| | | |  | | By Bethany Irvine | | Presented by |  | | | With help from Rachel Umansky-Castro
|  | THE CATCH-UP | | | 
With just hours to go before the government shuts down, Democrats came out in full force today. | J. Scott Applewhite/AP Photo | TICK, TICK … BOOM: The government is barrelling toward a full shutdown in a matter of hours. As Washington braces for a seemingly inevitable impasse, both parties have spent the day locked in the blame game. Democrats came out in full force. In a joint news conference this morning, Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries pointed the finger squarely at Republicans, arguing their refusal to budge on health care subsidies is dooming the country to a funding failure. Jeffries also addressed the AI-generated deepfake that Trump posted of the two Democratic leaders last night. “Mr. President, the next time you have something to say about me, don’t cop out through a racist and fake AI video,” Jeffries told reporters, per POLITICO’s Nick Wu. “When I’m back in the Oval Office, say it to my face.” Other House Democrats said they “were livid about the video and its depiction of their leaders but were hopeful they would be able to stay above the fray.” So far, the shutdown fight has been the first such test for Jeffries, who has leaned into the fight and “the House Democratic caucus seems to be relishing in the shutdown swagger from their leader,” NBC’s Melanie Zanona and colleagues report. But on the Senate side, “some Democrats remain nervous that Schumer may cave.” But Republicans are still holding out against Democratic demands. This morning, Speaker Mike Johnson told CNBC that the push to revisit health subsidies is a “red herring” and “December policy issue” that could be explored closer to their expiration at the end of the year, POLITICO’s Meredith Lee Hill reports. Meanwhile, Senate Majority Leader John Thune told CNBC’s "Squawk Box” in a separate interview that he’s open to negotiations on the subsidies if his Democratic colleagues sign on for funding. “This is a made-up problem by the Democrats who desperately need to satisfy a political base that is hostile to Donald Trump,” Thune said. “Nothing more, nothing less.” Thune added that the GOP is open to weighing reforms to the health care subsidies, though he cautioned that they were “not going to discuss and negotiate it” as long as Democrats hold up the funding talks. “Release the hostage, and we will have that conversation,” Thune said. Thune echoed his comments on the Senate floor today in a rare back-and forth with Schumer, accusing Democrats of “hostage-taking.” The scene: “Thune brought a chart with him showing 13 different occasions under former President Joe Biden when Republicans voted with Democrats on similar, short-term bills to keep the government open,” per NBC’s Frank Thorp. “Schumer then borrowed the chart from Thune, saying it was true … But those bills, he said, were negotiated with Republicans.” Democrats have said from the beginning their main gripe is that Republicans forged ahead with a spending plan without bipartisan buy-in. A potential off-ramp: Sen. Mike Rounds (R-S.D.) is floating a one-year extension of the expiring Affordable Care Act subsidies, which would then be followed by a one-year phasedown to return the tax credits to pre-pandemic levels, POLITICO’s Jordain Carney reports. “Rounds isn’t advocating for an extension to be tied to the GOP’s seven-week stopgap spending bill, but instead said it could be linked to a larger government funding measure that could pass separately, sometime between Oct. 1 and Nov. 21.” The dire messaging: The Department of Housing and Urban Development is pushing all of the pressure on Democrats, proclaiming on at least one department website that “the radical left are going to shut down the government,” per POLITICO’s Katherine Hapgood. Good Tuesday afternoon. Thanks for reading Playbook PM. Drop me a line at birvine@politico.com.
| | A message from PhRMA: The biopharmaceutical industry is answering President Trump's call to put America first. PhRMA member companies are investing $500B in new U.S.-based manufacturing and infrastructure, providing financial assistance to 10 million patients annually, and announcing AmericasMedicines.com to connect patients with manufacturer direct purchase programs. Learn more about our investments and commitment to American patients and workers. | | | | | | 8 THINGS YOU NEED TO KNOW | | | 
Secretary of Defense Pete Hegseth speaks to senior military leaders at Marine Corps Base Quantico. | AP | 1. ON DEFENSE: In an incredibly rare gathering of top military officials in Quantico, Defense Secretary Pete Hegseth announced a revamp of military standards and gender rules that “could reduce the role of women in combat as he seeks to bolster an image of American might,” POLITICO’s Paul McLeary and Jack Detsch report. Speaking against a massive backdrop of an American flag, Hegseth directed that every combat job “return to the highest male standards” and lamented Joe Biden-era diversity programs promoting “woke combat.” Hegseth also called out “fat generals and admirals” and decried what he deemed as unprofessional grooming standards: “No more beardos,” he said. Trump also addressed the gathering, opening his remarks by noting an awkward silence in the room. “I’ve never walked into a room so silent before,” Trump said. “Just have a good time. And if you want to applaud, you applaud.” The president went on to praise his legal case against the AP over the “Gulf of America” designation, urged those gathered to fight the “enemy within” and lauded America’s nuclear capabilities. 2. MIDDLE EAST LATEST: Trump told reporters as he departed the White House today that he would give Hamas just “three or four days” to respond to the American peace proposal for which Israeli PM Benjamin Netanyahu signaled his support at the White House yesterday. Trump’s ultimatum comes as Qatari and Egyptian officials have reportedly presented Hamas negotiators with the proposal. Still, one diplomat noted to POLITICO’s Irie Sentner that there was no timeline set for a response and communicating with Gaza “could take hours or days, depending on the situation on the ground.” What Trump said: “We’re just waiting for Hamas, and Hamas is either going to be doing it or not, and if it’s not, it’s going to be a very sad end,” Trump said. The president also reiterated this morning that should Hamas reject the deal, he “would let [Israel] go and do what they have to do,” per NBC’s Chantal Da Silva. 3. JAGGED LITTLE PILL: Trump is expected to announce a new agreement with pharma-giant Pfizer today to lower Medicaid drug prices, per WaPo’s Dan Diamond. Trump is also set to unveil a website called TrumpRx, “to allow direct-to-consumer sales of medications at discounted rates.” The move is part of the White House’s broader effort to achieve sweeping pricing deals with drug manufacturers. Though “Democrats have said that they share Trump’s goals for lower drug prices,” they’ve also “criticized his reliance on executive orders to achieve them and called for comprehensive legislation.” 4. IMMIGRATION FILES: The U.S. is set to deport as many as 400 Iranians back to Iran in the coming months as a part of a deal between both countries, NYT’s Farnaz Fassihi and Hamed Aleaziz scoop. Iranian officials say the first U.S.-chartered plane carrying around 100 deportees took off last night from Louisiana and will land in Iran in the next few days. Though the identities of the deportees were unknown, Iranian officials said “that in nearly every case, asylum requests had been denied or the [deportees] had not yet appeared before a judge for an asylum hearing.”
| | | | Join us for a POLITICO Policy Outlook: Cybersecurity: incisive conversations on how the U.S. and its allies can counteract looming security risks without hampering the pace of technological innovation. Don't miss Sen. Marsha Blackburn (R-Tenn.), Kemba Walden, former acting National Cyber Director and more. Register Now. | | | | | 5. TRAIL MIX: As the White House continues its pressure campaign to see Republicans redraw congressional maps across the country, Trump is now threatening to primary New Hampshire Gov. Kelly Ayotte if she doesn’t follow through on a redistricting effort in the Granite State, POLITICO’s Andrew Howard and colleagues scoop. “Ayotte, the rare Republican with an independent streak, has dodged redistricting despite some support in the state Legislature.” And in Indiana, “Trump’s team is exploring repercussions for Republicans who don’t support its remapping effort that’s being backed by GOP Gov. Mike Braun.” Phasing Arizona: Rep. David Schweikert (R-Ariz.) has launched a gubernatorial bid, opening up a race for his competitive House seat and creating a potential two-way contest for the GOP nomination aiming to oust Democratic Gov. Katie Hobbs, The Arizona Republic’s Stacey Barchenger reports. The eight-term lawmaker said moving to the office of governor would offer a chance to help Arizonans without contending with partisan fights in Congress. “You can work as hard as you want,” Schweikert said. “You can bring as much talent to your team as you possibly can. We have a body that can't even pass its appropriation bills.” Eyes on Iowa: Rep. Ashley Hinson (R-Iowa) is drawing support from Sen. Tom Cotton (R-Ark.) in a new ad for her bid to replace outgoing Sen. Joni Ernst (R-Iowa), Fox News’ Paul Steinhauser scoops. America One Policies, a Cotton-aligned advocacy group, launched a new six-figure ad today highlighting Hinson’s credentials and describing her as the state’s “fighter in Washington.” New initiative: New Politics is launching The Next Mission Fund, a joint fundraising committee with plans to raise at least $2 million to support candidates “with proven service records in the most critical House pickup opportunities” for 2026. The initial eight House candidates backed by the committee include: JoAnna Mendoza in Arizona, Sarah Trone Garriott in Iowa, Matt Maasdam in Michigan, Kishla Askins in Nevada, Maura Sullivan in New Hampshire, Rebecca Bennett in New Jersey, Cait Conley in New York and Ryan Crosswell in Pennsylvania. 6. DALLAS SHOOTING LATEST: The family of a Mexican man “who was among three people shot at a Dallas immigration field office last week has died, becoming the second person killed in the attack,” AP’s Jamie Stengle reports from Dallas. “The family of Miguel Ángel García-Hernández, 32, said he died after being removed from life support, according to a statement provided through the League of United Latin American Citizens, a civil rights organization.” 7. CUTTING DEEP: “Trump’s USAID pause stranded lifesaving drugs. Children died waiting,” by WaPo’s Meg Kelly and colleagues: “A Post analysis of internal data from the first half of the year shows that supplies valued at more than $190 million were scheduled to arrive at distribution warehouses by the end of June. Instead, the analysis found, shipments worth nearly $76 million were not delivered, including the majority of medication needed to combat severe malaria. Some medicines never left the places where they were manufactured, and others were stranded in ports or customs facilities near the cities and villages where they were needed.” 8. FLORIDA MAN: “Florida officially hands over land for Trump library,” by POLITICO’s Gary Fineout: “The quick and unanimous vote caps off a mostly off-the-radar transaction pieced together quickly and not widely known about until last week … The land being handed over to the Trump foundation is seen as quite valuable, given its location right across the street from the arena used by the Miami Heat and being close to Biscayne Bay. The land transaction does place an obligation on the Trump foundation to commence construction of the library and a museum within five years.”
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Investing $500B in U.S. biopharma manufacturing and infrastructure, thousands of new jobs, and improved access to affordable medicines, see how we're putting America first. | | | | | | TALK OF THE TOWN | | IN MEMORIAM — “Otto Obermaier, Who Succeeded Giuliani as U.S. Attorney, Dies at 89,” by NYT’s Sam Roberts: “Mr. Obermaier served as the U.S. attorney for the Southern District of New York from September 1989 to February 1993, overseeing a jurisdiction ripe with targets ranging from Wall Street swindlers to major organized crime figures. Compared with Mr. Giuliani’s swashbuckling public persona and mixed record of pugnacious prosecutions, Mr. Obermaier was widely viewed as a temperate caretaker who also pursued corrupt unions and financiers, but less confrontationally and without his predecessor’s flair for dramatic arrests.” ONES TO WATCH — Time released its list of “The World’s Most Influential Rising Stars,” which included the likes of Sen. Ruben Gallego (D-Ariz.), Karoline Leavitt, Erika Kirk, Bari Weiss, Baltimore Mayor Brandon Scott, Rep. Byron Donalds (R-Fla.), Alex Bruesewitz and more. OUT AND ABOUT — Black Women’s Congressional Alliance and the British Embassy hosted the 4th Annual BWCA Brunch honoring Black women in public service on Sunday to close out the Congressional Black Caucus Foundation's Annual Legislative Conference at the Embassy's residence and gardens, where honorees included Rep. Sydney Kamlager-Dove (D-Calif.), Wyndee Parker, Donni Turner, Layla Brooks and Shelby Talton. SPOTTED: Reps. Janelle Bynum (D-Ore.), Emilia Sykes (D-Ohio) and LaMonica McIver (D-N.J.) James Roscoe, Senay Bulbul, James Harris, Millie Stone, Colin Moneymaker, Keenan Austin Reed, Moyer McCoy, Anna Palmer, Christina Henderson, Kristin Murphy, Omair Mirza, Isaac Keys and Kris Lofton. — Nelson CunnIngham hosted an event last night for French author Jeremie Gallon to celebrate the English edition of his book “Henry Kissinger, the European” ($28), including a discussion led by Richard Burt. SPOTTED: Bill Drozdiak, Charles Borden, Claire Kaiser, Eliana Broitman, Evelyn Farkas, Jack Bartling, John Mullen, Jonathan Winer, Ken Wainstein, Kellie Meiman Hock, Lee Feinstein, David Leiter, Marina and Joe McCarthy, Maury Devine, Michael Trager, Heather Podesta, Pedro Pablo Permuy, Peter Rashish, Richard Weiner, Vali Nasr, Melissa Hersh, Lynn Kuok, Karl Hofmann and Sam Frykholm. POLITICO MOVES — Diana Nerozzi is joining as a White House reporter from the NY Post. Alex Gangitano will be a politics reporter, joining from The Hill. Alec Hernández is coming on as a politics reporter after previously working at NBC. Erin Doherty is joining as a polling and campaigns reporter from CNBC. Kathy Wolfe is moving to White House editor after serving as editor for POLITICO’s transportation team. And Sam Benson is taking on a new role as politics reporter after a stint on the food and ag team. Full announcement MEDIA MOVE — Rebecca Rainey will be a legal reporter at Fisher Phillips. She most recently worked at Bloomberg Law. TRANSITIONS — Regan Hinson is now digital director for Rep. Brian Jack (R-Ga.). She previously worked at Bondi Partners and is a Rob Wittman alum. … Francisco Sabaté is now an account executive at Legis1. He previously worked for Rep. Barbara Lee (D-Calif.) and has been advising Chief AI. … … Ed McMullen is now a senior adviser at American Global Strategies. He is a former U.S. ambassador to Switzerland and Liechtenstein. … Hallie Coyne is now director of government relations at Hidden Level, a drone detection startup. She previously worked for Rep. Rob Wittman (R-Va.). Did someone forward this email to you? Sign up here. Send Playbookers tips to playbook@politico.com or text us on Signal here. Playbook couldn’t happen without our editor Zack Stanton, deputy editor Garrett Ross and Playbook Podcast producer Callan Tansill-Suddath.
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