they say falls short of a full ban on congressional stock trading.
An even more explosive issue — the Epstein files — threatens to continue dogging House GOP leaders as well, as the Justice Department is under increasing criticism across party lines for its slow and incomplete release of materials related to the late convicted sex offender.
While Congress required DOJ to make its Epstein case files fully public last month, department officials say millions of pages of records continue to be reviewed. And critics say the records that have been released have been subject to improper redactions and other irregularities.
The issue could come to a head in the coming weeks, with House Judiciary Republicans looking to schedule a routine oversight hearing with Attorney General Pam Bondi that is now expected to focus heavily on the administration’s handling of the Epstein case.
“They are blatantly ignoring the law,” Rep. Thomas Massie (R-Ky.), who helped lead the effort to release the files and sits on the Judiciary Committee, said in an interview.
He and Rep. Ro Khanna (D-Calif.), who co-sponsored the legislation compelling the release of the files, have said they are preparing to push for a rare “inherent contempt” vote against Bondi that could include fines and other sanctions for DOJ’s alleged noncompliance.
If there’s any encouraging news for Johnson heading into 2026, it’s on the appropriations front.
With only a handful of legislative days left before the Jan. 30 deadline to avoid a shutdown — and with many Republicans worried about the potential for another short-term punt — the top four House and Senate appropriators have been making quiet progress on a three-bill funding package as appetites fade for allowing the government to shutter yet again.
Talks around a full-fiscal-year “minibus” that would include the Interior, Energy-Water and Commerce-Justice-Science appropriations bills are close to being finalized, three other people granted anonymity to discuss internal deliberations said. GOP leaders are hoping to put the package on the House floor Thursday if a deal can be reached.
In the meantime, House GOP leaders are navigating internal politics around a major bipartisan housing package the Financial Services Committee approved last month. While it remains unclear whether the House and Senate can reconcile competing housing plans, Johnson is pushing forward after Trump’s top pollster told a closed-door briefing of House Republicans last month they should focus more on housing affordability issues ahead of the midterms.
This week, House GOP leaders are planning to hold votes on a bill from Rep. Erin Houchin (R-Ind.) that would cut red tape and relax energy efficiency standards for manufactured housing as well as a measure from Rep. Russell Fry (R-S.C.) that would codify Trump’s effort to roll back a regulation instituted under former President Joe Biden limiting water flow for shower nozzles.
But even Republican leaders’ unity-building proposals — such as highlighting the fraud convictions in Minnesota — could end up sparking fights.
A growing number of conservatives want Trump to reinstate Elon Musk in his prior role as efficiency czar to probe reports of Medicaid fraud and other related projects. But other Republicans, especially key moderates, are cool to the idea.
“We have fraud experts in the government that can do this,” Rep. Don Bacon (R-Neb.) said in an interview. “They should be able to do their jobs.”
Congress
RFK Jr. will remake panel that determines which preventative services insurers must cover
Health Secretary Robert F. Kennedy Jr. said Thursday he’s overhauling a group of external experts who decide what medical services are preventive and must be covered fully by insurers under the Affordable Care Act.
“That committee has been lackadaisical and negligent for 20 years,” Kennedy said of the U.S. Preventive Services Task Force, speaking before the House Ways and Means Committee.
Made of 16 experts, the task force is working on draft recommendations on autism screening in young children; breast cancer risk assessment and drugs to reduce risk; and counseling on early allergen introduction to prevent infant food allergies. Autism and food allergies in children are among Kennedy’s priorities for improving children’s health.
But the Department of Health and Human Services canceled three of the four meetings the group was scheduled to hold since President Donald Trump took office last year.
The Wall Street Journal reported last summer that Kennedy was planning to remove all 16 task force members because he considered them too “woke.”
“We’re now bringing new members on who have a clear mission,” Kennedy told lawmakers Thursday, adding that the task force will have more frequent meetings and transparency.
The Supreme Court ruled in June that the health secretary has the power to fire and appoint members of the task force and to reject its recommendations for which screenings or drugs should be offered to certain populations.
But some public health advocates worry that Kennedy would remake the U.S. Preventive Services Task Force to align it with his views, many of which go against mainstream science, the same way he overhauled the Advisory Committee on Immunization Practices that advises the Centers for Disease Control and Prevention, appointing members who shared his skepticism of vaccine safety.
A federal judge in Boston ruled in March that Kennedy’s appointments to the vaccine panel had been made inappropriately and were invalid.
Congress
Johnson tries again on spy powers vote amid GOP rebellion
Speaker Mike Johnson will try again Thursday to push the House to extend an imperiled spy powers law after GOP resistance forced him to punt a vote Wednesday.
Johnson is scheduling a procedural vote for 3:15 p.m. and final passage around 5 p.m. He told POLITICO late Wednesday that he believed negotiators needed “a few more hours” to wrap up discussions on a potential compromise with conservatives concerned about U.S. citizens being caught up in government surveillance.
Talks between White House officials and House GOP hard-liners are ongoing, and there’s no deal yet, according to five people granted anonymity to discuss negotiations. Those people said an agreement by Friday seems more likely at this point and it’s possible Johnson has to delay the vote again ahead of the Monday expiration.
Johnson is racing to close out the internal GOP battle as President Donald Trump demands an 18-month extension of Section 702 of the Foreign Intelligence Surveillance Act.
The speaker needs to send the FISA extension to the Senate before the Monday deadline, leaving barely any time for the Senate to act and threatening a rare weekend session.
The House ultraconservatives opposed to the clean spy powers extension are trying to hash out an amendment involving warrant requirements, drawing on language from a measure by Louisiana Republican Rep. Clay Higgins.
White House officials, mindful of the ongoing Department of Homeland Security shutdown, are also trying to finalize an agreement so they can tackle a party-line immigration enforcement bill and end the funding lapse.
Congress
Capitol agenda: GOP losing patience over Warsh fight
Republicans who want Kevin Warsh confirmed as the country’s next top economic official are growing more exasperated at a Trump administration probe standing in the way.
For months, outgoing GOP Sen. Thom Tillis has said he’d blockade President Donald Trump’s pick until the Justice Department drops an investigation into current Fed Chair Jerome Powell. Now a growing chorus of Republicans, eager to install Warsh as Powell’s term as chair comes to a conclusion next month, are joining the call for the administration to end the probe.
Senate Majority Leader John Thune said Wednesday he believed the administration should wrap up its investigation, and acknowledged that Warsh is basically stuck until then.
“I think at some point they’re going to have to deal with the committee, and they’re going to have to deal with Tillis,” Thune said of the administration.
Tillis holds a deciding vote on the Senate Banking panel, which scheduled a hearing on Warsh’s confirmation Tuesday. His GOP colleagues on the committee haven’t committed to blocking Warsh with him, but some are taking his side in calling for an end to the investigation into whether Powell lied to Congress during testimony last year about cost overruns at the Fed’s Washington headquarters.
Sen. Mike Rounds, who has previously declined to weigh in on the probe, told reporters Wednesday he wants to see it dropped so that Warsh can be confirmed.
“The president wants a different Fed chair. And we want to help him get there,” Rounds said. “But that requires right now that they resolve the issue surrounding this prosecution that is still taking place.”
Another Banking Republican granted anonymity to speak candidly predicted the administration and Tillis would ultimately find an off-ramp but told Jordain Carney the DOJ “should drop the investigation.”
And over in the House — which holds no sway over nominations — Financial Services Chair French Hill said Wednesday “it’s time for the administration to draw that investigation to a conclusion,” as “we want to make sure that we’ve got a new confirmed head of the Fed that we can work with in conducting oversight.”
Trump, meanwhile, is digging in and ratcheting up his conflict with Powell. He threatened Wednesday to fire Powell if he stays on as chair once his term ends — a growing possibility amid the Warsh stalemate. That follows a visit that officials from U.S. Attorney Jeanine Pirro’s office made to the Fed’s headquarters this week.
Asked about the prospect of getting Tillis’ vote to help secure his Fed nominee, Trump said on Fox Business that the North Carolinian is “no longer a senator,” given that Tillis is retiring at the end of his term.
But Tillis is standing his ground, Jordain and Jasper Goodman report, and he’s leaving the door open to exercising his power even more.
Tillis also sits on Senate Judiciary, where he will have a vote in the event the panel considers a successor to outgoing Attorney General Pam Bondi. He’s already warned he will block any attorney general nominee who has dismissed the attack on the Capitol on Jan. 6, 2021. And he’s not completely ruling out making the Fed probe a litmus test for AG nominees if it continues.
“If we keep letting this go on, I have to consider other options for really amplifying my concern,” Tillis said of his Fed fight.
What else we’re watching:
— Johnson tries again on FISA: Speaker Mike Johnson is expecting to put a procedural vote on the House floor Thursday to renew key government spy powers after his attempt Wednesday failed. GOP leaders canceled a planned vote Wednesday amid disagreements over whether to allow members to amend the legislation reauthorizing Section 702 of the Foreign Intelligence Surveillance Act.
— RFK Jr. hearing palooza kicks off: Health and Human Services Secretary Robert F. Kennedy Jr. Thursday starts a stretch of seven congressional hearings in less than a week. The series serves as the first high-profile public forum to test the White House’s theory that Kennedy will help Republicans in the midterms.
— Selig likely to talk prediction markets: House Agriculture lawmakers Thursday are all but certain to press CFTC Chair Michael Selig on the surge in popularity — and controversy — surrounding prediction markets. Selig has emerged as the markets’ most prominent backer in Washington, but he’s also planning to make one thing clear to the lawmakers up front: He’s still the markets’ top cop.
Jordain Carney, Jasper Goodman, Mia McCarthy, Declan Harty, Carmen Paun, Simon Levien, Robert King and Cheyenne Haslett contributed to this report.
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