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The Associated Press WASHINGTON President Barack Obama's health care law is snarled in another big legal battle, with two federal appeals courts issuing con- tradictory rulings on a key financing issue within hours of each other Tuesday. But the split rulings don't necessarily mean another trip to the Supreme Court for the Affordable Care Act. And White House spokes- man Josh Earnest immedi- ately announced that mil- lions of consumers will keep getting financial aid for their premiums — bil- lions of dollars in all — as the administration appeals the one adverse decision. In that first ruling, a di- vided three-judge panel in Washington called into question the subsidies that help millions of low- and middle-income people af- ford their premiums, say- ing financial aid can be provided only in states that have set up their own insur- ance markets, or exchanges. About 100 miles to the south in Richmond, Vir- ginia, another appeals court panel unanimously came to the opposite con- clusion, ruling that the In- ternal Revenue Service cor- rectly interpreted the will of Congress when it issued regulations allowing health insurance tax credits for consumers in all 50 states. Split appeals court deci- sions are a classic route to the Supreme Court. But in this situation, it's far from clear what will happen be- cause the administration still has a legal card to play. Since the Washington case was decided by a three- judge panel, the admin- istration will ask the full 11-member appeals court to hear the case. The full U.S. Court of Appeals for the District of Columbia Circuit has seven judges appointed by Democratic presidents, including four by Obama. If the full court comes out in favor of the adminis- tration, the prospect of Su- preme Court involvement would begreatlydiminished. On the other hand, if the full Washington court stays out of it or, after a hearing, es- sentially leaves the panel's decision in place, then the Supreme Court would al- most certainly weigh in. Democratic appointees also constitute a majority of the full appeals court in Richmond. Both cases are part of a long-running political and legal campaign to overturn Obama's signature domes- tic legislation by Republi- cans and other opponents of the law. In the Washington case, Halbig v. Burwell, a group of small business owners argued that the law au- thorizes subsidies only for people who buy insurance through markets estab- lished by the states — not by the federal government. That's no mere technical distinction, since the fed- eral government is running the markets, or exchanges, in 36 states. The Washington court agreed with that objection, in a 2-1 decision that could mean premium increases for more than half the 8 million Americans who have purchased taxpayer- subsidized private insur- ance under the law. Two judges appointed by Republican presidents voted against the administration's interpretationofthelawwhile one appointed by a Demo- cratic president dissented. The majority opinion concluded that the law, as written, "unambiguously" restricts subsides to con- sumers in exchanges estab- lished by states. That would invalidate an IRS regula- tion that tried to sort out confusing wording in the law by concluding that Con- gress intended for consum- ers in all 50 states to have subsidized coverage. "At least until states that wish to can set up ex- changes, our ruling will likely have significant con- sequences both for the mil- lions of individuals receiv- ing tax credits through federal exchanges and for health insurance markets more broadly," wrote Judge Thomas Griffith. "But, high as those stakes are, the principle of legisla- tive supremacy that guides us is higher still," he added. Justice Department spokeswoman Emily Pierce said the Washington court got it wrong. "We believe that this de- cision is incorrect, incon- sistent with congressional intent ... and at odds with the goal of the law: to make health care affordable no matter where people live," Pierce said in a statement. FINANCIAL AID Dueling rulings: Courts split on health law clash The Associated Press ATLANTA Georgia Repub- licans have only a few more hours before they have a Senate nominee in a race that will help decide which party controls the Senate for the final two years of President Barack Obama's administration. The campaigns of Rep. Jack Kingston and busi- nessman David Perdue con- tinued their last-minute ap- peals Tuesday as they look for any advantage after a nine-week runoff campaign. But voter sentiments suggest the fault lines in the race have been clear for weeks, if not months. Kingston supporters like his experience after 11 terms representing south- east Georgia in Congress. Perdue voters say it's time for something different. Perdue led the primary in May, but both men fell well shy of the major- ity necessary to win out- right. The winner faces Mi- chelle Nunn, one of the few chances for Democrats to pick up a Republican-held seat this fall as the party tries to maintain its ma- jority. Also on the Novem- ber ballot is Libertarian Amanda Swafford, a former councilwoman from Flow- ery Branch. Republicans, meanwhile, know they can ill afford to lose retiring Sen. Saxby Chambliss' seat if they hope to elect the six additional senators they need to run the chamber. Kevin and Nancy Langs- ton of Marietta both backed Kingston over Perdue. Nancy Langston, a 43-year-old business sys- tems analyst, said she's un- happy with Congress and the president. There's a temptation to go with some- one new, she said, "But with- out a record, it's hard to put your finger on somebody." Her husband, a 53-year- old payroll coordinator, also said he was comfort- able with Kingston's re- cord in Congress. Kingston often cited his 90-percent plus ratings from groups like the American Con- servative Union, National Rifle Association and Na- tional Right to Life. He also boasted an endorsement, along with more than $2.3 million in advertising, from the U.S. Chamber of Com- merce. Kingston and Perdue aides say they expect fewer than 500,000 ballots for the runoff. RUNOFF CAMPAIGN GOP voters to decide Senate candidate THEASSOCIATEDPRESS A sign greets voters before they step up to cast their ballot at a polling site Tuesday in Atlanta. Voters head to the polls on Tuesday to decide the U.S. Senate GOP runoff between Jack Kingston and David Perdue. The Associated Press WASHINGTON President Barack Obama's choice to lead the Department of Veterans Affairs pledged Tuesday to transform the beleaguered agency, say- ing that "systematic fail- ures" must be addressed. Robert McDonald cited problems with patient ac- cess to health care, trans- parency, accountability and integrity. "The seriousness of the moment demands urgent action," McDonald told the Senate Veterans Affairs Committee. "There is a lot of work to do to transform the department and it will not be easy, but it is essen- tial and can be achieved." McDonald, 61, a former Procter & Gamble CEO and an Army veteran, said taking care of veterans is personal for him. His fa- ther served in the Army Air Corps after World War II, and his wife's father was shot down over Eu- rope and survived harsh treatment as a prisoner of war. Another relative was exposed to Agent Orange in Vietnam and receives care from the VA, McDon- ald said, and a nephew is in the Air Force, deployed in the Middle East. If confirmed, McDonald said he would take a series of actions over his first 90 days "to deliver the needed reforms our veterans de- serve." He said he plans to lay out a veteran-centered vi- sion and improve commu- nication within the vast agency, which includes more than 300,000 employ- ees in all 50 states and the District of Columbia. 'SYSTEMATIC FAILURES' No mi ne e pl ed ge s to 'transform' VA By Alicia A. Caldwell The Associated Press WASHINGTON The Home- land Security Department said Tuesday it arrested 192 people along the Mex- ican border in South Texas on immigrant-smuggling charges and seized more than $625,000, part of the Obama administration's efforts to discourage and disrupt the flood of tens of thousands of people cross- ing the border illegally. The arrests, which took place under a crackdown called "Operation Coyote," took place over the last month and were part of a 90-day effort targeting smuggling groups. The White House has complained that smugglers are exploiting U.S. policies that, in practice, allow Cen- tral American kids to stay for years or indefinitely once they arrive, and it has proposed increasing penal- ties for smugglers. U.S. Immigration and Customs Enforcement said it also took into custody 501 immigrants in the country illegally. It said it seized the money from 228 bank ac- counts held by suspected human- and drug-smug- gling groups. The Rio Grande Valley in South Texas is the Border Patrol's busiest spot along the Mexico border. Border agents have arrested more than 200,000 border cross- ers in the area some Oct. 1. Most of the more than 57,000 children caught crossing the border without their parents or a guardian have also been taken into custody in the area. SOUTH TEXAS 19 2 ar re st ed i n im mi gr an t sm ug gl in g The Associated Press ALBUQUERQUE, N.M. The brutal slayings of two homeless men in Albuquer- que underscores the vulner- ability of transients, who prosecutors and police said Tuesday are often victim- ized but rarely report the crimes. One of the teens charged with beating the men be- yond recognition with cin- derblocks, bricks and a metal pole told police the trio had attacked more than 50 other homeless people in recent months. But police Tuesday said no one has come forward to report any potentially linked crimes, despite out- reach to the community and the groups that work with transients. Crimes against tran- sients are historically un- derreported, Sgt. Simon Drobik said. Meantime, prosecutors were preparing to seek first- degree murder indictments against all three teens, with the expectation of trying them in adult court. Because two are minors, a judge will have more lee- way in sentencing if they are convicted. 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