A heavy-handed effort by the president to take hostage insurer subsidies critical to the proper functioning of Obamacare — with the demand that Democrats cooperate to salvage Trump’s own failed health-care initiative — seems to be backfiring loudly. Soon after Trump made it clear (first via a statement from the Department of Health and Human Services, and then in his own words, in an interview with The Wall Street Journal) that he was indeed threatening to stop payment of the so-called Cost-Sharing Reduction subsidies (amounting to $7 billion in 2017 and an estimated $10 billion in 2018), congressional Democrats quickly struck back, reports The Hill:
Congressional Democrats are demanding that key Obamacare payments be included in the next spending bill, raising the possibility of a government shutdown if they are not.
The “spending bill” in question is the omnibus appropriations measure needed to keep the lights on in the federal government beyond April 28, the expiration date of the funding bill enacted last December. It has been the subject of extended negotiations involving the White House and both parties in Congress, aimed at removing “poison pills” that might produce a deadlock, a Senate Democratic filibuster, and a government shutdown.
Providing an appropriation for CSR payments would permanently take this particular weapon out of Trump’s hands — no matter how an underlying lawsuit, over the constitutionality of the Obama administration making the payments without such an appropriation, turns out.
So, for the moment, Trump’s attempted hostage-taking appears to be failing spectacularly. Far from forcing Democrats to the table to help him pass the Obamacare repeal-and-replace legislation he cannot get with Republican votes alone, he has emboldened them to fight back. Given significant Republican support (even among House Freedom Caucus members) for keeping the CSR payments flowing to avoid an individual-insurance-market meltdown, Trump may have gone into battle with his own flanks exposed. And he has now managed to add a new complication to the already-sensitive discussions aimed at avoiding a government shutdown, for which he would inevitably bear the major responsibility.
He will likely have to back down pretty quickly. Besides the low odds of success — and the terrible optics of risking health coverage for millions of Americans because he can’t get his own party in line — there’s yet another problem: If Trump goes to the mats on this issue, he’ll have to answer to all the other powerful interests who are deferring their own demands to keep the federal government open. Is this complicated gambit on health care really more important to Trump than defunding Planned Parenthood or getting money for a border wall? That’s one of the problems with hostage-taking: All your friends will want their demands included on the ransom note.
