Thune Slams Dems, Says DHS Funding Talks 'Going in Circles'

Thune on Tuesday
Reuters
By Yuval Rosenberg and Michael Rainey

Good evening. It's Day 40 of the Department of Homeland Security shutdown and, as unpaid Transportation Security Administration workers face the prospect of another missed paycheck, Democratic and Republican lawmakers are still balking at a compromise deal. (Speaking of balking, Major League Baseball starts its 2026 season tonight, as the Yankees take on the Giants in San Francisco. So at least someone is playing ball.)

Here's your Wednesday update.

Thune Slams Dems, Says DHS Funding Talks 'Going in Circles'

Senators are scrambling - albeit with seemingly limited urgency - to end the partial shutdown of the Department of Homeland Security ahead of a planned two-week recess scheduled to start on Friday. But the brief glimmer of hope from earlier this week that a deal might be imminent has faded as Democrats and Republicans dismiss each other's offers.

The latest such rejection came Wednesday afternoon, as Senate Majority Leader John Thune quickly nixed a counterproposal sent by Democrats, who are insisting that reforms to ICE must be part of any agreement. As the talks drag on, President Trump on Wednesday blasted Democrats and said he may call up the National Guard for more help at airports where long security lines have frustrated travelers.

Both sides balk: Senate Republicans had proposed a deal earlier this week to fund all of DHS except for about $5.5 billion in money for Immigration and Customs Enforcement's enforcement and removal operations. Senate Minority Leader Chuck Schumer and other Democrats rejected that deal. Democrats sent their counteroffer on Wednesday.

"Our offer is a reasonable, good faith proposal that contains some of the very same asks Democrats have been talking about now for months," Schumer said. "These are not new demands. These are not surprise demands. They are not things we came up with yesterday. They are common-sense reforms, reasonable reforms, reforms that police departments across America follow every day."

Schumer didn't detail what reforms Democrats had included, but The New York Times reports that it included some concessions that a bipartisan group of senators had discussed with the White House last week and two demands that the White House and some Republicans have resisted: prohibiting immigration agents from wearing masks and requiring that they seek judicial warrants for searches of private property.

Thune wasted little time in rebuffing the Democrats' offer.

"It's not even close to being real," he said. "They know better. They're asking for things that have already been turned down. So it just seems like they're going in circles, spinning, spinning."

In a speech on the Senate floor, Thune said the Republican offer reflected what Democrats said they wanted all along: to fund all of DHS but the ICE enforcement and removal operations.

He brought up the Republican plan for a vote, but it failed 54-46, falling short of the 60 votes needed. Senators then rejected a series of dueling unanimous consent requests on various proposals related to ending the shutdown.

Will jet fumes help? Forty days into the shutdown, Democrats and Republicans have made little progress toward a deal as they continue to go back and forth. Republicans claim that Democrats are moving the goalposts, while Democrats say their position hasn't changed and that Republicans omitted reforms, like the requirement for judicial warrants, that had already gotten some bipartisan support. Thune said it was unrealistic for Democrats to demand those reforms if they aren't agreeing to fund ICE.

Thune also hinted to reporters that senators' desire to head home for their recess could yet help spur action. "You know how it is around here - it's not Thursday yet," he said.

Quote of the Day

"Many in our workforce have missed bill payments, received eviction notices, had their cars repossessed and utilities shut off, lost their childcare, defaulted on loans, damaged their credit line and drained their retirement savings. Some are sleeping in their cars, selling their blood and plasma, and taking on second jobs to make ends meet, all while being expected to perform at the highest level when in uniform to protect the traveling public."

  • Ha Nguyen McNeill, the acting chief of the Transportation Security Administration, at a House Homeland Security Committee hearing on the effects of the ongoing partial government shutdown.

McNeill told lawmakers that TSA has been shut down for 85 days so far this fiscal year, or about half of the year, and if the agency remains shut down on Friday, its workers will have missed out on nearly $1 billion in pay. McNeill said that TSA has already lost more than 480 workers during this shutdown, as employees quit to find other work.

TSA said that more than 3,100 staffers - over 11% of workers - didn't show up for work on Tuesday, and McNeill warned that some smaller airports may be forced to close if they do not have enough security officers. "This level of disruption is unprecedented and unacceptable and significantly undermines the security of U.S. transportation systems," McNeill said.

Senators Unveil Bill to Cap Insulin Costs at $35

A bipartisan group of senators released a bill Wednesday that would limit the monthly cost of insulin for those with private health insurance to $35 or 25% of list price. The pricing mirrors a benefit provided to Medicare beneficiaries in the Inflation Reduction Act of 2022.

The Improving Needed Safeguards for Users of Lifesaving Insulin Now (INSULIN) Act was introduced by Republican Sens. Susan Collins and John Kennedy and Democratic Sens. Jeanne Shaheen and Raphael Warnock. The bill would require private insurers to waive deductibles and force pharmacy benefit managers to pass through 100% of any discounts from manufacturers. It would also establish a pilot program in 10 states to provide $35 monthly insulin to people without health insurance. If the bill becomes law, the new rules would take effect in 2027.

"The cost of insulin is getting more expensive year after year, forcing one in five Americans with diabetes to ration their insulin," Shaheen said in a statement. "That is completely unacceptable, and it's particularly galling at a time when costs for Americans-including health care prices-are going up across the board."

The American Diabetes Association said it endorses the bill. "Unfortunately, insulin remains unaffordable for almost 30 percent of individuals according to an October 2025 national survey by the American Diabetes Association," a group spokesperson said. "Too many individuals have to choose between paying for life-saving insulin or paying for other life necessities like rent or food."

Number of the Day: $3,781

Kristi Noem is no longer the Secretary of Homeland Security, but lawmakers are still digging into some of the spending she approved during her time leading the federal government's third-largest department. In particular, a $220 million advertising Department of Homeland Security ad campaign featuring Noem has come under scrutiny, and this week a pair of senators released some information about how at least a portion of that money was spent.

Among the details, the lawmakers documented that the spending included a $60,000 bonus for The Strategy Group, the company that filmed the ads after being awarded a $143 million no-bid contract; $20,000 for horse rentals (Noem is prominently featured riding a horse in one ad); and $3,781 for hair and makeup services, presumably for Noem.

"Today, we are pulling back the curtain on the tens of thousands of taxpayer dollars Kristi Noem squandered on extravagant production costs for her personal ad campaign while leading the Department of Homeland Security," said Democratic Sen. Richard Blumenthal. "This absurd waste, fraud, and abuse of taxpayer funds is completely unacceptable."

Debt Ceiling Showdowns Cost Millions in Higher Interest Costs: GAO

Those periodic battles over raising the nation's debt limit that seem to occur in Washington every year or two aren't just embarrassing displays of political dysfunction. According to a new analysis by the nonpartisan Government Accountability Office, those showdowns come with real fiscal costs, driven by investor demand for higher returns on U.S. debt during periods of uncertainty.

Analysts at GAO examined seven debt ceiling showdowns between 2011 and 2023 and found that Treasury securities that matured on or near the projected X date - the day that the federal government would be unable to cover its obligations due to the debt ceiling if lawmakers failed to raise it - lost value. The lower prices translated to higher interest rates. Using two different models, the analysts estimate that the higher interest rates cost the Treasury between $107 million and $161 million.

Beyond the immediate short-term costs resulting from higher rates, GAO noted that there are likely additional costs imposed in the long run as investor confidence is reduced.

"The current debt limit process creates an unnecessary risk of U.S. default, with potentially devastating consequences for individuals, financial institutions, and the broader economy," GAO said. "The costs and market disruptions documented in this report further underscore the need for debt limit reform."

GAO recommends that Congress change its accounting system to "an approach that links debt decisions to spending and revenue decisions at the time they are made."

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