House revolt forces an ACA subsidy vote next year. In a sharp rebuke to Speaker Mike Johnson, four vulnerable House Republicans joined Democrats to complete a discharge petition that will force an early 2026 vote on a three-year extension of enhanced Affordable Care Act subsidies. The move guarantees the House will have to go on record after the subsidies expire at year-end, even though a similar three-year extension already failed in the Senate. The Republicans involved, including Reps. Brian Fitzpatrick and Mike Lawler, say they simply wanted a floor vote on a compromise and were rebuffed by GOP leaders. Johnson now faces another round of intraparty fighting over an issue where Democrats think they have the political upper hand.
Problem Solvers float a new path to an ACA deal. Members of the bipartisan Problem Solvers Caucus met Wednesday to talk about using the newly discharged ACA bill as a vehicle for a broader compromise on subsidies and other health policies, according to Politico. Some Democrats argue the three-year extension already has the most support, while Republicans in the group insist it cannot clear the Senate without tighter eligibility rules and add-ons like expanded health savings accounts. No vote is expected before adjournment.
Democrats target gun tax cuts to shore up Medicare. Senate Democrats are backing the new Medicare Investment and Gun Violence Prevention Act, which would repeal gun tax cuts enacted in the One Big Beautiful Bill Act (OBBBA) and redirect the savings to Medicare. Details are still sparse, but the bill would effectively reverse part of OBBBA’s excise-tax relief for firearms and ammunition. Republicans are likely to frame the proposal as a backdoor gun tax increase, setting up another election-year clash that links fiscal policy, health care, and gun politics.
Massachusetts braces for an income tax ballot fight in 2026. A business-backed coalition, the Massachusetts Opportunity Alliance, is bankrolling potential 2026 ballot questions that would cut the state income tax rate from 5 to 4 percent by 2029 and change the formula used to compute the cap on tax collections, which would trigger more refunds. State budget officials warn the rate cut alone could cost up to $5 billion a year out of an annual budget of around $60 billion, squeezing funding for services unless lawmakers raise other taxes or cut spending. Massachusetts is also bracing for nearly $1 billion in revenue losses tied to President Trump’s new federal tax and spending law.
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