Presented by AARP — The battle over the extension of critical health care subsidies may come to a head this week.

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Friday, October 23 | By Jared Gans

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In today's issue:

▪ Supreme Court hearing case on presidential power

▪ Trump hosts Kennedy Center Honors

▪ Tim Walz under scrutiny

▪ Stalemate on college sports oversight

© The Associated Press | Mariam Zuhaib

Health care fight heads to fever pitch

The battle over the extension of critical health care subsidies may come to a head this week as time is running out before prices are set to spike for millions of Americans.

Senate Democratic Leader Chuck Schumer (N.Y.) plans to force a vote this week on his own proposal for a three-year extension of the Affordable Care Act (ACA) tax credits, which are set to expire at the end of the month. He has said he expects every Democrat to support it.

But the legislation will fail without support from at least 13 Senate Republicans to reach the required 60-vote threshold to advance.

Speaker Mike Johnson (R-La.) is also expected to introduce House GOP leadership’s own health care proposal, with the goal of receiving a vote before the end of the year. The details of the plan aren’t clear, but Republican leaders have signaled it will focus on alternative health care affordability provisions to the subsidies.

GOP leadership has for months been stuck between moderates looking to extend the subsidies in some form and staunch conservatives who want them to end, arguing that the ACA has failed to lower health care costs. That battle is reaching a key moment this week, The Hill’s Mike Lillis and Emily Brooks report.

“We’re going to keep bringing bills to the floor to do those two things, to lower premiums for families and give them options so that they can get what’s best for their families,” House Majority Leader Steve Scalise (R-La.) said. “They don’t have to be forced into a plan that the government tells them they have to be in that’s too expensive for them.”

Republican and Democratic moderates have been working together to try to put forward a plan that would extend the subsidies with some reforms, like establishing an income cap and eliminating plans without premiums.

Rep. Brian Fitzpatrick (R-Pa.) plans to introduce another bipartisan proposal this week that he argues has the best chance of passing.

“I think it’s the most serious attempt out there,” he said.

But that faces opposition from many conservatives who have pushed against the ACA and the subsidies specifically for years, going back to when they were first expanded during the COVID-19 pandemic. Many Republicans also say they would only back a proposal that includes prohibitions on ACA health plans that cover abortions, but none of the bipartisan proposals include language on that.

That led one House Republican to tell The Hill that there is broad recognition within the Republican conference that a bipartisan deal to extend the subsidies is unlikely.

But Fitzpatrick is also prepared to try using a discharge petition to force a vote if the legislation doesn’t proceed to the floor. He said the group hasn’t received commitments from House leadership but is determined to get a vote.

The debate over the subsidies was a centerpiece of the record 43-day government shutdown. Senate Democrats were promised a vote on their extension proposal as part of the deal to reopen the government, but the agreement did not include a promise by the GOP to extend the subsidies.

▪ The Hill: GOP looks to end conservative rebellion in Senate.

3 Things to Know Today

 
  1. Rep. Marjorie Taylor Greene (R-Ga.) doubled down on her criticism of President Trump on CBS’s “60 Minutes” during an interview that aired Sunday, futher highlighting her split with the president after their public falling-out in recent weeks.
  2. A Hamas official said the militant group is ready to discuss “freezing or storing” its weapons as part of the ceasefire with Israel. The comments come as the two sides approach the more complex second phase of their peace agreement.
  3. The text of the annual defense and security package, the National Defense Authorization Act, has been released with a budget $8 billion higher than Trump requested. The package doesn’t appropriate funding but sets the policy for the year ahead.

LEADING THE DAY

© The Associated Press | Alex Brandon

SUPREME COURT RECONSIDERS PRECEDENT: The Supreme Court is set to reevaluate its own 90-year precedent in a case on whether President Trump has the power to fire a member of the Federal Trade Commission (FTC) without cause.

The court will hear arguments Monday on whether Trump can fire FTC Commissioner Rebecca Slaughter, a Democrat who has served on the commission since 2018. Trump tried to fire her from the commission on the grounds that her service was “inconsistent” with the administration’s policies.

But the court’s 1935 ruling in Humphrey’s Executor v. United States protects officers of federal agencies from being fired by the president without cause. The court's ultimate decision will determine whether the precedent will hold, and it could have implications for other federal agencies beyond the FTC, The Hill’s Ella Lee and Zach Schonfeld report.

Trump has fired about a dozen officials other than Slaughter despite federal law protecting them as well, leading some to sue.

Lower courts have mostly ruled against the president, but Trump administration lawyers are hoping the conservative-majority Supreme Court will overrule them.

Some justices have already shown an interest in overturning Humphrey’s Executor.

“The decision in Humphrey’s Executor poses a direct threat to our constitutional structure and, as a result, the liberty of the American people,” Justice Clarence Thomas wrote in a 2020 opinion that was joined by Justice Neil Gorsuch.

Slaughter’s case comes before the high court the month before another case on Trump’s attempt to fire Lisa Cook from the Federal Reserve’s board of governors, citing allegations of mortgage fraud against her. Cook has denied the allegations.

My colleagues Schonfeld and Lee report that the court has so far been more deferential to the Fed’s independence than what is expected to come for other federal agencies. But the arguments there will also be indicative of where the court is leaning in their considerations of the president’s authority over the wide-ranging federal agencies.

▪ The Hill: Court to decide if Trump can restrict birthright citizenship.

▪ CNN: John Roberts, Elena Kagan to battle on executive power.

HEGSETH SEEING CLEARER WATER: Defense Secretary Pete Hegseth may not be out of the woods on the controversy surrounding the multiple strikes on a boat in the Caribbean in September, but his role seems to be in less danger than it was just a week ago.

The Hill’s Niall Stanage reports the key moment came when Navy Adm. Frank Bradley reportedly denied to lawmakers during a briefing Thursday that Hegseth issued an order to “kill everybody” aboard the alleged drug-smuggling vessel sunk on Sept. 2.

The Washington Post reported late last month that Hegseth issued the order verbally, leading Bradley to order a second strike on two survivors who were clinging to the boat’s wreckage, killing them.

But Republican and Democratic members of Congress who were briefed by Bradley both said the admiral clearly pushed back on the idea that he received any such order from Hegseth. That should help give Hegseth some room to go after those who have been critical of him, Stanage writes.

Still, the story isn't going away anytime soon. Critics have called for the public release of the video of the second strike, and one Democrat who saw it said it was “deeply disturbing.”

Sen. Rand Paul (R-Ky.) has called for Hegseth to testify about the incident. But most Republicans haven’t put too much pressure on the Pentagon chief, who still has the backing of the president.

▪ The Hill: Hegseth doesn’t commit to releasing boat strike video.

▪ CNN: Boat sank in double-tap strike was heading to Suriname.

WALZ FACES SCRUTINY: Minnesota Gov. Tim Walz (D) is facing a political firestorm over a growing scandal concerning allegations of fraud in a federally funded nutrition program.

Nearly 60 people have already been convicted of charges connected to schemes to set up companies that billed state agencies for millions of dollars in social services that were never provided, The New York Times reported. The money was stolen from a program designed to keep children fed during the COVID-19 pandemic.

Trump has gone on offense after the Somali American community, as some of those who were allegedly responsible for setting up the companies are Somali. But the situation has also created some difficulties for Walz as he gears up to run for a third term as governor.

The controversy has led even some of Walz’s allies to question whether he should seek another term, The Hill’s Amie Parnes reports.

Critics point out that the widespread fraud was able to happen on Walz's watch. But some some analysts said they don’t believe the controversy is fatal for his political career. Walz has also been seen as a possible 2028 presidential candidate after serving as former Vice President Kamala Harris’s running mate last year.

Walz’s office has emphasized the work he has done to combat fraud, and allies believe Trump’s rising feud with Walz will only help him. But the Republican candidates lining up to challenge him seem ready to go on the attack.

▪ CBS News: What to know about the Minnesota fraud allegations.

 

WHEN & WHERE

  • The president will participate in a roundtable at 2 p.m.
  • The Senate will meet at 3 p.m.
  • The House won’t convene today.
 

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ZOOM IN

© The Associated Press | Jose Luis Magana

PARDON CONTROVERSY: Trump is drawing increasing criticism for his use of the pardon power, which has sometimes appeared to contradict his own administration or focus on those charged or convicted during former President Biden’s term, The Hill’s Brett Samuels reports.

Among the president’s most recent pardons are the ones he used for Democratic Rep. Henry Cuellar (Texas), cryptocurrency firm Binance founder Changpeng Zhao and former Honduran President Juan Orlando Hernández.

Trump claimed he didn’t know Zhao, who was convicted of allowing money laundering, despite Binance’s business ties to Trump's family. And he argued Hernández, who was convicted last year on conspiring with drug traffickers, was detained as part of a “Biden witch hunt.”

The case against Hernández started in Trump’s first term. That pardon has spurred backlash even from members of Trump’s own party, particularly as the president has sought to crack down on drug smuggling with the administration’s repeated boat strikes.

Trump continued his allegations of Biden politically persecuting his opponents in pardoning Cuellar and his wife, Imelda. They had been accused of accepting nearly $600,000 in bribes and laundering the money.

But Trump on Sunday expressed frustration with Cuellar, a conservative Democrat, and denounced his “lack of loyalty” for his decision to run for reelection next year as a Democrat despite the pardon.

“Oh’ well, next time, no more Mr. Nice guy!” Trump said on Truth Social.

▪ The Hill: Cuellar defends running again as a Democrat.

GENDER TEACHING PUSHBACK: Professors are facing the most significant scrutiny in the battle over the teaching of gender and race in college classrooms.

National controversy has sprung up in the case of a student at the University of Oklahoma who accused her instructor of religious discrimination after she received a failing grade for an assignment on a reading about gender norms. The teacher failed Samantha Fulnecky after she mostly cited the Bible in her response rejecting the idea that a person’s gender can fall outside their sex assigned at birth.

The instructor was placed on leave last week.

Meanwhile, the Texas Tech University System also last week released new guidelines saying professors can’t teach that more than two genders exist and added restrictions on how race is discussed.

The Hill’s Lexi Lonas Cochran reports that these developments and others are alarming free speech and higher education advocates who believe the First Amendment rights of professors are in danger.

Experts say the judicial system and advocacy are the best ways to push back on these developments.

▪ The Oklahoman: Another lecturer placed on leave after Fulnecky protest.

ELSEWHERE

© The Associated Press | AJ Mast

COLLEGE SPORTS OVERSIGHT: Lawmakers are divided over whether and to what extent Congress should get involved in regulating the growing business of college sports.

The Hill’s Dominick Mastrangelo reports that a stalemate among members of Congress was highlighted last week by the demise of the SCORE Act, which was designed to regulate the compensation that college student-athletes earn from the use of their name, image and likeness (NIL).

Several hardline House conservatives were opposed to the legislation, helping ensure its defeat.

The debate reached a new high point after former University of Mississippi football coach Lane Kiffin left the school for its conference rival Louisiana State University (LSU), which Kiffin said was partially driven by LSU’s ability to attract more recruits with NIL opportunities.

▪ Fox News: Trump warns college sports is in ‘big trouble.’

▪ ESPN: College football playoff bracket released.

NETFLIX ACQUISITION: Trump raised some doubts about whether his administration would accept Netflix's planned acquisition of Warner Bros., saying the total market share it would consolidate "could be a problem," The Washington Post reported.

Trump told reporters Sunday that he'll be "involved" in the decision on whether to green-light the sale, which would allow Netflix to acquire Warner Bros.'s HBO Max and DC Studios.

"When they have Warner Bros., that share goes up a lot. So, I don't know," Trump said.

He said he met with Netflix CEO Ted Sarandos in the Oval Office last week.

The $83 billion acquisition is expected to close in the third quarter of 2026 if it receives approval from the Trump administration.

OPINION

  • Defend the Federal Reserve — or lose the dollar and the democracy it protects, former New York Reps. Thomas W. Reed II (R) and Max Rose (D) write in The Hill.
  • Beneath Pearl Harbor’s smoke, a hero still awaits recognition, former Rep. Joe DioGuardi (R-N.Y.) writes in The Hill.

THE CLOSER

© The Associated Press | Julia Demaree Nikhinson

And finally … Trump hosted the 48th annual Kennedy Center Honors on Sunday evening, making him the first president to ever host the ceremony.

It came months after he seized control of the center named for former President John F. Kennedy, naming himself as the chair and longtime ally Richard Grenell as acting executive director.

He awarded medals to the recipients of this year’s honors in the Oval Office on Saturday, emphasizing the renovations being done to the center.

This year’s recipients are the members of the rock band KISS, disco singer Gloria Gaynor, country music singer George Strait and actors Sylvester Stallone and Michael Crawford.

Ticket sales have dropped significantly at the center throughout the year after Trump took control and dismissed several board members, arguing the institution had become too “woke.”

The awards ceremony will air on CBS on Dec. 23.

 

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