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  • Senate rejects extension of health care subsidies as costs are set to rise for millions of Americans

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    The Senate on Thursday rejected legislation to extend Affordable Care Act tax credits, essentially guaranteeing that millions of Americans will see a steep rise in costs at the beginning of the year.Senators rejected a Democratic bill to extend the subsidies for three years and a Republican alternative that would have created new health savings accounts — an unceremonious end to a monthslong effort by Democrats to prevent the COVID-19-era subsidies from expiring on Jan. 1.Ahead of the votes, Senate Democratic Leader Chuck Schumer of New York warned Republicans that if they did not vote to extend the tax credits, “there won’t be another chance to act,” before premiums rise for many people who buy insurance off the ACA marketplaces.”Let’s avert a disaster,” Schumer said. “The American people are watching.”Republicans have argued that Affordable Care Act plans are too expensive and need to be overhauled. The health savings accounts in the GOP bill would give money directly to consumers instead of to insurance companies, an idea that has been echoed by President Donald Trump. But Democrats immediately rejected the plan, saying that the accounts wouldn’t be enough to cover costs for most consumers.Some Republicans have pushed their colleagues to extend the credits, including Sen. Thom Tillis of North Carolina, who said they should vote for a short-term extension so they can find agreement on the issue next year. “It’s too complicated and too difficult to get done in the limited time that we have left,” Tillis said Wednesday.But despite the bipartisan desire to continue the credits, Republicans and Democrats have never engaged in meaningful or high-level negotiations on a solution, even after a small group of centrist Democrats struck a deal with Republicans last month to end the 43-day government shutdown in exchange for a vote on extending the ACA subsidies. Most Democratic lawmakers opposed the move as many Republicans made clear that they wanted the tax credits to expire.The deal raised hopes for bipartisan compromise on health care. But that quickly faded with a lack of any real bipartisan talks.The dueling Senate votes are the latest political messaging exercise in a Congress that has operated almost entirely on partisan terms, as Republicans pushed through a massive tax and spending cuts bill this summer using budget maneuvers that eliminated the need for Democratic votes. They also tweaked Senate rules to push past a Democratic blockade of all of Trump’s nominees. An intractable issueThe votes were also the latest failed salvo in the debate over the Affordable Care Act, President Barack Obama’s signature law that Democrats passed along party lines in 2010 to expand access to insurance coverage.Republicans have tried unsuccessfully since then to repeal or overhaul the law, arguing that health care is still too expensive. But they have struggled to find an alternative. In the meantime, Democrats have made the policy a central political issue in several elections, betting that the millions of people who buy health care on the government marketplaces want to keep their coverage.”When people’s monthly payments spike next year, they’ll know it was Republicans that made it happen,” Schumer said in November, while making clear that Democrats would not seek compromise.Even if they view it as a political win, the failed votes are a loss for Democrats who demanded an extension of the benefits as they forced a government shutdown for six weeks in October and November — and for the millions of people facing premium increases on Jan. 1.Maine Sen. Angus King, an independent who caucuses with Democrats, said the group tried to negotiate with Republicans after the shutdown ended. But, he said, the talks became unproductive when Republicans demanded language adding new limits for abortion coverage that were a “red line” for Democrats. He said Republicans were going to “own these increases.”A plethora of plans, but little agreementRepublicans have used the looming expiration of the subsidies to renew their longstanding criticisms of the ACA, also called Obamacare, and to try, once more, to agree on what should be done.Thune announced earlier this week that the GOP conference had decided to vote on the bill led by Louisiana Sen. Bill Cassidy, the chairman of the Senate Health, Labor, Education and Pensions Committee, and Idaho Sen. Mike Crapo, the chairman of the Senate Finance Committee, even as several Republican senators proposed alternate ideas.In the House, Speaker Mike Johnson, R-La., has promised a vote next week. Republicans weighed different options in a conference meeting on Wednesday, with no apparent consensus.Republican moderates in the House who could have competitive reelection bids next year are pushing Johnson to find a way to extend the subsidies. But more conservative members want to see the law overhauled.Rep. Kevin Kiley, R-Calif., has pushed for a temporary extension, which he said could be an opening to take further steps on health care.If they fail to act and health care costs go up, the approval rating for Congress “will get even lower,” Kiley said.___Associated Press writers Kevin Freking and Joey Cappelletti contributed to this report.

    WASHINGTON —

    The Senate on Thursday rejected legislation to extend Affordable Care Act tax credits, essentially guaranteeing that millions of Americans will see a steep rise in costs at the beginning of the year.

    Senators rejected a Democratic bill to extend the subsidies for three years and a Republican alternative that would have created new health savings accounts — an unceremonious end to a monthslong effort by Democrats to prevent the COVID-19-era subsidies from expiring on Jan. 1.

    Ahead of the votes, Senate Democratic Leader Chuck Schumer of New York warned Republicans that if they did not vote to extend the tax credits, “there won’t be another chance to act,” before premiums rise for many people who buy insurance off the ACA marketplaces.

    “Let’s avert a disaster,” Schumer said. “The American people are watching.”

    Republicans have argued that Affordable Care Act plans are too expensive and need to be overhauled. The health savings accounts in the GOP bill would give money directly to consumers instead of to insurance companies, an idea that has been echoed by President Donald Trump. But Democrats immediately rejected the plan, saying that the accounts wouldn’t be enough to cover costs for most consumers.

    Some Republicans have pushed their colleagues to extend the credits, including Sen. Thom Tillis of North Carolina, who said they should vote for a short-term extension so they can find agreement on the issue next year. “It’s too complicated and too difficult to get done in the limited time that we have left,” Tillis said Wednesday.

    But despite the bipartisan desire to continue the credits, Republicans and Democrats have never engaged in meaningful or high-level negotiations on a solution, even after a small group of centrist Democrats struck a deal with Republicans last month to end the 43-day government shutdown in exchange for a vote on extending the ACA subsidies. Most Democratic lawmakers opposed the move as many Republicans made clear that they wanted the tax credits to expire.

    The deal raised hopes for bipartisan compromise on health care. But that quickly faded with a lack of any real bipartisan talks.

    The dueling Senate votes are the latest political messaging exercise in a Congress that has operated almost entirely on partisan terms, as Republicans pushed through a massive tax and spending cuts bill this summer using budget maneuvers that eliminated the need for Democratic votes. They also tweaked Senate rules to push past a Democratic blockade of all of Trump’s nominees.

    An intractable issue

    The votes were also the latest failed salvo in the debate over the Affordable Care Act, President Barack Obama’s signature law that Democrats passed along party lines in 2010 to expand access to insurance coverage.

    Republicans have tried unsuccessfully since then to repeal or overhaul the law, arguing that health care is still too expensive. But they have struggled to find an alternative. In the meantime, Democrats have made the policy a central political issue in several elections, betting that the millions of people who buy health care on the government marketplaces want to keep their coverage.

    “When people’s monthly payments spike next year, they’ll know it was Republicans that made it happen,” Schumer said in November, while making clear that Democrats would not seek compromise.

    Even if they view it as a political win, the failed votes are a loss for Democrats who demanded an extension of the benefits as they forced a government shutdown for six weeks in October and November — and for the millions of people facing premium increases on Jan. 1.

    Maine Sen. Angus King, an independent who caucuses with Democrats, said the group tried to negotiate with Republicans after the shutdown ended. But, he said, the talks became unproductive when Republicans demanded language adding new limits for abortion coverage that were a “red line” for Democrats. He said Republicans were going to “own these increases.”

    A plethora of plans, but little agreement

    Republicans have used the looming expiration of the subsidies to renew their longstanding criticisms of the ACA, also called Obamacare, and to try, once more, to agree on what should be done.

    Thune announced earlier this week that the GOP conference had decided to vote on the bill led by Louisiana Sen. Bill Cassidy, the chairman of the Senate Health, Labor, Education and Pensions Committee, and Idaho Sen. Mike Crapo, the chairman of the Senate Finance Committee, even as several Republican senators proposed alternate ideas.

    In the House, Speaker Mike Johnson, R-La., has promised a vote next week. Republicans weighed different options in a conference meeting on Wednesday, with no apparent consensus.

    Republican moderates in the House who could have competitive reelection bids next year are pushing Johnson to find a way to extend the subsidies. But more conservative members want to see the law overhauled.

    Rep. Kevin Kiley, R-Calif., has pushed for a temporary extension, which he said could be an opening to take further steps on health care.

    If they fail to act and health care costs go up, the approval rating for Congress “will get even lower,” Kiley said.

    ___

    Associated Press writers Kevin Freking and Joey Cappelletti contributed to this report.

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

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    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.”

    WASHINGTON —

    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.”

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