Congress Faces Crucial Health Care and Defense Policy Decisions as Sessions Wrap

As Congress approaches the end of its 2025 session, legislative focus intensifies on health care and defense policy. The annual National Defense Authorization Act (NDAA), a critical Pentagon policy bill, remains a central priority with lawmakers working to finalize a measure authorizing over $900 billion in national security spending, including a 3.8% pay raise for servicemembers. Negotiations also tackled contentious issues such as repealing long-standing war powers laws and debated but ultimately excluded provisions related to military base renaming and expanded in vitro fertilization coverage for military families. Meanwhile, the expiration of Obamacare subsidies presents a significant policy and political challenge. Senate Republicans remain divided on how to address the ACA subsidy cliff, with disparate proposals from GOP senators Bernie Moreno and Susan Collins advocating a two-year extension with income caps and mandatory minimum payments, contrasting with Democrats' three-year extension plan. Despite some rank-and-file Republican support, Senate GOP leadership has yet to coalesce around a unified alternative, limiting the prospects for bipartisan resolution. House Republicans show varying levels of engagement, with some moderates pushing for a discharge petition to advance an ACA subsidy extension despite limited chances of success. Speaker Mike Johnson signals intent to bring a health care bill to the floor, though passage appears unlikely. The fractured GOP approach highlights intra-party tensions as the subsidy expiration deadline nears. In defense, the NDAA includes a bipartisan effort to repeal the 2002 Iraq War and 1991 Gulf War Authorizations for Use of Military Force (AUMFs), signaling a shift toward updated war powers legislation. However, other contentious elements, such as expansive housing supply measures and expanded IVF coverage for service members, were dropped amid inter-chamber disagreements. Legislative timing is tight, with the House expected to consider the NDAA imminently to allow the Senate to act before mid-December. This period underscores the high stakes for key policy areas influencing both national security and healthcare sectors, with implications for regulatory frameworks, budget allocations, and ongoing political negotiations within Congress.