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The next shutdown threat is around the corner

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The longest shutdown in U.S. history is ending. Yet Congress’ most onerous government funding work remains unfinished — setting up a potential repeat early next year.

The bipartisan deal to end the funding lapse includes a long-term agreement on just three of the dozen bills lawmakers need to finish each year to keep cash flowing to federal programs. And those three measures are some of the easiest to rally around — including money for veterans programs, food aid, assistance for farmers and the operations of Congress itself.

Together, they represent only about 10 percent of the roughly $1.8 trillion Congress doles out each year to federal agencies. Under the deal, everything else is funded on a temporary basis through Jan. 30 at levels first set by Congress in March 2024, when Joe Biden was president.

That leaves behind major open decisions about the vast majority of discretionary dollars — including for the military and public health programs — along with the stickiest policy issues. It doesn’t help that House and Senate leaders still haven’t agreed on an overall total for fiscal 2026 spending, amid GOP divisions over how deeply to cut.

House Majority Leader Steve Scalise acknowledged this month that the hardest part of the funding negotiations is ahead after President Donald Trump signs the current deal to end the shutdown.

“We’ve got to just find a resolution to get the lights back on,” Scalise said. “But the real negotiation is going to be: Can we get an agreement on how to properly fund the government with individual appropriations bills, packages of appropriations bills?”

If lawmakers don’t figure it all out by the new January deadline, Congress risks another partial shutdown or running most of the federal government on what are essentially two-year-old budgets. Some Democrats are already hinting they are willing to shut down the government again without a deal on Affordable Care Act insurance subsidies that expire at the end of this year.

Compounding the challenge are fears that partisan strife during the six-week shutdown will only complicate the already-grueling task of striking a cross-party compromise.

“If we’re going to function again, we’ve got to be able to trust each other,” senior appropriator Sen. Jeanne Shaheen (D-N.H.) told reporters this week, after helping broker the deal to end the shutdown.

The three-bill deal appears to have done little to repair the breach. One of Congress’ top four appropriators, Rep. Rosa DeLauro (D-Conn.), objected to how final negotiations played out over the weekend to close out the funding package.

“The entire House was marginalized in this process,” she said Tuesday night during a Rules Committee meeting.

DeLauro accused Senate Republicans of “abruptly” stopping talks in the middle of negotiations, making the bills public before she signed off and secretly adding controversial language without consulting House lawmakers.

In the Senate, leaders have committed to quickly advancing more funding measures. Majority Leader John Thune said senators would be “off to the races” on a second package of spending measures when the chamber gavels back in on Tuesday.

Up to five bills are under consideration for inclusion in that package, covering funding for the military and the departments of Education, Commerce, Labor, Health and Human Services, Justice, Transportation, Interior and Housing and Urban Development.

Getting that done will be hard enough. All 100 senators would have to consent to quickly assemble the bills on the floor, likely followed by weeks of debate before a vote on passage. Then top Senate appropriators would need to strike a compromise with their House counterparts.

But the remaining spending bills will be even tougher. Four are so divisive that Senate appropriators didn’t even approve them in committee this summer. Lawmakers in both parties agree it is likely that agencies covered under that slate — among them the departments of Energy, Homeland Security, State and Treasury, including the IRS — will eventually be funded through a stopgap that spans through next September.

Democrats warn that any partisan demands from Trump or hard-liners in the House could deadlock the effort to reach agreements on the nine bills left.

“If they want to add poison pills, obviously the whole thing will fall apart,” Sen. Chris Van Hollen (D-Md.), a senior appropriator, said in a brief interview.

But Democrats are also motivated to strike bipartisan deals in light of Trump and White House budget director Russ Vought’s moves this year to shift, freeze and cancel billions of dollars Congress already approved.

Senators have been careful to be more explicit in the new trio of funding bills about how the Trump administration must spend the money.

“Obviously, those are not the bills I would have written,” the Senate’s top Democratic appropriator, Washington Sen. Patty Murray, said in a floor speech this week. But those bills, she added, are “immeasurably better than Trump and Vought holding the pen.”

“We have a lot of work ahead, and I know we can get there — passing full-year funding bills to ensure Congress, not Trump or Russ Vought, decides how taxpayer dollars are spent,” she continued.

A couple of the remaining bills, however, are subject to much more profound disputes. An intraparty disagreement over funding levels between Senate Appropriations Chair Susan Collins (R-Maine) and Sen. John Kennedy (R-La.), for instance, has left the energy bill in limbo.

“I know that is a new experience for everybody on the committee,” Kennedy said this week. “But I’m not backing down.”

And then there’s the DHS measure, which hasn’t been unveiled, let alone advanced through committee amid a deep partisan dispute over curbing Trump’s immigration agenda.

Connecticut Sen. Chris Murphy, the top Democrat on the panel that funds DHS, said he wants “real constraints” to prevent what he calls the Trump administration’s “clearly illegal” transfers of funding to support border enforcement and mass deportations.

“It’s going to be really hard to get a bipartisan long-term budget,” Murphy said, pointing to $600 million the administration is now using for detaining immigrants despite Congress explicitly approving it for “non-detention” efforts.

Sen. Katie Britt of Alabama, who has clashed with Murphy as his GOP counterpart on the panel, acknowledged appropriators have “a lot of hard work in front of us” when asked this week about the challenge of advancing the next tranche of spending bills.

“I don’t think anyone is naive,” she said.

Meredith Lee Hill contributed to this report.

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Congress

Trump seems to wave the white flag on his US attorneys gambit

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For months, President Donald Trump has used unconventional tactics to install loyalists as top federal prosecutors across the country, and battled challenges to their authority. Now, he appears to be conceding defeat.

The Trump administration has signaled in recent days that it may refocus its efforts on trying to eliminate a Senate procedural tool used to block U.S. attorney nominees, rather than continuing to challenge the disqualifications in court. The move comes after New Jersey U.S. Attorney Alina Habba resigned from her post following a court ruling upholding her disqualification along with a handful of other U.S. attorneys who have been stripped of their positions by federal judges.

On Friday, Delaware U.S. Attorney Julianne Murray also left her post, citing the Habba ruling.

The administration’s tactics with U.S. attorneys — bypassing the Senate or sidestepping federal judges to keep unvetted prosecutors in place — are a crucial component of Trump’s effort to deploy the Justice Department against his perceived enemies. He has relied on loyalist U.S. attorneys to pursue what critics call baldly political investigations and prosecutions, including those against New York Attorney General Letitia James and former FBI Director James Comey.

On Thursday, Trump called the so-called “blue slip” process, in which home-state senators can veto judicial or U.S. attorney nominees, a “scam.” It’s his latest attack after Trump has spent months pressuring Senate Republicans to review the practice.

“‘Blue Slips’ are making it impossible to get great Republican Judges and U.S. Attorneys approved to serve in any state where there is even a single Democrat Senator,” Trump wrote in a social media post. “So unfair to Republicans, and not Constitutional.” He directed Senate Majority Leader John Thune “to get something done, ideally the termination of Blue Slips.”

Thune quickly rejected that call, and Senate Judiciary Chair Chuck Grassley has indicated no interest in scrapping the practice. Grassley also blamed the administration for failing to advance more U.S. attorney nominees, saying he has been “hamstrung waiting for background investigations and other paperwork from the administration.”

Asked for comment, a White House spokesperson referred to Trump’s public statements.

Earlier in the week, Trump appeared to acknowledge that the court rulings disqualifying his U.S. attorneys will ultimately force them out of their offices, even though many have remained there following the rulings.

Trump-installed federal prosecutors in the Los Angeles area, Nevada and in the Eastern District of Virginia, for example, have continued working in those offices despite being deemed disqualified. Trump, however, seemed to predict that may not continue.

“We have about seven U.S. attorneys who are not going to be able to keep their jobs much longer because of the blue slip,” Trump told reporters Monday.

Next stop: SCOTUS?

Carl Tobias, a law professor at the University of Richmond, said the administration appears now to have only two options: continue to try to install temporary U.S. attorneys, only to repeatedly have those choices disqualified by courts, or attempt the traditional process of Senate confirmation.

Tobias said he suspects the administration doesn’t want the U.S. attorney gambit to reach the Supreme Court. “I think the last thing they want is to have the Supreme Court say no, right? Because then the game is over.”

That way, he said, “they can continue to do what they’ve been doing, and that is avoiding advice and consent, which is in the Constitution, which they’ve done in more than half the districts, and continue to play games with the system.”

But other legal experts said it wasn’t clear how the Supreme Court might rule. Nina Mendelson, a professor at the University of Michigan Law School and an expert on acting officials, said she could envision the court leaning either way.

“If [the administration] does appeal, the Supreme Court may, on the one hand, be interested in preserving the Senate’s constitutional function of advice and consent and thus narrowly interpret the President’s authority to appoint acting US Attorneys,” she wrote in an email. “On the other hand, the Supreme Court has, in a series of cases, expressed its concern for presidential control and flexibility, which might prompt it to more generously interpret the President’s power.”

Though the administration can appeal the rulings disqualifying the prosecutors, it hasn’t in two key instances. In the Habba case, the Justice Department has said publicly that it will pursue an appeal, but asked the 3rd Circuit Court of Appeals for an extension to decide how it will proceed. New Jersey’s Democratic senators, Cory Booker and Andy Kim, have urged the White House to work with them to select Habba’s replacement.

In the case involving Lindsey Halligan in the Eastern District of Virginia, Attorney General Pam Bondi said in late November that it would pursue an “immediate”appeal — but it hasn’t.

Instead, it kept Halligan in place and attempted, but twice failed, to re-indict James. On Thursday, in a sign the White House may be adopting a more traditional approach to installing U.S. attorneys, the administration began seeking Senate confirmation for Halligan by submitting her questionnaire to the Judiciary Committee.

A spokesperson for the committee, however, noted that Halligan doesn’t have blue slips from Virginia’s senators, and “nominees without blue slips don’t have the votes to advance out of committee or get confirmed on the Senate floor.”

The administration is appealing disqualification rulings in the Los Angeles area and Nevada. In the Northern District of New York, a federal judge appears poised to disqualifyJohn Sarcone III, the Trump-aligned U.S. attorney whose office is pursuing a separate investigation of James.

Despite Trump’s griping about having his choices blocked, he is on pace to match the Biden administration for the number of U.S. attorneys confirmed during its first year. To date, Trump has seen 13 U.S. attorneys confirmed by the Senate, up from just two in September, and 18 more are expected to be confirmed next week, bringing the total to 31.

“ATTN WH; SEND MORE NOMS,” Grassley wrote on social media on Thursday.

Legal experts said the uptick in Senate-confirmed top federal prosecutors is a welcome development, even if they aren’t in some of the highest-impact districts.

“That’s promising for the system,” Tobias said.

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Inside Republicans’ new health bill

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House Republican leaders plan to take a vote next week on conservative-friendly health policies they’ve pursued for years. It’s the latest GOP counter to Democrats’ push to extend expiring Obamacare subsidies.

Here is what’s in the bill, the text of which was released Friday.

CHOICE accounts
Oklahoma GOP Rep. Kevin Hern’s CHOICE legislation would allow employers to offer workers tax-advantaged funds to pay for individual health insurance, in lieu of offering a traditional group plan. It would also offer tax incentives for employers who adopt the arrangements.

Both Republicans and Democrats like the concept because it promotes individual choice in health coverage while also encouraging Obamacare sign-ups.

Funding cost-sharing reductions
When Obamacare was first implemented in 2014, the federal government paid insurers directly to offset cost-sharing reductions, or discounts on deductibles that insurers must offer to people making between 100 and 250 percent of the federal poverty level.

In response to a lawsuit filed by congressional Republicans, a federal judge in 2016 ruled the government’s payments were illegal because the funding wasn’t explicitly appropriated by Congress. The Obama administration appealed, but the first Trump administration dropped the case and stopped the payments.

Insurers are still required to offer the cost-sharing reductions, they just no longer get reimbursed by the federal government.

To make up for the loss of federal dollars, insurers substantially increased silver premiums, a process known as “silver loading.” That’s driven up the amount of federal premium subsidies the government pays insurers, because the subsidy amounts are tied to the second-lowest-cost silver plan in the marketplace.

Republicans now want to put an end to that practice and start funding the cost-sharing reductions again, which is expected to lower premiums for silver plans, thus lowering the amount Obamacare enrollees receive in premium subsidies, regardless of what type of plan they’re enrolled in.

Association health plans
Association health plans enable several small businesses to band together to get health insurance. The framework includes a bill from Education and Workforce Chair Tim Walberg (R-Mich.) that would permit self-employed people to buy an association health plan.

Democrats oppose the idea. In addition to not guaranteeing essential benefits, the plans can distort the insurance market by drawing away healthy, young people, according to a statement from Virginia Rep. Bobby Scott, the top Democrat on the Education and Workforce Committee.

Stop-loss policy
The Self-Insurance Protection Act from Rep. Bob Onder (R-Mo.) would expand access for employers to “stop-loss” policies that enable them to protect against catastrophic health costs from just a few employees.

The bill would ensure that such policies are not classified as traditional health insurance by the federal government. But it has generated pushback from Democrats because it can also restrict states from regulating them.
Pharmacy benefit managers
The bill aims to overhaul how pharmacy benefit managers operate. Those are companies that negotiate drug prices on behalf of insurers and large employers. Pharmaceutical companies and lawmakers have long blamed them for high drug prices.

A push to change the rules governing the PBMs fell apart last year after Trump adviser Elon Musk tanked year-end legislation, but there continues to be overwhelming bipartisan interest in advancing changes that shed light on the PBMs’ business practices.

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Comer threatens the Clintons with contempt for refusing to be deposed in Epstein probe

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House Oversight Committee Chair James Comer has threatened to pursue contempt charges against former President Bill Clinton and former Secretary of State Hillary Clinton if they do not sit for depositions in Congress’ probe of the Jeffrey Epstein investigation.

His warning Friday came after the committee released new photos from the estate of the late convicted sex offender, including a signed photo depicting the former president smiling alongside Epstein and Ghislaine Maxwell, who is serving 20 years in prison for her role in his child sex trafficking operation.

Comer excoriated the Clintons in a statement for apparently refusing to participate in the investigation. The House Oversight Committee subpoenaed the Clintons in August, and has requested they sit for depositions next week.

“It has been more than four months since Bill and Hillary Clinton were subpoenaed to sit for depositions related to our investigation into Jeffrey Epstein and Ghislaine Maxwell’s horrific crimes. Throughout that time, the former President and former Secretary of State have delayed, obstructed, and largely ignored the Committee staff’s efforts to schedule their testimony,” Comer said.

He said the House Oversight Committee will seek to hold both Clintons in contempt of Congress if they do not appear for depositions or reschedule in the coming weeks. Comer scheduled Bill Clinton’s deposition for Wednesday and Hillary Clinton’s deposition for Thursday.

“If the Clintons fail to appear for their depositions next week or schedule a date for early January, the Oversight Committee will begin contempt of Congress proceedings to hold them accountable,” said the statement.

Bill Clinton’s ties to Epstein have been publicly known for years. His association included traveling on Epstein’s private plane after he left office. A spokesperson for the former president has said he cut off ties with Epstein prior to his 2019 arrest and was unaware of Epstein’s alleged crimes.

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