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Tax Day is the GOP’s focus as Congress returns to war, shutdown and other challenges

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Republicans return to Washington this week eager to promote the pocketbook benefits of their nine-month-old megabill ahead of Tax Day. But the fallout from the war in the Middle East threatens to complicate that election-year message.

Explaining away rising gas prices and spiking inflation is not where GOP lawmakers wanted to be seven months before the midterms, but that is the challenge they face as a cease fire with Iran proves tenuous and there is scant evidence global energy flows will return to normal anytime soon. That’s not to mention the host of internal policy battles further distracting GOP lawmakers as they return from a two-week recess.

Still, they are seeking to rally this around the glue that has held their fractious coalition together — tax cuts — with Trump going on the road this week to tout the “big, beautiful bill” and House Republicans planning a Wednesday all-member news conference, according to two people granted anonymity to discuss the plans ahead of an announcement.

“My constituents are saving thousands of dollars and they know it,” Rep. Nicole Malliotakis (R-N.Y.) said in an interview. “Republicans can and should take credit because the alternative would’ve been massive tax hikes under the Democrats had they won the 2024 election.”

She played down fears that the Iran conflict could weigh on the GOP’s tax-cut messaging, calling them “separate issues.” But GOP lawmakers have acknowledged concern that rising gas prices could make it harder for their party to claim it has made life more affordable for Americans.

Republicans, Malliotakis said, “need to ensure that the spike is only temporary and that we get those prices back down as soon as possible so we have all three: low taxes, affordable gas and a safer nation.”

The threat of rising prices was further underscored by new federal data published Friday showing inflation at its highest level in two years, with energy costs accounting for the bulk of the spike, as well as the collapse of peace talks with Iran over the weekend aimed at restoring oil flows through the Persian Gulf.

Directly tackling the issue, however, is not at the top of the congressional agenda at the moment. The Senate is set to restart debate on a sweeping elections bill most Republican members don’t think can pass, and the House is set to vote on a handful of measures rolling back environment regulations as well as an aviation safety bill and the renaming of several post offices.

House GOP leaders hope the deregulatory effort will help assuage some rank-and-file Republicans who want to do more to address cost-of-living issues ahead of the midterms. But they also have to face a pile of problems that have only grown more pressing in the two weeks since they broke for recess.

Those include a rapidly approaching deadline for the reauthorization of key surveillance powers and the ongoing furor over the Jeffrey Epstein files.

The former issue is caught in an internal GOP dispute between Trump’s wishes and those of conservative hard-liners, while the latter was turbocharged last week after first lady Melania Trump called on Congress to “uncover the truth” and hold a public hearing focused on survivors of the late convicted sex trafficker’s crimes.

Leaders also have to figure out how to deal with bipartisan demands to expel several members accused of personal misconduct — including Rep. Eric Swalwell (D-Calif.), who is facing sexual assault allegations, and Rep. Tony Gonzales (R-Texas), who admitted to an affair with a staffer who later died by suicide.

The tax cuts, however, are one issue that has proven able to bring the party together — even as members privately fret over whether that talking point will break through with voters.

“It’s all we have to run on,” said a House Republican granted anonymity to speak candidly about the party’s messaging. “Do you see us turning out other big-ticket legislation? This is it.”

The congressional GOP is also growing increasingly entangled with the six-week-old Iran war, which stands to cast a long shadow over the party agenda. Both chambers this week will likely be debating and voting on Democratic-led war powers resolutions. While the tentative cease fire has helped calm Republicans’ nerves, the White House is taking firm steps to ensure GOP members stay loyal.

The White House communications office sent talking points on the cease fire to GOP offices last week, arguing Trump had delivered “Peace Through Strength,” though much of that guidance referred to a possibility of a “broader peace agreement” that appeared kaput by Sunday morning.

“What’s left of the Iranian regime is desperate, dejected, and in denial,” the memo said.

But there were almost immediately sharp questions about how durable the cease fire might be, and the key factor in lowering energy prices — restoring the flow of oil and gas through the strait — remained wholly unsettled into the weekend.

Even some Republicans who backed Trump’s decision to strike are skeptical that a long-term peace agreement is within reach.

“Russia and China will help them rebuild their military,” Rep. Don Bacon of Nebraska said in an interview. “We are safer today because Iran is significantly weakened. But the government is still in place and that means they’ll threaten us in the long term. We bought time.”

House and Senate Republicans also return to a toxic internal fight over how to end the nearly two-month-old Department of Homeland Security shutdown. House members left town after rejecting a Senate-approved deal funding most of the department, after Speaker Mike Johnson publicly trashed it. He then reversed course, infuriating members who hated the Senate’s two-track plan which leaves immigration enforcement funding for the party-line reconciliation process.

Despite endorsing the plan, Johnson does not intend to move forward on the Senate-approved DHS funding bill this week. The House GOP will instead wait until the Senate makes progress on the bill funding the remainder of the department through the partisan budget reconciliation process, according to four people granted anonymity to describe private plans.

But making progress on that bill is rife with complications. Senate Republicans are charging ahead with a plan not to find spending offsets to pay for the cost of the legislation, which would help keep Democrats from forcing tough Senate votes on a wide variety of hot-button issues as part of the reconciliation process.

But that decision will rankle House GOP fiscal hawks who wanted to include a raft of spending cuts and additional policies beyond immigration enforcement funding.

Some GOP leaders are counting on the possibility of yet another reconciliation bill that could happen later in the year incorporating the remaining items on the GOP wish list. Johnson suggested as much on a tense call with House Republicans over the recess.

That promise is not sitting well with scores of House Republicans who say they’re running out of time to notch GOP wins ahead of the midterms. Many want the next party-line bill to include a multitude of policies aimed at addressing affordability issues weighing on voters, while others want to include tens of billions of dollars for the Iran war the White House requested in its budget blueprint last week.

Johnson is also trying to wrangle a so-far intractable problem: how to extend the spy powers law ahead of its April 20 expiration.

He is planning to put a straight extension of the so-called Section 702 program on the floor this week, as the White House is demanding. But discussions continue with GOP hard-liners who want to vote amendments aimed at protecting American citizens from getting swept up in government surveillance — something that could upend Johnson’s plan.

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Congress

Republicans’ faith in Mike Johnson is fading fast

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Speaker Mike Johnson faced down a bruising “hell week” and ultimately pulled several key GOP bills across the line. But it came at a cost.

Republicans say Johnson’s habit of making last-minute, often contradictory promises to keep his tiny majority functioning is starting to catch up with him. Frustrations over his leadership, they say, are at an all-time high.

“I think this guy has divided us with a smile,” said Rep. Max Miller (R-Ohio), a longtime Johnson skeptic who has grown more vocal with his criticism and now says “without question” he will vote against keeping Johnson as top GOP leader in the next Congress.

This week’s chaos came to a head late Wednesday, with multiple members of key Republican factions yelling and swearing at Johnson on the House floor and in closed-door meetings.

Johnson tried to quell a rebellion among conservative hard-liners by privately reneging on an agreement with a group of midwestern Republicans that would have tied legislation allowing year-round sales of an ethanol fuel blend to the must-pass farm bill.

When some of the ethanol provision’s backers ran back to the floor to try to figure out what happened, they were too late. Some later confronted Johnson, who is now promising a future vote on the matter.

“Bullshit,” Rep. Ann Wagner (R-Mo.) yelled at the speaker as he tried to explain what happened later in the day, according to three people who participated in the huddle and spoke on the condition of anonymity.

This week’s floor chaos was just the latest example of Johnson leading crisis by crisis, ultimately pulling off GOP priorities but leaving a trail of disgruntled members and staffers in his wake, according to more than a dozen Republicans interviewed for this story.

It all comes as rank-and-file lawmakers grow increasingly worried about their ability to govern over the coming months and retain their majority in November — and amid quiet conversations about who else might be capable of leading the House GOP. While Johnson successfully managed this week to end the record shutdown of the Department of Homeland Security and fend off the lapse of a key surveillance program, more challenges loom.

A long-term deal to maintain those spy powers remains elusive, the Senate is expected to reject the farm bill House Republicans approved Thursday and members are agitating for yet another party-line reconciliation bill that stands to continue surfacing the GOP’s internal divides.

Johnson told reporters Thursday that complaints about his leadership style amounted to “fake news.”

“No one in this conference can say that I went against my word on anything,” he said. “You had requests and demands on opposite sides of the conference that were literally irreconcilable. If you meet one group’s demands, you can’t meet the other. And so it takes a lot of time to get people to a consensus and an agreement on that.”

“Everybody’s very happy with their work,” Johnson said. “It’s all smiles.”

Wagner hardly appeared thrilled as she recounted Wednesday’s events in an interview Thursday.

“We were promised a vote on this,” she said of the ethanol measure. “We went back to do our work in our offices, and then a deal was cut on the floor. … And once we became aware of it, we needed to extend those discussions.”

The ethanol measure, allowing year-round sales of a fuel blend high in corn-derived alcohol, vexed a coalition of Republicans who saw the measure as harming petroleum and refiner industry interests in their districts as well as ultraconservatives who had ideological objections.

The result of the infighting was that a Wednesday vote on the budget blueprint for a planned immigration enforcement funding bill stayed open for more than five hours as dozens of Republicans withheld their votes until they got a satisfactory response.

To placate them, Johnson ultimately agreed to delay consideration of the farm bill for a time — only to reverse himself again after livid ag-state members demanded a vote on the farm bill before the scheduled weeklong recess, leaving the ethanol issue for later.

That in turn enraged hard-liners like Rep. Chip Roy (R-Texas), who accused Johnson of going back on his word from only a few hours earlier.

In a closed-door meeting just off the House floor Wednesday night, Rep. Mariannette Miller-Meeks (R-Iowa) complained about how farm-state members always vote in line with GOP leadership only to get jilted on their own priorities.

During a separate “family meeting” in Johnson’s office, Rep. Michelle Fischbach (R-Minn.), who sits in a Johnson-appointed slot on the Rules Committee, asked why they should believe the speaker when he promised a future vote on the ethanol issue. Johnson had already promised the group a vote in late February that did not materialize.

Miller, a former White House aide to President Donald Trump, said he ultimately agreed to vote for the budget measure out of his support for Trump and after Homeland Security Secretary Markwayne Mullin personally asked him to. But he said the episode demonstrated why he thinks Johnson is unfit to lead Republicans beyond this Congress.

“It’s pretty debilitating when you’re supposed to follow a guy into battle, and I wouldn’t trust him to get out of a wet paper bag with an M4,” he said.

Johnson was happy to put the 76-day DHS shutdown behind him Thursday, telling reporters that “sometimes it’s an ugly process” but that he has “never broken my word to a single person in this building.”

But the instances of disarray on the floor have piled up in recent months, and not all of them can be attributed solely to the GOP’s tiny majority. Last week, Johnson and other leaders appeared unaware of serious concerns in his conference’s ranks about legislation curbing Endangered Species Act protections. They were forced to postpone consideration of the bill.

The week before that, the House cleared an extension of temporary immigration protections for people from Haiti — the latest instance where a Democratic-led discharge petition had succeeded in commandeering the GOP agenda.

Many Democrats have been happy to watch the internal drama and gloat, mocking the GOP’s disarray and papering over the pains their own caucus experienced when they were in power. But they have insisted the drama of the past few months stands alone.

“First reaction is: ‘Oh, my God, this would never happen under Nancy Pelosi,’” Rep. Don Beyer (D-Va.) said in an interview, harking back to speakers of the past. “In fact, it probably wouldn’t have happened under John Boehner or Paul Ryan or even Kevin McCarthy.”

Johnson has defenders inside the GOP ranks, such as Rep. Mike Lawler (R-N.Y.), who said “he’s doing fine” and “the bills are moving.” He also continued to enjoy the support of the most important Republican — Trump — who has shown no outward sign of dismay with Johnson’s leadership.

“These are complex issues, and sometimes they take more than five minutes to work through,” Lawler said.

Johnson will be tested as soon as lawmakers return from recess. The pro-ethanol Republicans say Johnson pledged to orchestrate a standalone vote on their measure the week of May 12, according to six people involved in the talks. Many Republicans expect it to fail since it will no longer be attached to a must-pass bill.

“Do I believe him? Probably not,” one of the House Republicans involved said about that timeline.

Wagner, when asked whether she had confidence in Johnson and GOP leaders, singled out House Majority Leader Steve Scalise for having “really stood up in the pack” and “gave his word in terms of how we would move forward.”

Even the members who weren’t part of the back-and-forths over ethanol blends or surveillance safeguards or budget priorities this week were dismayed by how it all went down.

Rep. Daniel Webster (R-Fla.), a veteran House member who announced his retirement earlier this week, parked himself on the House floor during part of the meltdown. Asked later what he thought of the interactions, he said, “I just thought we got to get it together.”

“We probably didn’t have it together when we started voting,” he said. “Probably should have waited until we were sure. It’s a lot of wasted time.”

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Anthropic, OpenAI back Warner-Budd workforce data bill

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A bipartisan Senate bill that would create a federal framework to track how artificial intelligence is reshaping the U.S. workforce has won backing from Silicon Valley tech giants including Anthropic, Google, Microsoft and OpenAI.

Sens. Mark Warner (D-Va.) and Ted Budd (R-N.C.) introduced the Workforce Transparency Act on Thursday, which intends to give Washington the real-time information needed to develop policy solutions for economic disruption and job losses associated with the technology.

The legislation would direct the Labor Department to collect and publish anonymized data on AI adoption across the public and private sectors. Data collected would include how workers use the technology and how that usage evolves over time.

The proposal comes as anxiety rises in Washington about the long-term effects of AI on the labor market and as both political parties craft messaging to respond to public concerns about the technology.

It would also establish a voluntary reporting system where companies and agencies can submit AI adoption data, and would then make anonymized versions of the data available to businesses, researchers and agencies.

Microsoft’s Corporate Vice President of U.S. Government Affairs Fred Humphries said the framework is helpful for “understanding AI deployment, productivity gains, and the creation of new jobs.”

“We know AI is beginning to transform work, but we don’t have enough data to understand how,” said Joshua New, director of policy at SeedAI, a nonprofit focused on American AI readiness that’s backing the bill.

The proposal is also supported by Alliance for Secure AI, Business Software Alliance, SCSP Action Program and Erik Brynjolfsson, a senior fellow at the Stanford Institute for Human-Centered AI.

Warner has made this issue a cornerstone of his reelection campaign, launching an ad in December highlighting how the rise in AI adoption is coinciding with steep job losses and an affordability crisis in the U.S.

CLARIFICATION: Updates to clarify Fred Humphries’ job title.

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Trump signs DHS legislation, ending record-breaking shutdown

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President Donald Trump signed bipartisan legislation on Thursday to fund key agencies at the Department of Homeland Security, officially concluding the record-breaking shutdown.

After more than 10 weeks, the president’s signature restores funding to the Coast Guard, TSA, Secret Service, FEMA and the Cybersecurity and Infrastructure Security Agency, along with other sub-agencies that don’t touch immigration enforcement. Congressional Republicans are separately working to enact tens of billions of dollars for Border Patrol and Immigration and Customs Enforcement through a party-line reconciliation package, a process that progressed this week with the adoption of a framework to unlock a special budget authority to bypass the Senate filibuster.

House Republicans pushed past internal divisions as the White House and DHS warned stopgap funds to cover missed paychecks — pulled from the One Big Beautiful Bill — would run out within days. Agencies were bracing for additional furloughs as soon as next week, as DHS staffers were expected to get their final paychecks on May 8, according to an administration official, granted anonymity to share the timing.

While some immigration agencies have yet to be funded, enforcement operations were already paid for under last year’s GOP megabill. ICE and Border Patrol agents never missed a paycheck.

Still, the DHS shutdown dragged on for 76 days, leaving the agency in limbo at a critical moment on a number of fronts — from national security concerns to hurricane preparedness and lingering impacts on U.S. travel. During that time, Secretary Kristi Noem was fired and Sen. Markwayne Mullin confirmed as the new head of the agency, while the lengthy shutdown left staff dejected at a time when the department was trying to regain its footing after months of turmoil.

The agency, which oversees ICE and CBP, has been at the center of the monthslong funding fight on Capitol Hill. In the wake of the Trump administration’s deadly operation in Minneapolis, Democrats stayed united in resisting additional funding for those agencies without additional guardrails placed on immigration enforcement. Democrats ultimately failed to gain significant policy concessions from the Trump administration, and have questioned why the White House needs more funding for immigration agencies when it has billions remaining for border security and deportations from last year’s GOP megalaw.

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