Showdown Over Healthcare Vote Is a Sign of What's to Come -- WSJ

By Damian Paletta

Good morning. Oftentimes lawmakers will pass a bill that creates a program that expires, and then the expiration of that program ticks like a bomb, creating more panic as the deadline nears.

Hear the ticking?

Healthcare subsidies created by Democrats in 2021 expire at the end of this year.

The Senate is split. Republican leaders are advancing a plan that would create health savings accounts to offset healthcare costs, while Democrats -- and some Republicans -- want to temporarily extend the existing subsidies. In a moment when voters appear quite frustrated about costs and affordability, this has become a big political and economic dilemma.

Democrats have raised the alarm on the expiration of programs in the past, only to see deadlines come and go with little political fallout for Republicans. But this time, the stakes are higher, with many voters in red states set to be hit by much higher health insurance premiums.

If separate bills advanced by Republicans and Democrats fail on Thursday, as expected, it could force both parties to work together next year on a resolution as voter pressure intensifies ahead of the midterms. Or both parties could dig in.

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People and Policies I'm Watching

Fed cuts interest rates: Divisions within the central bank could make a 2026 rate cut tough -- no matter who is the Fed chair.

No quarter given: The Trump administration scrapped a plan to honor the abolition of slavery, women's suffrage and the civil-rights movement on quarters for the nation's 250th birthday.

President Trump's Thursday: He is set to participate in a signing ceremony in the afternoon and later to deliver remarks at the Congressional Ball.

What I'm Following

The U.S. is moving to screen foreign visitors' social-media history for entry. Citizens of 42 countries, including the U.K., France and Japan, will have to disclose the past five years of their social-media history to visit the U.S. for short stays, even though they are covered by visa-waiver schemes, under new proposals by the Trump administration.

For Trump, the Warner megadeal talks are all about a frequent subject of his ire -- CNN. The president said Wednesday that the ownership of CNN should change regardless of which company buys Warner, and that it is "imperative that CNN be sold." His intervention in corporate dealmaking raises fresh questions about how a transaction might proceed.

The president is using his power of pardon very differently during his second term. Most occupants of the White House, including Trump in his first term, typically hand out pardons at the end of their first four years. Trump has already issued a wave of pardons so far in the first year of his second term.

What Else Is Happening

   -- A federal judge ruled that the Trump administration must end its National 
      Guard deployment in Los Angeles. 
 
   -- The U.S. seized an oil tanker off the coast of Venezuela, whose 
      opposition leader escaped from her homeland. 
 
   -- A U.S. blueprint to rewire economies of Russia and Ukraine set off a 
      clash with Europe. 
 
   -- Crumbling peace deals show the limits of Trump's approach to ending wars. 

What I'm Reading

   -- How Trump's Boat Strikes Could Lead to a Full-Scale War (The Free Press) 
 
   -- Trump Will Be on the Ballot as Much as Possible in 2026. It Didn't Work 
      in Miami. (Miami Herald) 
 
   -- Push for Turning Point USA on All Texas Campuses Comes as Restrictions 
      Form (Austin-American Statesman) 

About Me

I'm Damian Paletta, The Wall Street Journal's Washington coverage chief. I've covered Washington for 22 years as a reporter and editor. I've covered the White House, Congress, national security, the federal budget, economics and multiple market meltdowns.

WSJ Politics brings you an expert guide to what's driving D.C., every weekday morning. Send your feedback to politics@wsj.com (if you're reading this in your inbox, you can just hit reply). This edition was curated and edited in collaboration with Alistair Dawber and Alina Heineke. Got a tip for us? Here's how to submit.

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December 11, 2025 06:56 ET (11:56 GMT)

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