Lawmakers Set to Leave for Weekend Without Shutdown Deal

Patrick McHenry, Bloomberg contributor and former republican congressman from North Carolina, lays out how he sees the path forward for both parties as the government shutdown drags on. He also reminisces on the 2 year anniversary of the votes to oust former House speaker Kevin McCarthy.

Millions of Americans who buy their own health insurance face higher premiums in 2026. Just how much higher will depend on who blinks first in the government-shutdown fight.

Enhanced Affordable Care Act subsidies put in place by Democrats in 2021 made health insurance basically free for many people during the height of the Covid-19 pandemic. Yet that financial cushion is set to end next year, with the tax credits resetting to their original, less-generous levels.

Democrats have refused to vote for any government funding legislation that doesn’t extend the richer subsidies. Republicans, who control the House and Senate, have said any deal on the tax credits must be struck separately.

The impasse represents one of the most serious threats to the gains in health coverage created by President Barack Obama’s signature health-care law since it was signed in 2010, and there are no clear signs about how it might be resolved. The standoff could put insurance out of reach for people who don’t have access to a workplace plan or aren’t eligible for other government health programs.

Republicans argue that the enhanced subsidies were always meant to be temporary, and that continuing them would amount to a handout to wealthy people and health insurers. A permanent extension would cost $350 billion over 10 years, the Congressional Budget Office estimates, and boost the number of people with health insurance by 3.8 million.

Senate Democrats on Friday rejected a Republican spending bill in a vote that will almost certainly push the US government shutdown into next week as the party stands firm in the face of President Donald Trump’s threats to fire thousands of federal workers and extract political revenge.

With the two sides locked in a standoff that raises the prospects of lengthy furloughs and a prolonged disruption in government services, senators left Washington for the weekend. Across the Capitol, House Republicans announced lawmakers would remain out of town for another week, with no votes planned until mid-October.

The leaders of both parties are sticking to their talking points as the first shutdown in nearly seven years stretches into its third day. Friday marked the fourth time Democrats have rejected a no-strings temporary measure to open the government through Nov 21. Republicans also blocked a Democratic alternative with $1.5 trillion in added spending, mostly on health care.

The resistance marks a turnabout for Democrats, who in March yielded to Trump’s demands amid concerns that the newly inaugurated president was too powerful and popular to take on. Now, however, the party is betting that their efforts to protect Obamacare premium subsidies and reverse Medicaid cuts will resonate with voters — and that the fight is worth the pain of Trump’s hard-ball tactics.

“The vindictive behavior by Donald Trump and his Republican minions as part of this shutdown only serves to highlight the cruelty of this administration,” House Democratic leader Hakeem Jeffries told reporters late Thursday.

--------

Watch Bloomberg Radio LIVE on YouTube

Weekdays 7am-6pm ET

Follow us on X

Subscribe to our Podcasts:

Bloomberg Daybreak

Bloomberg Surveillance

Bloomberg Intelligence

Balance of Power

Bloomberg Businessweek

Listen on Apple CarPlay and Android Auto with the Bloomberg Business app:

Apple CarPlay

Android Auto

Visit our YouTube channels:

Bloomberg Podcasts

Bloomberg Television

Bloomberg Originals