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BREAKING NEWS: A federal appeals court rules 2-1 that subsidies that helped people buy insurance at healthcare.gov are illegal.

WASHINGTON (Reuters) - A U.S. appeals court on Tuesday threw out a federal regulation that implements key subsidies that are vital to President Barack Obama's healthcare overhaul. The U.S. Court of Appeals for the District of Columbia Circuit accepted one of the main legal challenges to the policy by conservatives opposed to an expansion of the federal government. A three-judge panel returned the case to a lower court with instructions to rule in favor of appellants who had sued to overturn t...

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Reid: working with Republicans to reopen government, raise debt limit

U.S. Senate Majority Leader Harry Reid (D-NV) addresses reporters at a news conference at the U.S. Capitol in Washington, October 12, 2013.
U.S. Senate Majority Leader Harry Reid (D-NV) addresses reporters at a news conference at the U.S. Capitol in Washington, October 12, 2013.

WASHINGTON (Reuters) - Senate Majority Leader Harry Reid said he would work throughout Sunday with Senate Republican leader Mitch McConnell to get a deal to reopen the government and extend U.S. borrowing authority.

Reid, speaking on the Senate floor, also denied Republican charges that Democrats were trying to exceed spending caps from a 2011 budget law in the talks, adding that they were willing to support current levels through November 15. But in talks about a longer extension of government funding, Democrats have insisted on some relief from the across-the-board "sequester" spending cuts.

"We're in conversation today," Reid said of his discussions with McConnell. "I'm confident that Republicans will allow the government to open and extend the ability of this country to pay its bills. And I'm going to do everything that I can throughout the day to accomplish just this. It's important that we do this. We must do this. It's the height of hypocrisy to not pay our bills."

(Reporting by David Lawder; Editing by Bill Trott)

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