The Note: GOP whiffs again on health care

PHOTO: Senate Majority Leader Mitch McConnell arrives on Capitol Hill in Washington, July 17, 2017.PlayAndrew Harnik/AP
WATCH The Note: Republicans' health care bill collapses

WHAT YOU NEED TO KNOW TODAY

  • No bill: Senate Majority Leader Mitch McConnell conceded Monday night that the GOP's effort to repeal and replace Obamacare "will not be successful" after two more conservative Republicans came out against the bill. ABC News' Jonathan Karl reports that the White House was blindsided by Sens. Mike Lee and Jerry Moran announcing their opposition.
  • McConnell's backup plan: "repeal and delay" is the new "repeal and replace." President Trump is on board but a majority will still be hard to muster for even an incomplete repeal.
  • Despite the tough talk, President Trump and his administration certified that Iran has been complying with the nuclear deal, but warned they'll be enforcing new sanctions for Iran's "misbehavior" in the country's region.
  • A new battle on the horizon: House Republicans have unveiled their 2018 budget blueprint, which includes $621.5 billion for defense spending and hopes to tackle tax overhaul.
  • "I think, quite frankly, it's probably against the law in addition to being inappropriate" if anyone accepted opposition research from Russia, said New Jersey Gov. Chris Christie.
  • THE TAKE with ABC News' Rick Klein

    "Repeal and delay" lacks the powerful messaging punch that Republicans honed over seven years where they won more races than they lost. But as a practical matter, it's just as dangerous politically and could be more problematic in terms of policy. (You thought insurance companies disliked the replacement proposals? How do you run a business not knowing what the rules will be at all?) President Trump is casting this as a way to force Democrats to the table; if the starting point is Obamacare's winding down, the argument goes, everyone has a stake in crafting a new system. Democrats, fresh off (another) win keeping Obamacare in place, are in no mood to negotiate. But as health-care ovehaul enters another not-dead-yet phase, they would be well advised to remember what did in "repeal and replace" again and again in 2017. Activism on the left set the stage. But the drama was on the right, as conservative groups and elected officials held their own, even against the collective weight of the Trump army, Mitch McConnell, and a GOP establishment and donor base pleading for promises to be kept. Yes, "repeal and replace" is dead. But conservatives killed it. That establishes a formidable power source in the age of Trump, and another round of chances for Republicans to get their policy goal.

    A NEW FOCUS FOR REPUBLICANS

    Republicans are proposing a $4 trillion dollar budget for 2018 that includes deep cuts and reshaping to mandatory social programs, like Medicaid and food stamps, which they say have ballooned to unsustainable levels. The House Budget Committee released a blueprint of its budget resolution and plan to mark-up its bill Wednesday. According to the summaries, the overall deficit reduction in the Republican draft is based on a 2.6 percent economic growth rate over the next decade, higher than the 1.9 percent the Congressional Budget Office estimated. The resolution also has projected future savings that assume Congress passes the House version of Republicans' repeal-and-replace health care bills. The House committee says its budget commits significant resources to "border construction." Top-line numbers from the proposal: $622 billion on defense and $511 billion on non-defense discretionary spending in 2018. Budget resolutions are nonbinding. It is still possible for lawmakers to appropriate spending at higher levels even if they pass a resolution resembling this plan. As for the resolution's prospects of passage, though, conservatives in the House already say they want deeper cuts included, ABC News' MaryAlice Parks notes.

    QUOTE OF THE DAY

    "I can tell you, we hope John McCain gets better very soon because we miss him. He's a crusty voice in Washington." - President Trump

    WHAT TO WATCH TODAY

    Justice Action Network, Google and the Brennan Center for Smart Justice present Women Unshackled, the first-ever national forum focused on policy solutions to female incarceration. Sen. Cory Booker, Sen. Kamala D. Harris, Oklahoma Gov. Mary Fallin and Rep. Mia Love join others to discuss the unique challenges facing women in the justice system. You can watch a livestream of the event here that goes from 9 a.m. to 4 p.m. at the Newseum.

    NEED TO READ with ABC News’ Daksha Sthipam

    Spicer repeats debunked line about reason for Donald Trump Jr.-Russia meeting. Sean Spicer appeared to mischaracterize the motivation for Donald Trump Jr.'s controversial meeting with a Russian lawyer during the presidential campaign. "There was nothing, as far as we know, that would lead anyone to believe that there was anything except for discussion about adoption and the Magnitsky Act," Spicer said, "but I would refer you back to counsel on that one." http://abcn.ws/2usp7mp

    During "Made in America Week," White House defends imported Trump products. As the White House kicked off its Made in America Week Monday, President Donald Trump's spokesman defended the fact that goods bearing the Trump name are frequently produced abroad. "I think what's really important is the president's agenda -- regulatory relief and tax relief -- are focused on trying to make sure that all companies can hire here, can expand here, can manufacture here," said Spicer. http://abcn.ws/2tzfcqJ

    Trump administration allowing up to 15,000 more foreign worker visas. These 15,000 H-2B visas are in addition to the 33,000 that were available for the second half of the fiscal year, which runs from April 1 to Sept. 30, according to DHS. This "one-time deal" has a new requirement, however. Businesses must affirm that they would "suffer irreparable harm" or permanent and severe financial loss if they were not to receive all the H-2B visas they applied for. http://abcn.ws/2u5jRUY

    WHO'S TWEETING?

    @realDonaldTrump: Republicans should just REPEAL failing ObamaCare now & work on a new Healthcare Plan that will start from a clean slate. Dems will join in!

    @shearm: On the day health care bill dies, @realDonaldTrump claims he has signed more bills into law than anyone. He hasn't. http://nyti.ms/2uCgM04

    @NYTnickc: So @JoshuaGreen book reports Christie fired from transition for trying to force a germ-y cell phone call with Obama http://dailym.ai/2vvi6xR

    @Allie_Kite: NEW: Kris Kobach under investigation by Kansas Supreme Court disciplinary office -- http://bit.ly/2t9gA3O … #ksleg

    @MonmouthPoll: NATIONAL POLL: 41% say Trump should be impeached – 24% said same about Nixon at start of Watergate http://bit.ly/2uAWbJi

    The Note is a daily ABC News feature that highlights the key political moments of the day ahead. Please check back tomorrow for the latest.