White House, GOP prepare for spending battle, healthcare push during recess

House Republicans and White House officials are working the phones during Congress’ two-week recess to prepare for an upcoming spending battle, another legislative push for healthcare and the eventual presentation of a tax reform plan.

With a government shutdown looming on April 28 if lawmakers fail to agree on a funding mechanism, members face pressure to work quickly upon returning from their districts to introduce and vote on a bill that keeps the government running.

“In terms of the spending, I think the appropriators are kind of working with each other on coming up with a deal to close out the fiscal year. Those conversations are taking place,” a House Republican leadership aide told the Washington Examiner.

“The idea is that we can hopefully put together a package that can pass not too long after we get back from recess and basically finish the appropriations process for this year,” the aide said. “The White House is definitely looped in and aware of what’s taking place on that front.”

President Trump signaled this week that an elusive deal on healthcare legislation may also be in the offing. After trying and failing to build consensus around an Obamacare reform bill late last month, the administration and House leadership had sworn off healthcare for the foreseeable future, only to return to the negotiating table the following week.

Behind the scenes, several sources said House Republicans and White House officials have continued working toward a healthcare plan during the first week of recess.

“There are some people like [Reps.] Mark Meadows and Tom MacArthur who are very eager to get to a deal and so we’re encouraging that, but we’re also just reminding people that whatever deal they strike — if they do come to an agreement on something — it needs to be something that can bring along the Freedom Caucus and not lose a lot of votes on the moderate side,” the leadership aide said.

“It’s still kind of being discussed, and I don’t think they’re exactly there yet,” he added.

Members of the conservative House Freedom Caucus objected to the original Obamacare reform bill, the American Health Care Act, because they argued it did not do enough to dismantle the regulatory structure of Obamacare. Centrist Republicans, on the other hand, resisted attempts to add language that would strip away protections for sick consumers, further complicating the path to a deal.

A source with the Freedom Caucus, which Meadows chairs, said healthcare-related conversations between the caucus and the White House “have been frequent and continued through recess.”

Before lawmakers left Washington for the Easter recess, members had approached a deal that would allow states to opt out of certain Obamacare regulations.

While the votes on a compromise bill have not yet materialized, sources on both sides of the negotiating table have expressed optimism in the talks, and Trump himself has said he intends to tackle Obamacare reform before moving on to tax reform.

“A resolution to the American Health Care Act appears to be the top priority for everyone at the moment,” said a source familiar with the current discussions on healthcare and taxes. “I know there are member-level conversations taking place to reach an agreement to have the votes needed to pass the bill. If an agreement is reached during the recess, leadership just might call members back to D.C. for a vote. It is a slim possibility.”

Trump showed interest in moving on to tax reform after the first round of healthcare negotiations unraveled, and Republicans had predicted they would present a plan before the August recess.

But internal disagreements about elements of the tax reform policy slowed the process, prompting the White House to cast doubt on the likelihood that a tax plan will be ready for votes by August.

“The talk about taxes is more active than it has been, but what happens with that, a tax cut versus tax reform, could depend on what happens with the AHCA,” said the source familiar with the healthcare and tax talks.

The Freedom Caucus source said conservative members would soon begin talks on the tax reform plan with the White House, noting the caucus had already spoken with House Ways and Means Committee Chairman Kevin Brady.

“Conversations on tax reform are really just beginning, but we’ve met with Chairman Brady and are sure we’ll start discussing in earnest with the White House,” the source said.

The recess has given congressional Republicans a chance to regroup after a difficult few weeks that yielded only one major achievement: the confirmation of Justice Neil Gorsuch to the Supreme Court.

It has also given the White House an opportunity to shore up its legislative activity away from the spotlight, with most members spending the two weeks away from Capitol Hill in their home districts or states.

However, congressional Republicans will face pressure to deliver on legislative items on Trump’s agenda almost immediately upon returning from Congress. That’s because the White House — up against the end of Trump’s first 100 days in office — will be motivated to notch some achievements to mark the symbolic political milestone.

The White House declined to comment on its legislative activities during recess.

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