08 October 2025 What to expect in Washington (October 8) The extension of enhanced Affordable Care Act (ACA) premium tax credits that expire at the end of 2025 is an increasingly potent political issue this week, as Democrats continue to demand action on the credits as part of a continuing resolution (CR) to extend government funding and end the federal government shutdown. Republicans oppose addressing the ACA premium tax credits in the CR currently before Congress, and while it has long been the case that many GOP members support the enhanced credits, there are evolving signs that some in the party feel the issue should indeed be addressed sooner rather than later. In a widely noted social media post, Rep. Marjorie Taylor Greene (R-GA) said, "when the tax credits expire this year my own adult children's insurance premiums for 2026 are going to DOUBLE, along with all the wonderful families and hard-working people in my district … Not a single Republican in leadership talked to us about this or has given us a plan to help Americans deal with their health insurance premiums DOUBLING!!!" Senator Susan Collins (R-ME), a longtime Senate moderate and dealmaker, is reportedly working on her own plan to extend the credits that may include an income threshold. House Speaker Mike Johnson (R-LA) suggested reforms to the credits would need to be significant to gain traction in his chamber. He said during an October 7 news conference, regarding the ACA credits, "There are lots of conversations and deliberations and discussions right now, even bipartisan amongst members, about necessary changes that would have to be made. Pretty dramatic changes to even have that considered on the floor. I'm not going to forecast the outcome of that. The whole point is you keep the government open and then we have those discussions." Asked October 6 whether he is speaking with Democratic leaders, President Trump told reporters, "I don't want to say that, but we are speaking with the Democrats, and some very good things could happen with respect to health care." Regarding a deal on ACA subsidies, he said, "If we can make the right deal, I'd make a deal, sure," adding, "You have subsidies — that's the problem with Obamacare — the subsidies are so much, it's billions and billions of dollars being wasted and we can have a much better health care [system] than we have right now." The President said, "I'd like to see a deal made for great health care." House Republicans remain out of session this week and may stay away from Washington as long as the shutdown continues, while the Senate may forgo its scheduled recess next week. The Senate on October 6 failed to gain the requisite 60 votes for the Democratic alternative CR (S. 2882) to extend funding through the end of October and extend enhanced ACA premium tax credits, or the House-passed GOP CR (H.R. 5371), the fifth time the measures have been put to a vote. Three Democratic votes — Democrats Catherine Cortez Masto (D-NV) and John Fetterman (D-PA) and Independent Senator Angus King (I-ME) — supported the GOP CR. However, Senator King said he's "contemplating" changing and voting no "unless the Republicans are more forthcoming dealing with the ACA problem," per a CNN report. Health care — Following the regular weekly policy lunches October 7, Senate Democratic leader Chuck Schumer (R-NY) said, "the Republicans are beginning to flip-flop — they're realizing the power of the health care argument from one end of America to the other … Yesterday, Speaker Johnson couldn't even look directly into the camera, saying his party is the party working to fix health care. A week or two ago, he didn't want to talk about it." Senate Majority Leader John Thune (R-SD) put the onus on Democrats for the effects of the shutdown and the lapse in health extenders. "Telehealth, hospital at home, programs like that have expired, meaning that patients are losing their flexibility and making it harder to cover the people that need to be covered," he said. "And then of course, this week, paychecks start being affected for federal workers, and that is going to have real consequences for them and their families as well." There has long been speculation about a potential year-end package addressing expiring tax, health and trade items, though it would likely require a bipartisan appropriations bill as the vehicle, and those prospects remain up in the air with the shutdown. One issue that Republicans have raised as a possible legislative priority that was omitted from OBBBA, but would require bipartisan action and leadership support, is pharmacy benefit manager (PBM) reform. Politico reported October 7 that "Sen. James Lankford [R-OK] has been discussing trying to enact an overhaul to the operation of drug intermediaries, known as pharmacy benefit managers, at the end of this year" but "it's got to have some more focus time." Lankford said he believes Republicans need to "do the final bit of negotiation between the House and Senate on it," as well as figure out which legislative vehicle would be most appropriate for moving the PBM proposals, the report said. "I'm skeptical there's going to be some sort of large health package that comes together in the next six weeks," Lankford said. Politico further reported, "For his part, [Senate] Finance Chair Mike Crapo [R-ID] also reiterated to reporters Monday that he'd like to advance the bipartisan PBM package that passed out of his committee in 2023 by an overwhelming 26-0 vote. 'I'd like to move it this year,' he said." Treasury/IRS — Today, October 8, the Senate Finance Committee plans to vote on Treasury nominations for Donald Korb to be IRS Chief Counsel, Derek Theurer to be Deputy Under Secretary of the Treasury for Legislative Affairs, and Jonathan Greenstein to be a Deputy Under Secretary of the Treasury. Treasury Secretary Scott Bessent announced October 7 that Derek Theurer will perform the duties of Deputy Secretary of the Treasury given "his ongoing commitment to serving the American people, deep policy acumen and legislative expertise, as well as years of operational experience." Secretary Bessent also announced October 6 that Social Security Commissioner Frank Bisignano will serve as Chief Executive Officer (CEO) of the IRS, reporting directly to Acting Commissioner Bessent, managing the organization and overseeing all day-to-day IRS operations while also continuing to serve in his role as Commissioner of the Social Security Administration. The Wall Street Journal reported, "Bisignano will help implement the administration's vision for the IRS, which emphasizes upgraded technology and retreats from the heavier enforcement initiatives" in effect during the Biden administration. "On paper, Bisignano is the kind of executive that presidents of both parties have picked to run the tax agency in the past 30 years. He's the former chief executive of Fiserv, the payments processing company, which means he has experience in running a large organization that manages sensitive data and complex information-technology projects," the report said. Secretary Bessent took over the IRS in August after President Trump removed Billy Long from the post two months after his confirmation. The President is still expected to nominate a new IRS commissioner. In Notice 2025-55, IRS provided relief from failure to deposit penalties under Section 6656 of the tax code in connection with the new excise tax imposed on certain remittance transfers under Section 4475. Trade — President Trump met with Canadian Prime Minister Mark Carney to discuss trade issues October 7. Asked during a media availability what it would take to drop or lower tariffs on Canadian sectors, including aluminum and steel, the President said, "Well, we're going to be talking about that with the Prime Minister, and we'll be talking about tariffs, we'll be talking about a lot of that, but that's for a little bit later on." Asked why Canada and the United States have failed to reach an agreement up until now, the President said, "Well, it's a complicated agreement, more complicated maybe than any other agreement we have on trade. Because, you know, we have natural conflict. We also have mutual love … The problem we have is that they want a car company and I want a car company, meaning the US wants a car company. And they want steel and we want steel." The President said the U.S.-Mexico-Canada Agreement (USMCA) could be renegotiated "or we could just do different deals … We might make deals that are better for the individual countries," Bloomberg reported. "I want to make whatever the best deal is for this country" and Canada.
Document ID: 2025-2035 | |||