Trump has scrambled health care talks

IN THIS EDITION

How Trump once again rattled health care talks

Senate GOP leaders look to avoid rare floor defeat

House makes minibus progress, plots next package

PBM trade association hires new leadership

Nearly 50 House Dems back Julie Johnson

THE TOP

How Trump once again rattled health care talks

Happy Thursday morning.

For a moment, it seemed like President Donald Trump was nudging Republicans to make a health care deal with Democrats and address one of the biggest election-year vulnerabilities facing the GOP.

But it may have the exact opposite effect.

On Tuesday, Trump told Republicans to “be flexible” when it comes to restrictions on federal funding for abortion, known as the Hyde Amendment, seen as the biggest obstacle to a bipartisan Obamacare deal.

Some Republicans involved in bipartisan Senate talks over an Obamacare subsidies extension had already indicated they’d be comfortable with language that doesn’t expand Hyde, according to sources with direct knowledge of the talks.

But Trump’s comments sparked immediate outrage from anti-abortion rights groups, as well as pushback from Speaker Mike Johnson and other GOP leaders — effectively sapping any momentum Trump’s prodding may have ignited.

Behind the scenes, key Republicans are complaining that Trump, who’s been completely disconnected from the bipartisan Obamacare negotiations, is leaving them twisting in the wind.

“If [Trump] felt strongly enough to prod us in public, why doesn’t he send his advisers to come meet with us and work out a deal?” said a GOP senator involved in the bipartisan talks. “If the White House embraces a deal that’s squishy on Hyde, I have no doubt in the world that he can convince enough of us to vote for it.”

To many Republicans, the episode was further evidence that a deal simply can’t get done without intense involvement from the White House and, in some cases, Trump personally.

Adding to their frustration is the fact that Democrats are about to score a victory in the House today with the passage of House Minority Leader Hakeem Jeffries’ proposal to extend the Obamacare subsidies for three years.

While this measure isn’t going anywhere in the Senate, it puts pressure on Senate Republicans and provides the chamber a legislative vehicle to potentially amend and send back to the House. It also gives Democrats another cudgel to use against Republicans in the midterms. More on this in a moment.

Inside the talks. The bipartisan Senate group believes it’s on the verge of a deal. But the Hyde language is now viewed more acutely as an insurmountable problem.

Republicans want new funding restrictions, while Democrats are refusing to back anything that goes beyond current law. They don’t agree on whether the law sufficiently applies Hyde as-is.

Rep. Nick LaLota (R-N.Y.), a House backer of the Obamacare extension, told us that Republicans “shouldn’t move the goal posts on Hyde” beyond current law.

“You don’t change the rules in the middle of the game,” LaLota said.

If the Senate ACA group is able to resolve the Hyde standoff, they have the contours of a potential deal for the Obamacare extension sketched out.

The agreement would likely extend the subsidies for two years, cap eligibility at 700% of the federal poverty level and require a minimum premium payment. It would also extend open enrollment until March 1. This is in line with Rep. Brian Fitzpatrick’s (R-Pa.) bipartisan bill in the House.

The deal could involve some additional health care provisions, such as cost-sharing reductions and flexibility for health savings accounts.

New hope. The Senate group has been working off fresh momentum from the House, which is on the verge of a politically massive vote to pass the Democratic proposal.

Nine House Republicans broke with their GOP leadership Wednesday to back the Democrats’ discharge petition in an initial procedural vote. The underlying bill will be on the floor today.

Meanwhile, members of the Problem Solvers Caucus will meet with senators later this morning.

Whatever happens next, the political stakes are massive.

1) Today’s vote is poised to be a major win for Jeffries and House Democrats. This is one of the biggest moments of Jeffries’ leadership so far.

Jeffries successfully played his hand so that the GOP House majority is voting on a clean ACA patch — something all Democrats want. It makes Republicans extremely uncomfortable. The vote will put House Republicans on the record on a very sensitive political issue.

Rep. Alexandria Ocasio-Cortez (D-N.Y.) told us Democrats need to hammer home that Republicans are still standing in the way of restoring the Obamacare subsidies.

“While it is a victory for [Jeffries] to bring his priority to the floor via a discharge petition, we also need to remain focused on what can be delivered here,” Ocasio-Cortez said.

2) GOP moderates are facing a crucial test that could directly impact their political futures.

If vulnerable Republicans in both chambers can’t capitalize on the House momentum and force a Senate deal, the political consequences may be disastrous for them.

For Democrats, the House vote underscores that Democrats are fighting for the Obamacare subsidies, and it will be on Republicans if they choose not to act.

Also: Rep. Steny Hoyer (D-Md.), 86, is retiring. He sat down with our friend Paul Kane of the Washington Post for two hours “at his sprawling home on the Patuxent River in St. Mary’s County.” Hoyer served as the number two House Democrat for 16 years during his legendary congressional career, which began in 1981.

Happening today: Sen. Eric Schmitt (R-Mo.) will be our guest on Fly Out Day. Subscribe to our YouTube page here.

— Laura Weiss and Andrew Desiderio

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DEFENSE

Senate GOP leaders look to avoid rare floor defeat

Senate Republican leaders are working to avoid a rare floor defeat as senators are set to vote Thursday on whether to rein in President Donald Trump’s military campaign in Venezuela.

Senate Majority Leader John Thune and Majority Whip John Barrasso have lost very few floor votes since Republicans took the majority a year ago. The White House is also eager to stave off a vote of no confidence just five days after Trump ordered an operation to capture longtime Venezuelan President Nicolás Maduro.

“Republicans support what the president has done,” Barrasso told us. “It was an incredible act and the military was absolutely superb.”

But heading into the vote, there are a half-dozen undecided GOP senators, none of whom were immediately swayed by top Trump administration officials after a classified briefing on Wednesday.

The war powers resolution, pushed by Sens. Tim Kaine (D-Va.) and Rand Paul (R-Ky.), needs a simple majority to advance. Sen. John Fetterman (D-Pa.) has indicated he may break with his party, meaning that at least five Republican defections would be needed.

Who we’re watching. GOP Sens. Josh Hawley (Mo.), Thom Tillis (N.C.), Susan Collins (Maine), Lisa Murkowski (Alaska) and Todd Young (Ind.) have yet to say how they’ll vote on the resolution.

A few of them said after Wednesday’s briefing that they still had significant unanswered questions about the administration’s short- and long-term plans when it comes to potential military action related to Venezuela.

“We were told that there are currently no boots on the ground. Is it an option? What I heard was that everything is an option,” Hawley said.

The Missouri Republican said separately that he would oppose U.S. troops on the ground in Venezuela, believing that would require congressional approval.

Paul told reporters Wednesday that at least two Republicans he’s spoken with who opposed similar war powers efforts late last year are “thinking about” backing the latest push.

House war powers news. A group of House lawmakers, led by Reps. Jim McGovern (D-Mass.) and Thomas Massie (R-Ky.), will roll out a war powers resolution Thursday at noon. It’ll be functionally the same as the version that came just short of House passage in December.

This is news. A bipartisan duo of House members is unveiling a bill today aiming to fix longstanding problems stemming from the military’s current duty status structure. The existing setup often leaves Reserve and National Guard forces with pay and benefit disruptions when their missions and job functions change.

The proposed legislation from Reps. Gil Cisneros (D-Calif.) and Jack Bergman (R-Mich.) would consolidate the more than 30 duty statuses into four broad categories, per a one-page summary of the bill.

Russia sanctions: Sen. Lindsey Graham (R-S.C.) announced late Wednesday that Trump has “greenlit” his long-stalled Russia sanctions bill. Graham said the bill could hit the Senate floor as soon as next week, but February is much more likely given that FY2026 appropriations will get priority on the floor for the rest of the month.

— Andrew Desiderio, Briana Reilly and Anthony Adragna

GOVERNMENT FUNDING

House makes minibus progress, plots next package

The House is poised to pass another trio of funding bills today with bipartisan support, taking a crucial step forward in the government funding process. But the most controversial spending bills are up next.

The House passing the FY2026 Commerce-Justice-Science, Interior and Energy and Water bills Thursday would set up quick consideration of the package in the Senate. Senate Appropriations Chair Susan Collins (R-Maine) said the first vote in the Senate on Monday will likely be a procedural vote on the minibus.

With that package now seemingly on the glide path to enactment, work will heat up on the remaining six bills ahead of the Jan. 30 deadline to fund the government. House Appropriations Chair Tom Cole (R-Okla.) will meet with his appropriations cardinals Thursday for progress updates and to discuss strategy. The four leaders of the House and Senate Labor-HHS subcommittees will also meet to discuss their bill.

The next minibus appropriations that leaders are planning for the House floor would contain FY2026 funding bills for Homeland Security, State-Foreign Operations and Financial-Services and General Government. While senior appropriators say they’re close to releasing bill text, there’s some remaining issues they still need to hash out before that happens.

“We will get that out completely in time to be on the floor next week,” said Rep. Mario Diaz-Balart (R-Fla.), the SFOPs cardinal.

But this is a tougher package to wrap up. Keep a close eye on the Homeland Security bill. Sen. Chris Murphy (Conn.), the top Senate Democrat for the DHS bill, wants more constraints to rein in DHS, especially after Wednesday’s deadly shooting in Minneapolis.

Republicans want more money for ICE enforcement and an additional 45,000 detention beds, according to a congressional aide. It’s unclear if Democrats will accept that without the restrictions Murphy is seeking.

FSGG fights include IRS funding and money for the new FBI headquarters. Democrats also want language limiting the White House’s ability to fire federal employees, but that’s difficult for the GOP.

Earmark uneasiness. House Republican leaders put down a revolt from conservative hardliners Wednesday over earmarks that briefly derailed the spending package’s consideration.

The House Freedom Caucus wants more member input on appropriations bills, particularly on earmarks, starting with the next minibus — and GOP leadership gave them those assurances. If conservatives strike more Democratic earmarks or change bill text, they’ll risk alienating Democrats whose votes are needed to pass the bills.

House Majority Whip Tom Emmer said there won’t necessarily be changes to how leaders bring appropriations bills to the floor, but said “communication is key.”

– Samantha Handler and John Bresnahan

DOWNTOWN DOWNLOAD

PBM trade association hires new leadership

The trade association that represents pharmacy benefit managers has a new CEO and chief communications officer.

The Pharmaceutical Care Management Association is hiring David Marin as president and CEO and Brendan Buck as the chief communications officer, in an overhaul of its executive ranks.

Let’s be clear: PBMs have had a rough go at it in D.C. They are, effectively, the middlemen that handle the business side of the nation’s prescription drug infrastructure, negotiating prices with manufacturers, setting reimbursement rates and deciding what’s covered.

Congress has said for years that PBMs jack up the price of pharmaceuticals. And lawmakers have been on the brink of restructuring the industry. Powerful groups like PhRMA have spent hundreds of thousands of dollars on ads over the last year, pressuring Congress to crack down on PBMs.

The PCMA is clearly looking to get more aggressive by adding two D.C. veterans with ample experience in the political arena.

The PCMA counts CVS Health, Express Scripts and Optum RX as members — that trio controls a huge chunk of the prescription drug market.

Marin is joining PCMA from Viatris, where he ran government affairs and public policy. Marin has also worked downtown at the Podesta Group. He was the Republican staff director of the House Oversight Committee under former Rep. Tom Davis (R-Va.).

Buck is a well-known Republican communicator in Washington who, for our community, is best known as the former top aide to former Speaker Paul Ryan. Buck also worked for Ryan at the House Ways and Means Committee, and as press secretary to former Speaker John Boehner.

He is leaving Seven Letter, a public affairs firm.

– Jake Sherman

THE CAMPAIGN

Nearly 50 House Dems back Julie Johnson

News: Top House Democratic leaders and some 40 other House Democrats endorsed Rep. Julie Johnson (D-Texas) Thursday in her primary against former Rep. Colin Allred (D-Texas).

House Minority Leader Hakeem Jeffries, House Minority Whip Katherine Clark, Caucus Chair Pete Aguilar, Caucus Vice Chair Ted Lieu and DCCC Chair Suzan DelBene all backed Johnson.

Among her other endorsers: Reps. Alexandria Ocasio-Cortez (D-N.Y.), Vicente Gonzalez (D-Texas), Sylvia Garcia (D-Texas), Brad Schneider (D-Ill.), Greg Stanton (D-Ariz.) and Ritchie Torres (D-N.Y.). Check out the full list here.

This race will be a brutal battle in what is already a particularly fractious Democratic primary season. Scores of younger candidates are primarying longtime incumbents, arguing for generational change.

In Congress, Allred was a member of the Congressional Black Caucus and the New Democrat Coalition. Not many CBC members are on Johnson’s endorsement list but both Schneider and Stanton are leaders of the New Dems.

Allred’s eleventh-hour decision last December to exit the Senate race and challenge Johnson for Texas’ 33rd District sent shockwaves through the Democratic Caucus. Johnson replaced Allred in the House only to see that district erased under the GOP’s gerrymandered map. But Johnson had declared for the vacant 33rd District before Allred jumped in.

Fundraising scoops: Democrat Rebecca Cooke announced raising $1.1 million in the last three months of 2025 for her bid to oust Rep. Derrick Van Orden (R-Wis.). Cooke began 2026 with $2.5 million in the bank. Wisconsin’s 3rd District is a top target for Democrats in 2026.

— Ex-DOJ attorney Ryan Crosswell, a Democrat, raised $440,000 for his run against Rep. Ryan Mackenzie (R-Pa.). This is shaping up to be a messy Democratic primary.

— Democrat Shannon Taylor raised $400,000 last quarter for her bid to take on Rep. Rob Wittman (R-Va.). Virginia Democrats are plotting to redraw Wittman’s district.

— Ally Mutnick

MOMENTS

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