Upping the Ante

Raising Redistricting Stakes, Democratic Dilemma, Federal Funding Fight

Good morning from Martha’s Vineyard, Massachusetts. 

Redistricting. Redistricting continues to be the word of the day, and, depending on where this goes, it may be the word of the year!

From a new map in Texas, the redistricting battle has expanded across the country, and now House Republicans—with the full encouragement of President Donald Trump—are looking to add a dozen or more House seats. In addition to the five seats in Texas, the GOP is targeting three new seats in Florida, one each in Missouri and Indiana, as well as two or three in Ohio. A Supreme Court decision on redistricting in Louisiana under the 1965 Voting Rights Act could also yield a more favorable Republican map.

Trump and his political team are doing everything they can to avoid a Democratic House and cushion the usual cyclical turn of midterms against the party in power. This is to prevent the endless investigations, spending showdowns, and potential impeachments from a Democratic House, as well as to ensure that the GOP-run House would remain an effective arm of the White House, continuing to let Trump drive the agenda.

Democrats have their hands tied; between ceding power to independent redistricting commissions and, frankly, effective gerrymandering of their own, Democrats have limited options.

California Democratic Gov. Gavin Newsom—a 2028 hopeful—has a plan. However, the plan requires voters to back his efforts in a special election, an expensive and uncertain prospect, but one that could yield five new blue seats, possibly negating the proposed Texas map.

Other possibilities for Democrats? 

  • Perhaps one seat in Maryland, but a court shot down a similar map in 2022 as an illegal partisan gerrymander.

  • Maybe Illinois, although Democrats have already heavily gerrymandered the state in their favor.

  • Democrats could, perhaps, get favorable court rulings in Wisconsin and Utah, but that remains to be seen.

  • Other blue states would have to amend their constitutions to play. The deadline has passed to do this before the 2026 elections in New Jersey and Colorado. Democrats lack the votes in Washington State.

What does all that mean? 

It looks fairly easy for Republicans to get 12 or more new seats. Democrats can get two or three without amending a state constitution, and as many as eight if Newsom’s California plan works. This could mean the difference between a GOP-held House and a Speaker Hakeem Jeffries.

Back in New York, Governor Kathy Hochul is also up in arms: in an op-ed in the Houston Chronicle, Hochul wrote, “Up until now, Democrats have treated our political system like it’s still governed by norms, guarded by limits and rooted in fairness. Rules were meant to be followed. It hurts to say it, but that era has come to an end.” Hochul also hosted several members of the Texas House in an effort to elevate their cause.

While their options are limited for 2026, New York Democrats are planning ahead: Deputy Senate Majority Leader Mike Gianaris and Assembly Member Micah Lasher introduced a new constitutional amendment permitting New York to redraw its House map mid-decade, but only after another state strikes first. The proposal requires passage from two subsequent legislatures, as well as an affirmative vote by the public. Therefore, the soonest it could be implemented would be in time for the 2028 midterm elections.

We asked Monday Morning Memo readers if New York State should revisit redistricting ahead of the 10-year cycle in response to similar action in Texas. See the results of our poll and comments below!

It is also worth noting that another important consequence of this gerrymandering frenzy is that it will further accelerate the extinction of political moderates, as their swing districts disappear, and an already hyper-partisan Congress will become even further divided. Any hope of compromise will disappear as members focus on primary threats from the extreme wings of both parties.

That may explain why many frontline GOP members—especially those who may become collateral damage—are not joining President Trump and House Speaker Mike Johnson (R-La.) in calling for a redistricting fight. In New York, Reps. Mike Lawler, Nicole Malliotakis, and Nick LaLota are all at risk if New York engages in retaliatory redistricting. Lawler, reading the writing on the wall, introduced legislation last week to ban “partisan gerrymandering and mid-decade redistricting.” Lawler added, “This is fundamentally why Congress is broken. There are very few competitive districts, resulting in most members focusing on primaries rather than engaging in a general election.” Malliotakis has also urged her GOP colleagues to exercise caution, offering, “I may differ in opinion from many of my colleagues on this, particularly the ones from Texas. I’m not somebody who’s supportive of any type of gerrymandering.”

Which political party is more unified, Democratic or Republican? Scroll down to vote in our poll!

Hochul, for one, is not buying the principled grandstanding from her state’s GOP congressional delegation, particularly Lawler, saying, “This is a guy who’s now saying, ‘I’m going to introduce a bill to get it changed.’ The same guy who promised a full restoration of the state and local tax deduction comes back far short of that and spins it as a win that everybody's buying. He has no power. He won't get it done. And I'm not sympathetic because he was silent.” 

Politics aside, there is at least ONE thing New York Democrats and Republicans agree on: the need for the Trump administration to maintain the Medicaid revenue the state generates from a new tax on managed care organizations, known as the MCO tax. The plan, which received final approval in the waning days of the Biden Administration, allows New York to implement a new tax on managed care organizations reimbursed using federal matching funds. Now, a new proposed rule from the Center for Medicare and Medicaid Services (CMS) would revoke the reimbursement authorization from states that have received approval within the last two years, including New York. That decision would put a $3.7 billion hole in New York’s budget over the next two years, with nursing homes, slated to receive $830 million, as the biggest losers. All seven GOP House members from New York signed onto a joint letter urging the Trump Administration to spare the MCO tax, writing, “The proposed rule would effectively invalidate New York’s newly approved Managed Care Organization (MCO) tax immediately, while permitting older arrangements in other states to be phased out over time. This approach undermines the flexibility Congress included and would place hospitals, nursing homes, and other healthcare providers in New York at a serious disadvantage. Implementing the full transition period would provide a fair and balanced path forward, allowing providers to adapt while upholding the policy’s long-term goals.” Whether Trump and his newly appointed CMS Director, Dr. Mehmet Oz, get behind that approach remains to be seen. 

In Washington, D.C., Congress is officially on August recess until after Labor Day. When they return, members will have just weeks to negotiate a government funding bill before the September 30th deadline. Both the House and Senate have already passed a handful of the twelve individual bills that make up a full fiscal year funding package, but leaders in both Houses have acknowledged they will likely need to resort to a stopgap funding bill, known as a continuing resolution (CR), to avoid a shutdown in October. Even that could prove difficult as different factions of the GOP have made ultimatums that are impossible for House Speaker Mike Johnson (R-La.) and Senate Majority Leader John Thune (R-S.D.) to reconcile. 

GOP spending hawks have been advocating for a year-long CR as a backdoor way to keep funding levels flat for an entire fiscal year, while more moderate members would prefer a CR through November or December to buy enough time to negotiate a full federal spending package. Other lawmakers hope to include earmarks or funding for specific projects in members’ districts in the final package. House Freedom Caucus Chair Andy Harris provided some insight into his thinking, offering, “I have no problem with yearlong CR. It keeps spending at current levels; it doesn’t increase spending. Just get it all over with. Just do a full-year CR, and I personally think that you could put the community project funded projects in it. We could do that if we had to.” 

Senate Minority Leader Chuck Schumer (D-NY) and House Minority Leader Hakeem Jeffries (D-NY) sent a letter to Thune and Johnson last week formally requesting a “Big Four” meeting to jumpstart negotiations on funding the government. The letter reads in part, “As Leaders of the House and Senate, you have the responsibility to govern for all Americans and work on a bipartisan basis to avert a painful, unnecessary shutdown at the end of September. Yet it is clear that the Trump Administration and many within your party are preparing to “go it alone” and continue to legislate on a solely Republican basis.” 

The Trump Administration might not be in the mood to negotiate after Schumer has ramped up his recent efforts and hardball tactics to block Trump’s agenda. Schumer and Trump failed to come to an agreement that would have expedited the confirmation process for dozens of Trump’s nominees, increasing the likelihood that Senate Republicans will simply change the Chamber’s confirmation rules rather than continue to negotiate with Democrats. Schumer said Trump “threw in the towel, sent Republicans home, and was unable to do the basic art of negotiating. He went home with nothing.” Expect significantly more wrangling on appointments and confirmations when they return. More here.

Finally, can’t afford a wedding? Get a sponsor!

That’s what a Brooklyn couple did, when they entered and won a contest thrown by Hellmann’s mayonnaise.

Their prize? An unforgettable celebration featuring a deliciously saucy reception, a professional photographer, and $5,000 for travel expenses.

 Listen on your favorite platform!

Jack breaks down the challenges of reopening redistricting in NY & more in his Monday Morning Minute:

🎙️What’s at stake in the redrawing of lines?

🎙️Can Cuomo win the NYC mayor’s race? How does Mamdani stay on top?

🎙️Federal budget roadblocks & Trump’s growing war chest

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Which political party is more unified, Democratic or Republican?

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Results of the Last Poll

Should New York State revisit redistricting ahead of the 10-year cycle in response to similar action in Texas?

On the OD&A Bookshelf. . . Beach Edition!

Beach read: I am rereading The Age of Jackson by Arthur Schlesinger. Schlesinger is a favorite historian of mine, & I love his writing, especially his take on Jackson, who has always been a hero of mine.

Andrew Jackson, the economic populist whose personal popularity allowed him to transform a political party & a rapidly changing nation, feels very relevant today. Jackson’s principled stands and defense of the union, unfortunately, appear to have no contemporary parallels.

I’m also enjoying Georges Simenon’s Maigret series. Complex plots, well-written, but still light enough for the beach.

Elsie, Thomas & Martha Washington in MVY

Summer fun: The O’Donnell Family is spending a few days in Martha’s Vineyard. We love it here. There’s something about taking a ferry to the island that helps me leave the rest of the world behind. The speed on the Vineyard is a great contrast to our life the rest of the year, and the vibe is peaceful and relaxing. Beach, boats, ocean, sunshine, and family make me very happy and, at least somewhat, relaxed.

This Day in History

August 11, 1885:

Wealthy Americans donate $100,000, the amount needed to finish construction of the pedestal for the Statue of Liberty.

No federal funding was provided because Congress couldn’t agree on a spending package, and NY Gov. Grover Cleveland would not allow NYC to pay for the construction.

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Worth a Read

The 31 Most Beautiful Towns in America

Consider exploring one of these charming smaller destinations. Their slower pace and refreshing absence of crowds might provide the perfect relaxing escape you seek!

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