If there’s a legislative fix on the way for the scrapped cost-sharing payments to insurance companies under Obamacare, President Trump seems to be behind it. Trump last week announced he would end reimbursements to insurers selling discounted policies to low-income customers, which the administration has argued haven’t been properly appropriated by Congress. Shortly after it was first reported on Tuesday that Lamar Alexander and Patty Murray had reached a deal on funding these reimbursements, the president was asked about whether the White House had been involved in crafting this fix.
“Yes, we have been involved,” Trump said at a Tuesday afternoon press conference at the White House. “And this is a short-term deal because we think, ultimately, block grants going to the states is going to be the answer.”
Later on Tuesday, in a speech to members of the Heritage Foundation, Trump was more explicit in his support for the idea. “And I’m pleased the Democrats have finally responded to my call for them to take responsibility for their Obamacare disaster and work with Republicans to provide much-needed relief to the American people,” he said. “While I commend the bipartisan work done by Senators Alexander and Murray—and I do commend it—I continue to believe Congress must find a solution to the Obamacare mess instead of providing bailouts to insurance companies.”
As he said in his press conference, Trump continues to believe some version of the Graham-Cassidy health-care compromise is his preferred path for pursuing that Obamacare solution.
All of this is already frustrating conservatives, who saw the cost-sharing payments as what Trump described last week: a “gravy train” of payouts to insurers that subsidize more expensive plans mandated by Obamacare’s tougher regulations on what plans must provide. Alexander, the Republican chairman of the committee overseeing this, has said the fix should be temporary to stabilize the market until Republicans can find a permanent solution. Trump has echoed that view. There’s a reason conservatives are highly skeptical of this—the disastrous results so far of the Republicans in Congress to pass anything repealing and replacing Obamacare.
Passing the Alexander-Murray fix would mean losing conservatives in the House, and a few in the Senate—but gaining Democratic votes. How ironic it would be if President Trump’s biggest legislative achievement of 2017 would be a bipartisan bill to save Obamacare.
Mark It Down—“We feel we have the votes. We’re going to be doing that after the taxes.” —President Trump, on passing an Obamacare repeal and replacement, October 17, 2017
Mueller Watch—From Politico: “Spicer interviewed by Mueller’s team.”
Amid health care and tax reform (remember that agenda item?), there’s the more immediate issue of passing a budget resolution this week. The Tuesday return to Washington of Thad Cochran, the ailing Republican senator from Mississippi, calmed nerves on Capitol Hill and in the White House worried about the tight margins.
But it wasn’t long before Rand Paul announced his intent to vote against the GOP-backed resolution unless the proposed budget nixes $43 million in defense spending that exceeds budget caps set by Congress in 2011. In a tweet Tuesday morning, Paul blamed defense hawks Lindsey Graham and John McCain for “torpedoing the budget by insisting on busting the budget caps for more spending.”
That prompted a snarky comeback from Graham, urging his fellow Republican to not “screw up” tax reform by endangering the budget resolution, which needs to pass in order for the Senate to take up tax legislation.
President Trump has met separately with both Paul and Graham in recent days, and although Politico reports that Trump spoke with Paul Tuesday morning, the White House has not said whether the president has continued to urge the Kentucky senator to support the budget resolution.
Trump Tweet of the Day
BORDER WALL prototypes underway! pic.twitter.com/arFNO80zmO
— Donald J. Trump (@realDonaldTrump) October 17, 2017
2017 Watch—My colleague Andrew Egger writes about one new poll showing a close race for Virginia governor, with Republican Ed Gillespie showing a rare lead over Democrat Ralph Northam, 48 percent to 47 percent.
If the new poll is an indication Gillespie is closing the gap in the final weeks before the November 7 election, it wouldn’t be the first time for the Republican. In his 2014 bid against incumbent Democratic senator Mark Warner, Gillespie trailed in most polls by double digits only to lose by less than one percentage point in the closest Senate race of the year.
The White House has taken some interest in the race across the Potomac River. Vice President Mike Pence stumped for Gillespie in southwest Virginia Saturday.
Special Election Watch—It would be more shocking if Republican Roy Moore lost his special election for the Senate in Alabama in December. But a new Fox News poll now shows a surprisingly close race in the Heart of Dixie, with Democrat Doug Jones tied with Moore in deep-red Alabama at 42 percent.
That’s a far better showing for Jones than in any other poll, and it’s hard to believe that even with Moore’s numerous problems a Democrat could win statewide where Donald Trump won by nearly 30 points in 2016. Then again, perhaps there’s enough fear about the race among Republicans that even Mike Lee and Rand Paul have endorsed Moore.
Must-Read of the Day—For the New York Times Magazine, Jason Zengerle profiles Secretary of State Rex Tillerson. Here’s a taste:
Song of the Day—“Take Control” by Weezer

