Congress
What Republicans could offer Democrats on health care after the shutdown
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. Murry, 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.
Congress
The House Ethics Committee wants to do better
Three lawmakers accused of serious ethical lapses have been forced to resign in just over a week, prompting even members of the House Ethics Committee to question whether the panel is up to the task of policing its own.
The committee is at a moment of reckoning as it seeks to prove itself ready, willing and able to root out bad behavior in its ranks. It’s spent the past year and a half rebuilding its reputation after internal disagreements about how to handle an ethics report over ex-Rep. Matt Gaetz spilled into the public and threatened the bipartisan panel’s credibility.
Now, amid the high-profile resignations of Rep. Eric Swalwell (D-Calif.), Tony Gonzales (R-Texas) and Sheila Cherfilus-McCormick (D-Fla.), members who sit on the highly secretive committee are opening up — eager to share their perspectives, acknowledge their limitations and defend their work.
“The reality is we are still too slow, and I believe that we should be moving faster. I’ve expressed some of my recommendations on how we can do that to staff,” said Rep. Suhas Subramanyam (D-Va.), who joined the Ethics Committee this Congress, in an interview. “I want people to take the Ethics Committee more seriously.”
In extended interviews Monday and Tuesday, Ethics Chair Michael Guest (R-Miss.) said his panel is hamstrung by the House’s institutional bureaucracy.
“I’ve been asked, you know, could the Ethics Committee, if there were additional resources provided to the committee, would that help us move cases through quickly? And of course, the answer to that is yes,” Guest said. “But you know, it has to be up to leadership. It has to be up to the Speaker and the Minority Leader as to the size of the staff that they would like to see the Ethics Committee command.”
Their comments come amid questions around how Gonzales and Swalwell were able to serve in office for so long unchecked: Both were accused of engaging in sexual misconduct with former staffers, with Swalwell accused of rape. Each stepped down before the Ethics Committee ever had a chance to render findings of fault and enact punishments.
Cherfilus-McCormick also resigned moments before the Ethics Committee was due to meet Tuesday afternoon to consider a punishment for a determination that she illicitly funneled millions to support her campaign, which could have culminated in a recommendation of expulsion.
Now attention is turning to Rep. Cory Mills (R-Fla.), who stands accused of numerous violations, including illicitly engaging in government contracts while in federal office and threatening to release a former girlfriend’s nude videos. He has maintained he has no plans to resign as his case before the Ethics Committee has languished without resolution.
In November, the House Ethics panel quietly requested the Office of Congressional Conduct — the quasi-independent office that fields and investigates complaints against members and staff from the public — to drop its probe into Mills, according to a person with knowledge of the ethics process who was granted anonymity to describe the confidential process. That message was transmitted to the OCC the same day the House voted to effectively table a resolution offered by Rep. Nancy Mace (R-S.C.) to censure Mills for various alleged improprieties.
The OCC was established in 2008 by then-Speaker Nancy Pelosi (D-Calif.), and proponents say it provides a necessary, largely independent set of eyes — including on ongoing investigations. Critics view the OCC as an untrustworthy political group; it sat defanged for months this Congress before Speaker Mike Johnson brought a perfunctory measure to the House floor that set up its ability to launch investigations by appointing its board.
Guest declined to discuss details of the Mills case but did not deny that such a request had been made, saying it was standard practice for Ethics to take the reins on a probe from OCC “once an investigative subcommittee is established.”
He conceded the Ethics Committee at times may operate slower than some would like, but its process was deliberate and thorough. “If members want this to be a rush committee where we have two weeks to come up with a report and return that report back to the body, then I’m not the right person to be serving in that room.”
He did say he hoped to discuss with Johnson how to improve the panel’s operations. One continued challenge for members is the loss of jurisdiction once a lawmaker resigns from Congress, which has historically meant the committee stops its investigation and does not release a report of its findings. Guest proposed a new policy where a report could be made public upon a lawmaker’s resignation, meaning bad actors could not always leave office in order to hide from revelations about their misdeeds.
Rep. Mark DeSaulnier of California, the top Democrat on the Ethics Committee, said the committee could better handle cases of sexual misconduct and has spoken to Democratic leadership about modernizing the panel.
“I think on sexual harassment, [the] thing that occurs to me is that there should be one place to go that’s clear to report, that has enough staff, and they’re been very well trained in the subject area, so that people feel like there’s a place they can go and be safe, protected,” he said. “And then there’s a due process that responds in a way that is deliberative, but under the urgency of circumstances.”
This is an area where the Ethics Committee has, in recent weeks, found itself struggling to respond to public pressure. When the House was poised in March to vote on a measure brought by Mace that would have compelled the committee to make information on sexual harassment claims public, Guest and DeSaulnier said in a statement it would have a chilling effect for victims. The resolution was ultimately tabled.
On Monday, the panel released a statement reaffirming its commitment to taking allegations of sexual misconduct seriously — and a list of publicly disclosed sexual misconduct investigations dating back to 1976. Many of those cases were closed without resolution because the member under scrutiny resigned from office before the committee could conclude the case.
One lawmaker who has served on the Ethics Committee, who requested anonymity to describe the panel’s private operations, argued that disclosure of sexual misconduct cases can harm potential victims who may not want their cases brought before the panel in the first place.
This explanation is largely falling on deaf ears from members who want more transparency and accountability, though, with Rep. Anna Paulina Luna (R-Fla.) calling the Monday release of previously disclosed sexual misconduct allegations against House members an inadequate “cleanup job.”
Rep. Glenn Ivey (D-Md.), a member of the Ethics Committee and a former federal prosecutor, suggested that improving the panel’s internal systems for handling sexual harassment claims might be a lost cause.
“I think the ugly truth is there’s no process that handles this well that I’ve seen, whether it’s state courts, federal courts, internal corporate investigations, Congress or the Senate,” he said.
Congress
Senate launches budget debate
Senate Republicans opened debate Tuesday on a fiscal blueprint meant to pave the way for passage of a party-line immigration enforcement funding bill later this year.
The Senate voted 52-46 to advance the budget resolution, which Budget Chair Lindsey Graham (R-S.C.) unveiled earlier Tuesday. It instructs House and Senate committees to write legislation expected to deliver about $70 billion to Immigration and Customs Enforcement and other agencies.
The Senate is expected to give the measure final approval this week before leaving town. The chamber could move to a marathon voting session, known as a vote-a-rama, as soon as Wednesday, though plenty of Republicans are betting that it won’t start until Thursday.
Congress
Cherfilus-McCormick resigns amid ethics investigation
Rep. Sheila Cherfilus-McCormick (D-Fla.) has resigned in the face of corruption charges at home and calls for her ouster in Washington, she announced in a statement on Tuesday.
News broke minutes before the House Ethics Committee was about to meet for a public hearing Tuesday afternoon to determine a punishment for the third-term Democrat, who was charged with stealing $5 million in Covid relief funds.
Cherfilus-McCormick said in a statement the Ethics proceedings did not constitute a “fair process” and that she was “choos[ing] to step aside” rather than “play these political games.”
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