ReportWire

Tag: enhanced tax credit

  • President Trump signs government funding bill, ending shutdown after a record 43-day disruption

    [ad_1]

    President Donald Trump signed a government funding bill Wednesday night, ending a record 43-day shutdown that caused financial stress for federal workers who went without paychecks, stranded scores of travelers at airports and generated long lines at some food banks.The shutdown magnified partisan divisions in Washington as Trump took unprecedented unilateral actions — including canceling projects and trying to fire federal workers — to pressure Democrats into relenting on their demands.The Republican president blamed the situation on Democrats and suggested voters shouldn’t reward the party during next year’s midterm elections.“So I just want to tell the American people, you should not forget this,” Trump said. “When we come up to midterms and other things, don’t forget what they’ve done to our country.”The signing ceremony came just hours after the House passed the measure on a mostly party-line vote of 222-209. The Senate had already passed the measure Monday.Democrats wanted to extend an enhanced tax credit expiring at the end of the year that lowers the cost of health coverage obtained through Affordable Care Act marketplaces. They refused to go along with a short-term spending bill that did not include that priority. But Republicans said that was a separate policy fight to be held at another time.“We told you 43 days ago from bitter experience that government shutdowns don’t work,” said Rep. Tom Cole, the Republican chairman of the House Appropriations Committee. “They never achieve the objective that you announce. And guess what? You haven’t achieved that objective yet, and you’re not going to.”The frustration and pressures generated by the shutdown were reflected when lawmakers debated the spending measure on the House floor.Republicans said Democrats sought to use the pain generated by the shutdown to prevail in a policy dispute.”They knew it would cause pain and they did it anyway,” House Speaker Mike Johnson said.Democrats said Republicans raced to pass tax breaks earlier this year that they say mostly will benefit the wealthy. But the bill before the House Wednesday “leaves families twisting in the wind with zero guarantee there will ever, ever be a vote to extend tax credits to help everyday people pay for their health care,” said Rep. Jim McGovern, D-Mass.Democratic leader Hakeem Jeffries said Democrats would not give up on the subsidy extension even if the vote did not go their way.”This fight is not over,” Jeffries said. “We’re just getting started.”The House had not been in legislative session since Sept. 19, when it passed a short-term measure to keep the government open when the new budget year began in October. Johnson sent lawmakers home after that vote and put the onus on the Senate to act, saying House Republicans had done their job.What’s in the bill to end the shutdownThe legislation is the result of a deal reached by eight senators who broke ranks with the Democrats after reaching the conclusion that Republicans would not bend on using a government funding to bill to extend the health care tax credits.The compromise funds three annual spending bills and extends the rest of government funding through Jan. 30. Republicans promised to hold a vote by mid-December to extend the health care subsidies, but there is no guarantee of success.The bill includes a reversal of the firing of federal workers by the Trump administration since the shutdown began. It also protects federal workers against further layoffs through January and guarantees they are paid once the shutdown is over. The bill for the Agriculture Department means people who rely on key food assistance programs will see those benefits funded without threat of interruption through the rest of the budget year.The package includes $203.5 million to boost security for lawmakers and an additional $28 million for the security of Supreme Court justices.Democrats also decried language in the bill that would give senators the opportunity to sue when a federal agency or employee searches their electronic records without notifying them, allowing for up to $500,000 in potential damages for each violation.The language seems aimed at helping Republican senators pursue damages if their phone records were analyzed by the FBI as part of an investigation into Trump’s efforts to overturn his 2020 election loss. The provisions drew criticism from Republicans as well. Johnson said he was “very angry about it.””That was dropped in at the last minute, and I did not appreciate that, nor did most of the House members,” Johnson said, promising a vote on the matter as early as next week.The biggest point of contention, though, was the fate of the expiring enhanced tax credit that makes health insurance more affordable through Affordable Care Act marketplaces.”It’s a subsidy on top of a subsidy. Our friends added it during COVID,” Cole said. “COVID is over. They set a date certain that the subsidies would run out. They chose the date.”Rep. Nancy Pelosi, D-Calif., said the enhanced tax credit was designed to give more people access to health care and no Republican voted for it.”All they have done is try to eliminate access to health care in our country. The country is catching on to them,” Pelosi said.Without the enhanced tax credit, premiums on average will more than double for millions of Americans. More than 2 million people would lose health insurance coverage altogether next year, the Congressional Budget Office projected.Health care debate aheadIt’s unclear whether the parties will find any common ground on health care before the December vote in the Senate. Johnson has said he will not commit to bringing it up in his chamber.Some Republicans have said they are open to extending the COVID-19 pandemic-era tax credits as premiums will soar for millions of people, but they also want new limits on who can receive the subsidies. Some argue that the tax dollars for the plans should be routed through individuals rather than go directly to insurance companies.Sen. Susan Collins, R-Maine, chair of the Senate Appropriations Committee, said Monday that she was supportive of extending the tax credits with changes, such as new income caps. Some Democrats have signaled they could be open to that idea.House Democrats expressed great skepticism that the Senate effort would lead to a breakthrough.Rep. Rosa DeLauro of Connecticut, the top Democrat on the House Appropriations Committee, said Republicans have wanted to repeal the health overhaul for the past 15 years. “That’s where they’re trying to go,” she said.When could things return to normal?While the shutdown will end tonight, the return to pre-shutdown status will not be immediate. Air travel is expected to experience lingering impacts, as the transportation secretary noted that the speed of recovery will depend on how quickly air traffic controllers return to work, with many having retired during the shutdown. The FAA administrator stated that air traffic controllers will receive their full back pay within a week, but it remains unclear how quickly other federal workers will be compensated. In previous shutdowns, it took up to eight weeks for some workers to receive back pay.Regarding SNAP benefits, the American Public Human Services Association anticipates that most states will issue full benefits within three days after the shutdown ends, though some states may take about a week due to complications from issuing partial benefits during the shutdown. The Small Business Administration has indicated that once the government reopens, it will immediately begin processing and approving loans for small businesses. ___Associated Press writer Mary Clare Jalonick contributed to this report.

    President Donald Trump signed a government funding bill Wednesday night, ending a record 43-day shutdown that caused financial stress for federal workers who went without paychecks, stranded scores of travelers at airports and generated long lines at some food banks.

    The shutdown magnified partisan divisions in Washington as Trump took unprecedented unilateral actions — including canceling projects and trying to fire federal workers — to pressure Democrats into relenting on their demands.

    The Republican president blamed the situation on Democrats and suggested voters shouldn’t reward the party during next year’s midterm elections.

    “So I just want to tell the American people, you should not forget this,” Trump said. “When we come up to midterms and other things, don’t forget what they’ve done to our country.”

    The signing ceremony came just hours after the House passed the measure on a mostly party-line vote of 222-209. The Senate had already passed the measure Monday.

    Democrats wanted to extend an enhanced tax credit expiring at the end of the year that lowers the cost of health coverage obtained through Affordable Care Act marketplaces. They refused to go along with a short-term spending bill that did not include that priority. But Republicans said that was a separate policy fight to be held at another time.

    “We told you 43 days ago from bitter experience that government shutdowns don’t work,” said Rep. Tom Cole, the Republican chairman of the House Appropriations Committee. “They never achieve the objective that you announce. And guess what? You haven’t achieved that objective yet, and you’re not going to.”

    The frustration and pressures generated by the shutdown were reflected when lawmakers debated the spending measure on the House floor.

    Republicans said Democrats sought to use the pain generated by the shutdown to prevail in a policy dispute.

    “They knew it would cause pain and they did it anyway,” House Speaker Mike Johnson said.

    Democrats said Republicans raced to pass tax breaks earlier this year that they say mostly will benefit the wealthy. But the bill before the House Wednesday “leaves families twisting in the wind with zero guarantee there will ever, ever be a vote to extend tax credits to help everyday people pay for their health care,” said Rep. Jim McGovern, D-Mass.

    Democratic leader Hakeem Jeffries said Democrats would not give up on the subsidy extension even if the vote did not go their way.

    “This fight is not over,” Jeffries said. “We’re just getting started.”

    The House had not been in legislative session since Sept. 19, when it passed a short-term measure to keep the government open when the new budget year began in October. Johnson sent lawmakers home after that vote and put the onus on the Senate to act, saying House Republicans had done their job.

    What’s in the bill to end the shutdown

    The legislation is the result of a deal reached by eight senators who broke ranks with the Democrats after reaching the conclusion that Republicans would not bend on using a government funding to bill to extend the health care tax credits.

    The compromise funds three annual spending bills and extends the rest of government funding through Jan. 30. Republicans promised to hold a vote by mid-December to extend the health care subsidies, but there is no guarantee of success.

    The bill includes a reversal of the firing of federal workers by the Trump administration since the shutdown began. It also protects federal workers against further layoffs through January and guarantees they are paid once the shutdown is over. The bill for the Agriculture Department means people who rely on key food assistance programs will see those benefits funded without threat of interruption through the rest of the budget year.

    The package includes $203.5 million to boost security for lawmakers and an additional $28 million for the security of Supreme Court justices.

    Democrats also decried language in the bill that would give senators the opportunity to sue when a federal agency or employee searches their electronic records without notifying them, allowing for up to $500,000 in potential damages for each violation.

    The language seems aimed at helping Republican senators pursue damages if their phone records were analyzed by the FBI as part of an investigation into Trump’s efforts to overturn his 2020 election loss. The provisions drew criticism from Republicans as well. Johnson said he was “very angry about it.”

    “That was dropped in at the last minute, and I did not appreciate that, nor did most of the House members,” Johnson said, promising a vote on the matter as early as next week.

    The biggest point of contention, though, was the fate of the expiring enhanced tax credit that makes health insurance more affordable through Affordable Care Act marketplaces.

    “It’s a subsidy on top of a subsidy. Our friends added it during COVID,” Cole said. “COVID is over. They set a date certain that the subsidies would run out. They chose the date.”

    Rep. Nancy Pelosi, D-Calif., said the enhanced tax credit was designed to give more people access to health care and no Republican voted for it.

    “All they have done is try to eliminate access to health care in our country. The country is catching on to them,” Pelosi said.

    Without the enhanced tax credit, premiums on average will more than double for millions of Americans. More than 2 million people would lose health insurance coverage altogether next year, the Congressional Budget Office projected.

    Health care debate ahead

    It’s unclear whether the parties will find any common ground on health care before the December vote in the Senate. Johnson has said he will not commit to bringing it up in his chamber.

    Some Republicans have said they are open to extending the COVID-19 pandemic-era tax credits as premiums will soar for millions of people, but they also want new limits on who can receive the subsidies. Some argue that the tax dollars for the plans should be routed through individuals rather than go directly to insurance companies.

    Sen. Susan Collins, R-Maine, chair of the Senate Appropriations Committee, said Monday that she was supportive of extending the tax credits with changes, such as new income caps. Some Democrats have signaled they could be open to that idea.

    House Democrats expressed great skepticism that the Senate effort would lead to a breakthrough.

    Rep. Rosa DeLauro of Connecticut, the top Democrat on the House Appropriations Committee, said Republicans have wanted to repeal the health overhaul for the past 15 years. “That’s where they’re trying to go,” she said.

    When could things return to normal?

    While the shutdown will end tonight, the return to pre-shutdown status will not be immediate. Air travel is expected to experience lingering impacts, as the transportation secretary noted that the speed of recovery will depend on how quickly air traffic controllers return to work, with many having retired during the shutdown.

    The FAA administrator stated that air traffic controllers will receive their full back pay within a week, but it remains unclear how quickly other federal workers will be compensated. In previous shutdowns, it took up to eight weeks for some workers to receive back pay.

    Regarding SNAP benefits, the American Public Human Services Association anticipates that most states will issue full benefits within three days after the shutdown ends, though some states may take about a week due to complications from issuing partial benefits during the shutdown.

    The Small Business Administration has indicated that once the government reopens, it will immediately begin processing and approving loans for small businesses.

    ___

    Associated Press writer Mary Clare Jalonick contributed to this report.

    [ad_2]

    Source link

  • A historic shutdown is nearly over. It leaves no winners and much frustration

    [ad_1]

    The longest government shutdown in history could conclude as soon as today, Day 43, with almost no one happy with the final result.Democrats didn’t get the health insurance provisions they demanded added to the spending deal. And Republicans, who control the levers of power in Washington, didn’t escape blame, according to polls and some state and local elections that went poorly for them.The fallout of the shutdown landed on millions of Americans, including federal workers who went without paychecks and airline passengers who had their trips delayed or canceled. An interruption in nutrition assistance programs contributed to long lines at food banks and added emotional distress going into the holiday season.The agreement includes bipartisan bills worked out by the Senate Appropriations Committee to fund parts of government — food aid, veterans programs and the legislative branch, among other things. All other funding would be extended until the end of January, giving lawmakers more than two months to finish additional spending bills.Here’s a look at how the shutdown started and is likely to end.What led to the shutdownDemocrats made several demands to win their support for a short-term funding bill, but the central one was an extension of an enhanced tax credit that lowers the cost of health coverage obtained through Affordable Care Act marketplaces.The tax credit was boosted during the COVID response, again through Joe Biden’s big energy and health care bill, and it’s set to expire at the end of December. Without it, premiums on average will more than double for millions of Americans. More than 2 million people would lose health insurance coverage altogether next year, the Congressional Budget Office projected.“Never have American families faced a situation where their health care costs are set to double — double in the blink of an eye,” said Senate Democratic leader Chuck Schumer, D-N.Y.While Democrats called for negotiations on the matter, Republicans said a funding bill would need to be passed first.“Republicans are ready to sit down with Democrats just as soon as they stop holding the government hostage to their partisan demands,” Senate Majority Leader John Thune, R-S.D., said.Thune eventually promised Democrats a December vote on the tax credit extension to help resolve the standoff, but many Democrats demanded a guaranteed fix, not just a vote that is likely to fail.Thune’s position was much the same as the one Schumer took back in October 2013, when Republicans unsuccessfully sought to roll back parts of the Affordable Care Act in exchange for funding the government. “Open up all of the government, and then we can have a fruitful discussion,” Schumer said then.Democratic leaders under pressureThe first year of President Donald Trump’s second term has seen more than 200,000 federal workers leave their job through firings, forced relocations or the administration’s deferred resignation program, according to the Partnership for Public Service. Whole agencies that don’t align with the administration’s priorities have been dismantled. And billions of dollars previously approved by Congress have been frozen or canceled.Democrats have had to rely on the courts to block some of Trump’s efforts, but they have been unable to do it through legislation. They were also powerless to stop Trump’s big tax cut and immigration crackdown bill that Republicans helped pay for by cutting future spending on safety net programs such as Medicaid and SNAP, formerly known as food stamps.The Democrats’ struggles to blunt the Trump administration’s priorities has prompted calls for the party’s congressional leadership to take a more forceful response.Schumer experienced that firsthand after announcing in March that he would support moving ahead with a funding bill for the 2025 budget year. There was a protest at his office, calls from progressives that he be primaried in 2028 and suggestions that the Democratic Party would soon be looking for new leaders.This time around, Schumer demanded that Republicans negotiate with Democrats to get their votes on a spending bill. The Senate rules, he noted, requires bipartisan support to meet the 60-vote threshold necessary to advance a spending bill.But those negotiations did not occur, at least not with Schumer. Republicans instead worked with a small group of eight Democrats to tee up a short-term bill to fund the government generally at current levels and accused Schumer of catering to the party’s left flank when he refused to go along.“The Senate Democrats are afraid that the radicals in their party will say that they caved,” House Speaker Mike Johnson, R-La., said at one of his many daily press conferences.The blame gameThe political stakes in the shutdown are huge, which is why leaders in both parties have held nearly daily press briefings to shape public opinion.Roughly 6 in 10 Americans say Trump and Republicans in Congress have “a great deal” or “quite a bit” of responsibility for the shutdown, while 54% say the same about Democrats in Congress, according to the poll from The Associated Press-NORC Center for Public Affairs Research.At least three-quarters of Americans believe each deserves at least a “moderate” share of blame, underscoring that no one was successfully evading responsibility.Both parties looked to the Nov. 4 elections in Virginia, New Jersey and elsewhere for signs of how the shutdown was influencing public opinion. Democrats took comfort in their overwhelming successes. Trump called it a “big factor, negative” for Republicans. But it did not change the GOP’s stance on negotiating. Instead, Trump ramped up calls for Republicans to end the filibuster in the Senate, which would pretty much eliminate the need for the majority party to ever negotiate with the minority.Damage of the shutdownThe Congressional Budget Office says that the negative impact on the economy will be mostly recovered once the shutdown ends, but not entirely. It estimated the permanent economic loss at about $11 billion for a six-week shutdown.Beyond the numbers, though, the shutdown created a cascade of troubles for many Americans. Federal workers missed paychecks, causing financial and emotional stress. Travelers had their flights delayed and at times canceled. People who rely on safety net programs such as the Supplemental Nutrition Assistance Program saw their benefits stopped, and Americans throughout the country lined up for meals at food banks.”This dysfunction is damaging enough to our constituents and economy here at home, but it also sends a dangerous message to the watching world,” said Sen. Jerry Moran, R-Kan. “It demonstrates to our allies that we are an unreliable partner, and it signals to our adversaries that we can’t work together to meet even the most fundamental responsibilities of Congress.”

    The longest government shutdown in history could conclude as soon as today, Day 43, with almost no one happy with the final result.

    Democrats didn’t get the health insurance provisions they demanded added to the spending deal. And Republicans, who control the levers of power in Washington, didn’t escape blame, according to polls and some state and local elections that went poorly for them.

    The fallout of the shutdown landed on millions of Americans, including federal workers who went without paychecks and airline passengers who had their trips delayed or canceled. An interruption in nutrition assistance programs contributed to long lines at food banks and added emotional distress going into the holiday season.

    The agreement includes bipartisan bills worked out by the Senate Appropriations Committee to fund parts of government — food aid, veterans programs and the legislative branch, among other things. All other funding would be extended until the end of January, giving lawmakers more than two months to finish additional spending bills.

    Here’s a look at how the shutdown started and is likely to end.

    What led to the shutdown

    Democrats made several demands to win their support for a short-term funding bill, but the central one was an extension of an enhanced tax credit that lowers the cost of health coverage obtained through Affordable Care Act marketplaces.

    The tax credit was boosted during the COVID response, again through Joe Biden’s big energy and health care bill, and it’s set to expire at the end of December. Without it, premiums on average will more than double for millions of Americans. More than 2 million people would lose health insurance coverage altogether next year, the Congressional Budget Office projected.

    “Never have American families faced a situation where their health care costs are set to double — double in the blink of an eye,” said Senate Democratic leader Chuck Schumer, D-N.Y.

    While Democrats called for negotiations on the matter, Republicans said a funding bill would need to be passed first.

    “Republicans are ready to sit down with Democrats just as soon as they stop holding the government hostage to their partisan demands,” Senate Majority Leader John Thune, R-S.D., said.

    Thune eventually promised Democrats a December vote on the tax credit extension to help resolve the standoff, but many Democrats demanded a guaranteed fix, not just a vote that is likely to fail.

    Thune’s position was much the same as the one Schumer took back in October 2013, when Republicans unsuccessfully sought to roll back parts of the Affordable Care Act in exchange for funding the government. “Open up all of the government, and then we can have a fruitful discussion,” Schumer said then.

    Democratic leaders under pressure

    The first year of President Donald Trump’s second term has seen more than 200,000 federal workers leave their job through firings, forced relocations or the administration’s deferred resignation program, according to the Partnership for Public Service. Whole agencies that don’t align with the administration’s priorities have been dismantled. And billions of dollars previously approved by Congress have been frozen or canceled.

    Democrats have had to rely on the courts to block some of Trump’s efforts, but they have been unable to do it through legislation. They were also powerless to stop Trump’s big tax cut and immigration crackdown bill that Republicans helped pay for by cutting future spending on safety net programs such as Medicaid and SNAP, formerly known as food stamps.

    The Democrats’ struggles to blunt the Trump administration’s priorities has prompted calls for the party’s congressional leadership to take a more forceful response.

    Schumer experienced that firsthand after announcing in March that he would support moving ahead with a funding bill for the 2025 budget year. There was a protest at his office, calls from progressives that he be primaried in 2028 and suggestions that the Democratic Party would soon be looking for new leaders.

    This time around, Schumer demanded that Republicans negotiate with Democrats to get their votes on a spending bill. The Senate rules, he noted, requires bipartisan support to meet the 60-vote threshold necessary to advance a spending bill.

    But those negotiations did not occur, at least not with Schumer. Republicans instead worked with a small group of eight Democrats to tee up a short-term bill to fund the government generally at current levels and accused Schumer of catering to the party’s left flank when he refused to go along.

    “The Senate Democrats are afraid that the radicals in their party will say that they caved,” House Speaker Mike Johnson, R-La., said at one of his many daily press conferences.

    The blame game

    The political stakes in the shutdown are huge, which is why leaders in both parties have held nearly daily press briefings to shape public opinion.

    Roughly 6 in 10 Americans say Trump and Republicans in Congress have “a great deal” or “quite a bit” of responsibility for the shutdown, while 54% say the same about Democrats in Congress, according to the poll from The Associated Press-NORC Center for Public Affairs Research.

    At least three-quarters of Americans believe each deserves at least a “moderate” share of blame, underscoring that no one was successfully evading responsibility.

    Both parties looked to the Nov. 4 elections in Virginia, New Jersey and elsewhere for signs of how the shutdown was influencing public opinion. Democrats took comfort in their overwhelming successes. Trump called it a “big factor, negative” for Republicans. But it did not change the GOP’s stance on negotiating. Instead, Trump ramped up calls for Republicans to end the filibuster in the Senate, which would pretty much eliminate the need for the majority party to ever negotiate with the minority.

    Damage of the shutdown

    The Congressional Budget Office says that the negative impact on the economy will be mostly recovered once the shutdown ends, but not entirely. It estimated the permanent economic loss at about $11 billion for a six-week shutdown.

    Beyond the numbers, though, the shutdown created a cascade of troubles for many Americans. Federal workers missed paychecks, causing financial and emotional stress. Travelers had their flights delayed and at times canceled. People who rely on safety net programs such as the Supplemental Nutrition Assistance Program saw their benefits stopped, and Americans throughout the country lined up for meals at food banks.

    “This dysfunction is damaging enough to our constituents and economy here at home, but it also sends a dangerous message to the watching world,” said Sen. Jerry Moran, R-Kan. “It demonstrates to our allies that we are an unreliable partner, and it signals to our adversaries that we can’t work together to meet even the most fundamental responsibilities of Congress.”

    [ad_2]

    Source link