Trump Announces $12 Billion Aid Package for Farmers
Happy Monday! The Supreme Court signaled today that it is likely to take another step to expand presidential power by overturning a 90-year-old precedent that limited a president's ability to fire executive officials of independent federal agencies. Chief Justice John Roberts reportedly referred to the unanimous 1935 court decision known as Humphrey's Executor as "a dry husk."
Here's what else is happening.
Trump Announces $12 Billion Aid Package for Farmers
President Trump on Monday announced a $12 billion aid package for farmers struggling with the fallout of his trade war with China and other major purchasers of U.S. agricultural goods.
Trump has raised tariffs on trade partners around the world in an effort to spur domestic production, prompting some countries to increase their own tariffs, making U.S. exports less competitive. China took its retaliation one step further by ceasing to purchase some agricultural exports entirely, including soybeans - a serious blow to U.S. farmers, who sell about half of their soybean crop to the Asian manufacturing giant.
Amid signs that Trump's trade war is cooling, the administration announced last month that China has agreed to resume it purchases of soybeans, but there are still questions about whether the country will fulfill its pledge to buy 12 million tons by the end of the year.
At a White House event, Agriculture Secretary Brooke Rollins said applications for aid will open in the next few weeks, and farmers will start receiving checks by February 28. About $1 billion from the $12 billion fund will be held back to provide aid for farmers whose applications are still under review.
Speaking to reporters in the White House Cabinet Room, Trump claimed that the aid package would be funded by revenue from his tariffs. "This money would not be possible without tariffs, the tariffs are taking in, you know, hundreds of billions of dollars, and we're giving some up to the farmers because they were mistreated by other countries," he said.
However, Bloomberg reports that an administration official said the funds will be authorized under the Commodity Credit Corporation Charter Act, the same Depression-era law Trump relied on to provide a $28 billion bailout of farmers during his first administration.
Trump also blamed the Biden administration for the problems that farmers are experiencing. Farmers were "crushed by the worst inflation in modern history and crippling restrictions on energy, water and countless other necessities for farmers," he said.
In addition to providing direct financial relief, Trump promised to eliminate environmental rules that are making farm equipment more expensive. "A lot of the reason [equipment is so expensive] is because they put these environmental excesses on the equipment which don't do a damn thing except make it complicated, make it impractical, and you really have to be, in many cases you need about an 185 IQ to turn on a lawn mower. So we're going to take that off, that crap off that they put on, Biden mostly."
Some critics have argued that Trump has a simpler way to help farmers at his disposal. "While we need to help farmers who have been hurt by the President's across-the-board tariffs, ultimately farmers want trade - not aid," said Sen. Amy Klobuchar, the senior Democrat on the Committee on Agriculture, Nutrition, and Forestry. "The easiest way to give our farmers more certainty would be for the President to end his tariff taxes."
Defense Spending Tops $900 Billion in Compromise 2026 NDAA
Lawmakers on Sunday released the 3,086-page text of the 2026 National Defense Authorization Act, the annual policy bill for the Department of Defense and related national security activities.
The NDAA would authorize defense spending of $900.6 billion in fiscal year 2026, about $8 billion more than the Pentagon sought in the White House budget request earlier this year. The budget topline number is a compromise between the House version of the bill, which followed the Pentagon's request, and the Senate's version, which increased the request by $32 billion.
The bill includes $291 billion for operations and maintenance; $234 billion for military personnel and healthcare; $162 billion for procurement; $146 billion for research and testing; $34 billion for nuclear programs; and $20 billion for construction and housing. Enlisted service members would receive a 3.8% pay raise.
The legislation would codify 15 of President Trump's executive orders, touching on issues including border security, space-based defense and weapons development. Projects described by Trump as key priorities that would receive funding include the "Golden Dome" missile defense program, the Air Force's F-47 and Navy's F/A-XX next-generation fighters, and the B-21 Raider stealth bomber, as well as numerous ships and ground vehicles. The bill would also fund efforts to boost the nation's industrial base.
According to a summary provided by the House Armed Services Committee, the NDAA provides $20 billion in savings through reductions in the Pentagon bureaucracy, cuts to climate-change-related spending, the elimination of DEI-related activities, the retirement of obsolete equipment and cutbacks in consulting contracts.
The bill "roots out Biden-era wokeism in our military and restores merit-based promotions and admissions to service academies, prohibits contracts with partisan firms, counters antisemitism, and halts harmful, unnecessary programs like [critical race theory], DEI, and climate initiatives," House Speaker Mike Johnson said in a statement.
The 2026 NDAA does not, however, codify Trump's preferred name for the Department of Defense, which the White House now refers to as the Department of War. And it pressures the Pentagon to turn over video of controversial strikes against purported drug-smuggling boats in the Caribbean Sea and Pacific Ocean by withholding a quarter of Defense Secretary Pete Hegseth's travel budget until the videos are shared with Congress.
The House could vote on the bill as soon as this week.
Republicans Push Competing Health Plans as ACA Vote Looms
The fate of the enhanced Obamacare subsidies could be determined this week.
The Senate is scheduled to vote Thursday on a Democratic plan to extend the enhanced tax credits, which are set to expire in just over three weeks, leaving subsidies at their original 2010 levels. That bill is expected to fall short of the 60 votes needed to pass. Republicans, meanwhile, are reportedly leaning against holding a vote on an alternative plan of their own. As they race to see if they can coalesce around a plan and fret about a voter backlash if they can't put forth a strategy for dealing with rising costs, various Republican senators are offering up competing proposals.
"Some Republicans want a deal to preserve the enhanced subsidies, heading off voter ire and preventing an election-year nightmare scenario for the GOP," The Hill's Joseph Choi and Nathaniel Weixel write. "Others want the enhanced subsidies to expire and be replaced by direct cash to Americans, convinced they can blame Democrats for high costs."
Here's a quick look at some of the GOP plans being proposed.
Moreno and Collins: On Monday, Sens. Bernie Moreno of Ohio and Susan Collins of Maine introduced the "Consumer Affordability and Responsibility Enhancement (CARE) Act," which would provide a two-year extension of the expiring ACA tax credits but cap eligibility at household income of $200,000 "because wealthy Americans don't need Uncle Sam's help buying insurance." The plan would also eliminate $0 premiums and would require a $25 minimum monthly payment meant to root out fraud.
"Families in Maine and across the country are struggling with the high cost of health care, and we need to pursue practical solutions that increase affordability without creating sudden disruptions in coverage," Collins said in a statement.
The plan is similar to bipartisan proposals being developed in the House as well as a plan that was floated by the White House but quickly scrapped in the face of pushback from Republican lawmakers.
Marshall: The Kansas Republican, who is a physician, is pitching what he calls "The Marshall Plan Act," which reportedly would extend the Obamacare subsidies for a year and then, starting in 2027, shift the enhanced premium tax credit funds into an account similar to an HSA. Eligibility for the enhanced subsidies initially would be capped at 700% of the poverty level and would be phased out over five years. The plan also emphasizes increased price transparency for patients, which Marshall says could lead to $1 trillion a year in savings. And it calls for providing funds to states for a "high-risk reinsurance pool program" to help manage the costs of covering people with expensive medical conditions.
Crapo and Cassidy: Sens. Mike Crapo of Idaho, chair of the Senate Finance Committee, and Bill Cassidy of Louisiana, the chair of the health committee, have put forth a bill that would allow the enhanced ACA subsidies to end as scheduled. Their plan would instead expand eligibility for health savings accounts and redirect funding that would have been used for enhanced subsidies into those accounts, which would be paired with bronze or catastrophic ACA plans. It would expand the eligibility for those catastrophic, or "copper," plans as part of an overall push to shift people to plans with lower premiums and higher deductibles.
"Instead of 100% of this money going to insurance companies, let's give it to patients," Cassidy said in a statement. "By giving them an account that they control, we give them the power. We make health care affordable again."
Eligible enrollees making less than 700% of the federal poverty level would get $1,000 if they are between the ages of 18 and 49, while those aged 50 to 64 would get $1,500, according to a summary released by the senators.
"Senator Cassidy's health proposal presents tradeoffs," Larry Levitt of the healthcare research foundation KFF wrote in a Sunday post on X. "Healthier people would benefit from contributions to health savings accounts and low premium high deductible plans. Sicker people would end up with higher premiums or higher deductibles. But, it wouldn't destabilize the ACA."
Levitt added in a separate post Monday that the HSA contributions under this plan would be similar to the average increase in out-of-pocket premiums if the enhanced tax credits expire, which is projected to be just over $1,000. "But," he added, "the average deductible in a bronze plan will be $7,476, so a $1,000 or $1,500 HSA will leave people quite exposed."
The plan, called the "Health Care Freedom for Patients Act," would also fund "cost-sharing reduction payments" to lower premiums starting in 2027, cut Medicaid funding to states that provide coverage to undocumented immigrants and prohibit the use of federal money or HSA funds for abortion and transgender services.
Other GOP ideas: Sen. Rick Scott of Florida has proposed a plan that would create "Trump Health Freedom Accounts," redirecting subsidy money to accounts that could be used to pay for healthcare costs. Sen. Josh Hawley of Missouri wants to let people deduct some medical expenses from their taxes.
The bottom line: Senate Republicans have lots of ideas but haven't united behind a single plan, nor have they offered a comprehensive overhaul of the U.S. healthcare system. On the House side, Speaker Mike Johnson is reportedly expected to introduce a plan to be voted on later this month. Bipartisan plans are also in the works. Despite all that, it's still not clear if Congress will act to extend the expiring subsidies or be able to pass any bill to lower healthcare costs.
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Fiscal News Roundup
- GOP Senators Circulate Health Care Frameworks Ahead of Vote on Dem Plan – Politico
- Senate Republicans Float Competing Health Care Plans – The Hill
- The GOP Can't Agree on a Healthcare Plan. Some Republicans Are Panicking – Wall Street Journal
- Trump Unveils $12 Billion Aid Package for Farmers Hit by Trade War – Reuters
- 'Only So Long' Before Trump's Tariff Costs Hit Consumers, Businesses Warn – Politico
- Republicans Have an Affordability Problem. They Can't Agree on How to Fix It – Politico
- 'People Aren't Dumb': Republicans Worry They're Not Doing Enough on Affordability – NBC News
- Trump Tasks Top Advisers With Finding Way to Lower Soaring Beef Prices – Wall Street Journal
- Despite Trump Tariffs, China's Global Trade Surplus Tops $1 Trillion – Washington Post
- BLS to Skip October PPI Report – Wall Street Journal
- Compromise NDAA Released With Bigger Topline, $8 Billion Above Pentagon's Request – Breaking Defense
- US Lawmakers May Withold Hegseth Travel Funds to Force Boat Video Release – Reuters
- House GOP Leaders Plan Wednesday NDAA Vote – Politico
- Supreme Court Seems Ready to Let Trump Fire Independent Commissioners – Axios
- The F.T.C. Chairman Who Tilted the Agency to Trump – New York Times
- National Park Service Drops Free Admission on MLK Day, Juneteenth While Adding Trump's Birthday – Associated Press
Views and Analysis
- Obamacare Users Will Be Asked to Pay More for Plans That Cover Less – Reed Abelson, New York Times
- Republicans Scramble for Health Care Ideas as Obamacare Deadline Looms – Ryan Cooper, American Prospect
- Josh Hawley's Non-Solution on Health Care – Washinton Post Editorial Board
- Republican Unity Crumbles as America's Mood Sours – Axios
- Obamacare Subsidies Make It Too Easy to Scam the System – Washington Post Editorial Board
- Anger Is a Defining Character Trait for Both Parties, New Study Shows – Paul Kane, Washington Post
- How to 'Solve' a Self-Created Trade Mess – Washington Post Editorial Board
- Overmatched: Why the U.S. Military Must Reinvent Itself – New York Times
- Trump Is Coming for Veterans' Disability Benefits – Suzanne Gordon and Steve Early, American Prospect
- What's the Point of Congress? – Rep. Nance Mace (R-SC), New York Times