HEALTH CARE VOTES: The Senate is set to vote on competing health care proposals today, with the issue poised to be a major topic on the campaign trail heading into the new year.
Neither partisan proposal set for a vote Thursday is expected to pass, leaving open the potential for higher health care costs for millions of Americans come January.
Members of both parties have signaled the issue will be a key talking point heading into next year's midterm elections.
The vote on the Democratic proposal from Senate Minority Leader Chuck Schumer (D-N.Y.) has been coming for weeks. The enhanced tax credits under the Affordable Care Act that are set to expire at the end of the month were the central issue leading to the record 43-day government shutdown that ended last month.
Senate Majority Leader John Thune (R-S.D.) agreed to allow Democrats to bring a vote on extending the subsidies to the floor as part of a deal to reopen the government.
But that didn't guarantee the extension would pass, and Schumer’s proposal to extend the subsidies by three years seems destined to fail.
Thune hadn’t originally planned to put forward a Republican alternative to Democrats’ proposal but faced rising pressure from within his own conference from moderates and those up for reelection next year who wanted something to vote on alongside the Democratic bill.
The GOP proposal would replace the subsidies with health savings accounts that would receive federal contributions to pay out-of-pocket expenses. But that’s equally unlikely to receive the 60 votes necessary to advance.
Moderates, particularly in the House, have sought to reach a bipartisan compromise with a shorter extension of the subsidies and some reforms. The Hill’s Mike Lillis reports a growing number of centrist Democrats are working with Republicans on bipartisan bills to extend the subsidies by one or two years.
But without the support of House Republican leadership, which unveiled their own proposal Wednesday for a vote next week, the chances of a compromise getting through seem low.
Moderate and vulnerable House Republicans are launching a long-shot revolt against their leaders to try to force a vote on extending the subsidies, The Hill’s Emily Brooks and Nathaniel Weixel report.
Democrats have signaled the health debate will be a top campaign trail topic next year. Some have suggested Democrats would consider another shutdown when current government funding runs out at the end of January if no progress on health care costs have been made by then.
▪ CNN: Battleground Republicans, hard-liners clash over subsidies.
▪ Politico: Subsidies extension bill attains 16 GOP co-sponsors.
HOUSE PASSES DEFENSE BILL: The House easily passed the annual defense policy bill, sending the $900 billion measure to the Senate.
The chamber approved the National Defense Authorization Act in a bipartisan vote of 312-112, with 94 Democrats and 18 Republicans opposed. The legislation would increase pay for service members, provide some additional aid to Ukraine, restrict U.S. investment in China and fully repeal sanctions on Syria, among other measures.
The must-pass bill overcame an obstacle during a procedural vote as Speaker Mike Johnson (R-La.) moved to persuade a few GOP holdouts to back it to allow the measure to receive a final vote.
Opponents took issue with certain provisions included –– or excluded –– from the bill, but it had enough bipartisan support to comfortably pass. The Senate is expected to act on it ahead of the end-of-year deadline.
Rep. Marjorie Taylor Greene (R-Ga.), who was one of the initial holdouts, said she made a deal with GOP leadership to vote to advance the legislation in exchange for a vote on her bill to ban gender-affirming care for minors next week.
▪ The Hill: Greene cuts deal for NDAA vote.
▪ The Hill: Conservatives frustrated over defense bill compromises.
FED INTEREST RATE CUT: The Federal Reserve on Wednesday cut interest rates a third time this year in a divisive decision that sets up Trump’s announcement of his pick for a new chair of the central bank.
The panel of Fed officials responsible for setting monetary policy voted to drop the baseline interest rate by a quarter point to a range of 3.5 to 3.75 percent. The decision was made after an unusually divisive 9-3 vote.
Two members called for no cut at all, while one member, Stephen Miran, called for a larger half-point cut.
That division forms the backdrop for Trump's announcement of his choice for the next Fed chief. Chair Jerome Powell’s term ends in May, and Trump is expected to name a new pick in the coming days or weeks.
One of the likely candidates is National Economic Council Director Kevin Hassett, a close Trump ally. Hassett told Fox News on Wednesday he believes the Fed has been behind in getting interest rates down.
▪ Politico: Fed signals it’s likely to pause rate cuts.
TRUMP AFFORDABILITY CONCERNS: Republican lawmakers signaled they’re displeased with the president’s messaging on affordability, saying he needs to shift his strategy to win over the public.
The Hill’s Alexander Bolton reports GOP members of Congress said they’re happy Trump traveled to Pennsylvania to talk about his economic record but want the White House to do more to show it is working hard to lower costs for Americans.
Trump touted his economic accomplishments during his speech Tuesday, particularly key provisions from his One Big Beautiful Bill Act. But he also meandered from topic to topic in an address that resembled a campaign-style speech, dismissing the idea that affordability is a vulnerability for him and slamming his opponents in harsh terms.
The president has repeatedly branded the term “affordability” as a “hoax” used by Democrats to attack him. But Republicans said Trump needs to understand the problem facing the GOP on the economy.
Recent polling has shown just more than a third of voters approve of Trump’s handling of the economy and inflation.
▪ The Hill: Dems grow bullish on midterms after latest wins.
FEMA REFORMS: A group of administration officials are set to announce reforms to the Federal Emergency Management Agency (FEMA) on Thursday, building on Trump’s criticisms of the department.
The FEMA Review Council is expected to announce and publicly vote on its recommendations but stop short of the president’s earlier calls to abolish the agency entirely, The Hill’s Rachel Frazin reports.
The council, jointly led by Homeland Security Secretary Kristi Noem and Defense Secretary Pete Hegseth, will oversee the meeting that will be available to the public online.
The administration has accused FEMA of being bloated and inefficient. But Trump and Noem have backed off from their calls to eliminate it, instead shifting their rhetoric toward reforming it and providing less money to states.
The report will be available for public comment after its release.
▪ The Hill: Trump denies frustration with Noem, Hegseth.
TRUMP'S FULL PRESS: Trump reupped his threat to back primary challengers to Indiana state lawmakers who don't back his call for redistricting as the state Senate is poised to vote Thursday on a new congressional map.
The map, which would eliminate the two congressional districts currently represented by Democrats, is due for a vote from the state's upper chamber after passing in the state House last week. But whether supporters have enough votes to ultimately advance the map is unclear as several GOP legislators have come out against the redistricting effort.
"Anybody that votes against Redistricting, and the SUCCESS of the Republican Party in D.C., will be, I am sure, met with a MAGA Primary in the Spring," Trump said in a post on Truth Social on Wednesday.
