Dems Reject White House Homeland Security Proposal as ‘Woefully Inadequate’

Happy Tuesday! The Trump administration's top immigration officials faced heated questioning from congressional Democrats Tuesday at a hearing of the House Committee on Homeland Security. The heads of Immigration and Customs Enforcement and Customs and Border Patrol defended their aggressive crackdown and declined to apologize or answer questions about the fatal shootings of U.S. citizens Alex Pretti and Renee Good in Minneapolis. The hearing took place as talks between the White House and Democrats about funding for the Department of Homeland Security and reforms to immigration enforcement have bogged down ahead of a Friday night deadline. We've got details.

Dems Reject White House DHS Reform Proposal as 'Woefully Inadequate'

Democratic leaders rejected a counteroffer from the White House outlining proposed reforms for the Department of Homeland Security, raising the odds of a shutdown at the sprawling agency when short-term funding expires on Friday night.

Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries said in a joint statement issued Monday night that the White House's response to their 10-point list of demands for changes at DHS is "incomplete and insufficient," and includes "neither details nor legislative text."

Speaking to reporters, Jeffries characterized the counterproposal as "woefully inadequate."

Democrats' demands for reform focus on the behavior of federal agents, who have been accused of excessive violence toward immigrants and citizens alike, and include an end to racial profiling, the use of body cameras and strict restrictions on the wearing of masks. The reforms would mostly affect agents with ICE and CBP, though DHS includes a broad array of agencies, including the Coast Guard, FEMA and TSA, all of which would be affected by a shutdown.

Nearing a stalemate: Although neither side is showing signs of giving ground, Senate Majority Leader John Thune said Tuesday that there is still time to find a compromise.

"There are things I think on probably both sides that are non-negotiables," he said, per Politico. "But I do think there are a number of things in the range of common ground."

Schumer sounded less optimistic, saying on social media that the "Trump administration is all talk, no action" on DHS reform. Noting that thousands of federal agents are still enforcing an aggressive crackdown on immigrants in Minneapolis, Schumer took a firm stand on Democratic demands for reforms at DHS, saying, "Democrats will not pass a DHS funding bill without serious reforms."

Jeffries underlined the point, telling MS NOW's Katie Tur that unless Republicans agree to "dramatic reform of DHS, ICE, CBP and the way in which immigration enforcement is undertaken," a partial government shutdown seems likely. "The ball is in Republicans' court," he said.

Jeffries told Tur that he does not want to pass another short-term funding bill to give negotiators more time to make a deal. "We've heard nothing but crickets in response, in terms of a serious counterproposal," Jeffries said. "Were we to agree to a continuing resolution, in the absence of good faith negotiation, that's just a delay and a stall tactic by this administration."

DHS oversight: In a sign of the anger that has built up over the issue, Democratic lawmakers demanded major changes at DHS during an oversight hearing Tuesday of the House Homeland Security Committee, attended by CBP Commissioner Rodney Scott, Director of Citizenship and Immigration Services Joseph Edlow and Acting Director of ICE Todd Lyons.

"I'm going to say it loud and clear, and I'm proud to stand by what I say: DHS cannot be reformed," Illinois Rep. Delia Ramirez said during questioning. "It must be dismantled, and something new must take its place. Because if we let DHS persist, it will continue to be a weapon that can be pointed at anyone the government considers the public enemy."

New York Rep. Dan Goldman offered some advice to the leader of ICE. "You said in your opening statement that references to ICE as the Gestapo or the secret police encourages threats against ICE agents," he said to Lyons. "The problem is, you have it backwards, sir. People are simply making valid observations about your tactics, which are un-American and outright fascist. So, I have a simple suggestion: If you don't want to be called a fascist regime or secret police, then stop acting like one."

The agency leaders defended their records and the Trump administration's immigration crackdown. "We will not be intimidated," Lyons said. "The president tasked us with mass deportations, and we are fulfilling that mandate."

The officials declined to comment on the shootings of U.S. citizens Renee Good and Alex Pretti by federal agents, citing ongoing investigations into their deaths.

What's next: Thune took a procedural step to set up a Thursday vote on a possible stopgap funding extension for DHS and said he hopes Democrats would go along with that, based on optimism that talks would yield progress. The Senate Homeland Security Committee will hold its own hearing with the Trump administration's immigration officials on Thursday morning.

Trump Administration to Cut $600 Million in Health Funding to Four Democratic States

The Trump administration reportedly plans to cut about $600 million in public health funding to four Democratic-run states: California, Colorado, Illinois and Minnesota.

The cuts target grants to state and local public health departments as well as some nongovernmental organizations that the administration finds to be "inconsistent with agency priorities," according to Apoorva Mandavilli of The New York Times. Nearly two-thirds of the funding, appropriated by Congress and administered by the Centers for Disease Control and Prevention, was reportedly for public health departments in California.

"It is concerning that H.H.S. is cutting public health funding to local communities that cover core functions in the middle of a measles outbreak and other health threats," Dr. Deb Houry, who was the C.D.C.'s chief medical officer until she resigned in protest last year, told the Times. "This coupled with large staffing cuts to federal public health leaves communities less prepared."

The new cuts come after the Department of Health and Human Services last month notified states that it would pause about $5 billion in public health grants but then quickly reversed that decision.

Quote of the Day

"There's no question that massive health care companies have created layers of complexity to jack up the price of everything from prescription drugs to a visit to the doctor. The only way to make health care more affordable is to break up these health care conglomerates."

− Democratic Sen. Elizabeth Warren of Massachusetts, in a statement about the "Break Up Big Medicine Act," a new bill she introduced Tuesday with Republican Sen. Josh Hawley of Missouri that's meant to address consolidation in the U.S. healthcare system.

The bill targets huge companies like UnitedHealthcare and CVS Health that have rolled up various healthcare businesses under one umbrella. The senators note that the three largest pharmacy benefit managers in the country manage some 80% of prescription drug claims, while three major prescription drug wholesalers control 98% of drug distribution.

The new legislation aims to bring down costs and increase competition in the healthcare industry by restricting "vertical integration" and structural conflicts of interest - that is, it would prohibit a parent company from owning a medical provider and a pharmacy benefit manager or insurer, for example. Companies that violate the new restrictions would have a year to comply.

"This bipartisan legislation is a massive step towards making healthcare affordable for every American," Hawley said in a statement.

Industry officials have insisted that their model benefits consumers.

Fiscal News Roundup

• Backlash to Trump Emboldens Democrats on DHS and ICE as Partial Shutdown Looms – NBC News
• Speaker Johnson Backs Full-Year DHS Bill as Thune Eyes Stopgap – The Hill
• Administration Allies Say Judicial Warrants a Red Line for White House in DHS Funding Talks – Politico
• Trump Administration to Cut $600 Million in Health Funding From Four States – New York Times
• Rule Vote Postponed Amid Tariff Backlash – Politico
• Elizabeth Warren and Josh Hawley, Bipartisan Senate Duo, Aim to Break Up "Big Medicine" – CBS News
• Trump's Grip on Billions of Taxpayer Dollars Loosened by Courts – Bloomberg
• Ahead of Jobs Report, White House Seeks to Downplay Any Slowdown – New York Times
• Retail Sales Unchanged in December From November, Closing Out Year on a Lackluster Note – Associated Press
• Dems Demand Lutnick's Resignation Over Epstein Files – Axios
• Governors Won't Hold Trump Meeting After Only Republicans Invited – The Hill
• White House Says Trump 'Floated' the Idea of Naming Penn Station and Dulles Airport After Himself – Associated Press
• Former Police Chief Said Trump Told Him 'Everyone' Knew of Epstein's Actions – New York Times
• UN Is Waiting to See How Much the US Intends to Pay of the Nearly $4 Billion It Owes – Associated Press
• Trump Allies Near 'Total Victory' in Wiping Out U.S. Climate Regulation – New York Times

Views and Analysis

• Why 2026 Is Expected to Be a Tale of Two Tax Seasons – Courtenay Brown and Neil Irwin, Axios
• How to Tax a Trillionaire – Brad Stone, Bloomberg
• No Tax on Tips and Overtime: A Case Study in How the Tax Code Gets More Complicated – Adam N. Michel, CATO Institute
• Federal Tax Revenue Soars, but So Does Entitlement Spending – Wall Street Editorial Board
• 5 Takeaways From the Republican-Led Hearing on ICE – Amber Phillips, Washington Post
• What a New Gallup Poll Shows About the Depth of Americans' Gloom – Linley Sanders, Associated Press
• The Big Money in Today's Economy Is Going to Capital, Not Labor – Greg Ip, Wall Street Journal
• I Just Returned From China. We Are Not Winning – Steven Rattner, New York Times
• The Fed Is Heading for an F on a $7 Trillion Test – Mark Gongloff, Bloomberg
• What Replaces Deported Immigrant Workers? Not Americans – Binyamin Appelbaum, New York Times
• Trump Wants Lower Mortgage Rates. His Fed Pick May Push the Other Way – Andrew Ackerman, Washington Post
• Trump Steaks, Trump University, Trump International Airport? This Has to Stop – Michelle Cottle, New York Times
• 26 Is the New 22. Why Not for This Social Security Program? – A. P. D. G. Everett, Washington Post
• $100 Million Won't Fix Addiction if HHS Keeps Undermining What Works – Nina C. Christie, The Hill