Democrats are divided over whether to conduct a full autopsy of their 2024 defeats or to redirect energy immediately to the 2026 midterms as Congress returns with a Jan. 30 government funding deadline. Key disputes include the future of ACA enhanced subsidies, a failed funding package after objections from Colorado senators over a threatened climate research center, and broader strategic disagreement about messaging and candidate selection. Other major stories include a Supreme Court rebuke of federalizing the National Guard in Illinois, a DOJ finding a circulated Epstein letter to be fake, new VA guidance restricting abortions for veterans, and a temporary reprieve for the hemp industry after federal rescheduling action.
Democrats at a Crossroads: Autopsy of 2024 or Full Focus on 2026 as January Deadline Looms
National Guard soldiers line up as they report to duty on mobilization day. (Gerry Broome, Associated Press file)
The Democratic Party is sharply divided over whether to conduct a full postmortem of its 2024 defeats or to shift immediately into campaign mode for the 2026 midterms. With lawmakers on holiday recess, both approaches will collide with an urgent practical test: most federal funding expires on Jan. 30 unless Congress and the White House agree on a continuing resolution or a longer-term appropriations package.
Funding Deadline, ACA Subsidies And Intraparty Tensions
Negotiations are already fraught. Enhanced Affordable Care Act (ACA) subsidies remain a major sticking point across both chambers, and moderate House members recently met with a bipartisan group of senators to try to extend the tax credits. A broader funding package fell apart before the holidays after Sens. John Hickenlooper and Michael Bennet objected to the administration’s threats to close a prominent, government-funded atmospheric and climate research center in Boulder, Colo., underscoring how policy fights can derail funding deals.
Cans of seltzer containing THC, the active ingredient in marijuana, speed down the canning line at Indeed Brewing in Minneapolis on Nov. 20, 2025. (Steve Karnowski, Associated Press)
Autopsy Debate: Look Back Or Look Forward?
Some Democrats insist an honest autopsy is essential. Activist and former DNC Vice Chair David Hogg criticized party leaders for declining to publish a formal analysis of the 2024 defeat and called for more investment in young progressive candidates. Others, including Sen. Richard Blumenthal, argue the party should focus its energy on winning in 2026 rather than rehashing the past. Former Vice President Kamala Harris urged party leaders to listen to voters and refresh the party’s message to be more authentic and relatable.
Early 2026 Primaries As A Bellwether
How several early primaries unfold will signal which direction voters want. In Maine, Gov. Janet Mills faces Graham Platner, who is backed by Sen. Bernie Sanders; in Texas, Rep. Jasmine Crockett’s entrance into a Senate contest has split opinion over whether her approach helps or hurts Democratic chances. Contests in Michigan and Minnesota will also be watched closely.
Travelers check their flight times on a information screen at O’Hare airport in Chicago, Dec. 23, 2025. (Nam Y. Huh, Associated Press)
Other Major Developments
- Legal and policy fights: Nineteen Democratic-led states sued to block a plan to bar gender-related care for minors from receiving Medicare or Medicaid funding.
- Security deployments: The administration approved sending 350 National Guard members to New Orleans to support state and local law enforcement ahead of major events.
- Student loans: The administration will resume wage garnishments for federal borrowers in default, with notices planned for roughly 1,000 people in early January.
Leading The Day
Supreme Court Ruling: The Supreme Court declined to pause a district court order that had temporarily barred the federalization and deployment of National Guard troops to Illinois, marking a setback for the administration’s efforts to send Guard troops to several Democratic-led cities. The court said the government had not identified authority to allow federal troops to execute civilian law enforcement in Illinois at this preliminary stage.
Economy and Tariffs: President Trump touted a 4.3% annualized Q3 GDP figure on social media, linking the strong growth to his tariff policy. The administration’s tariffs remain subject to ongoing legal challenges.
President Trump and first lady Melania Trump speak on the phone with children as they track Santa Claus’ movements with the North American Aerospace Defense Command (NORAD) Santa Tracker on Christmas Eve at the president’s Mar-a-Lago estate in Palm Beach, Fla., Dec. 24, 2017. (Carolyn Kaster, Associated Press file)
Health and Justice News: Former Sen. Ben Sasse announced a diagnosis of Stage 4 pancreatic cancer. Separately, the Department of Justice labeled a circulated postcard—purporting to show Jeffrey Epstein writing about President Trump—as fake, even as newly released Epstein records contain more references to Trump and numerous redactions.
VA Abortion Policy Change: A DOJ memo led the Department of Veterans Affairs to instruct regional leaders that the VA may not provide abortions or related counseling, including in cases of rape or incest, a move that drew sharp criticism from reproductive-rights advocates.
Hemp Industry Relief: After a spending bill provision threatened to classify many hemp-derived products as cannabis, a presidential order rescheduling marijuana and calling for protections for certain hemp-derived CBD products has given the industry time and leverage to push for clearer legislation and regulation.
Holiday Travel: The Transportation Security Administration expects a record holiday travel period, projecting about 44.3 million travelers between Dec. 19 and Jan. 4, with Dec. 28 likely the single busiest day.
As Washington returns from the holidays, Democrats must balance immediate governing priorities with strategic decisions about party renewal and electoral strategy. How they resolve that tension will shape the party’s prospects heading into a pivotal year.
