Washington Policy Pulse: Obamacare, Bank Leverage, and AI Executive Order

Obamacare Subsidy Extension

• 🏥 A potential two-year extension of Obamacare subsidies is being considered by the White House, aiming to address Republican concerns.
• 💰 The proposal may include capping subsidy eligibility to individuals earning under 700% of the federal poverty level.
• 💸 It also aims to limit the availability of zero-premium options, which have seen significant enrollment increases but are cited by some as contributing to fraud.
• 📈 A tie-in with health savings accounts (HSAs) is also reportedly part of the plan, a long-standing Republican priority.

Financial Regulation Updates

• 🏦 The FDIC is set to finalize an enhanced supplementary leverage ratio (ESLR) rule for banks, potentially lowering it from 5% to 3% plus 50% of a GIB surcharge.
• 📉 The rule is expected not to exclude Treasuries from the denominator, impacting banks' capital requirements.
• 📊 The Federal Reserve is also reportedly finalizing a similar rule around the same time.

CFTC Leadership and AI Policy

• 🧑‍⚖️ Mike Seague is expected to be confirmed as the new chairman of the Commodity Futures Trading Commission (CFTC) in early December, likely maintaining the status quo for derivatives and crypto markets.
• 🤖 President Trump is anticipated to sign an executive order on artificial intelligence today, which may focus on challenging state-level AI regulations.
• ⚖️ However, legal experts suggest such federal actions might face court challenges without accompanying Congressional legislation.

Farm Aid and Defense Spending

• 🚜 A $13 billion farm aid package is expected to be announced the week after Thanksgiving.
• 📜 The language for the National Defense Authorization Act (NDAA) is now anticipated on December 1st, with ongoing negotiations over a $32 billion allocation.