The U.S. is confronting a fresh cycle of uncertainty after President Donald Trump and Congress failed to strike an agreement to keep government programs and services running by Wednesday’s deadline. Disagreement stemmed from a deadlock in Congress over Democratic demands over health care — and Republican efforts to kick that can down the road.
At issue are tax credits that have made health insurance through the Affordable Care Act more affordable for millions of people since the COVID-19 pandemic. The credits are set to expire at the end of the year if Congress doesn’t extend them — which would more than double what subsidized enrollees currently pay for health insurance premiums, according to a KFF analysis.
Here’s what to know:
- What a government shutdown means: When a lapse in funding occurs, U.S. law requires federal agencies to cease activity and furlough “non-excepted” employees. Excepted employees stay on the job but don’t get paid until after the shutdown ends.
- Health care demands: Democrats want the health care subsidies extended now, for Republicans to reverse the Medicaid cuts that were enacted over the summer, and for the White House to promise not to rescind congressional spending. Republicans say there’s still time to negotiate on health care this year, but stopgap funding for the government is the priority.
- Some federal services will halt: All administrations get some leeway to choose which services to freeze and which to maintain in a shutdown. FBI investigators, CIA officers, air traffic controllers and agents operating airport checkpoints keep working. Those programs that rely on mandatory spending also generally continue during a shutdown. Trump’s immigration crackdown will also continue.
- What happens next: Senators are back at work this morning. Senate Majority Leader John Thune says he’s hoping that enough Democrats will change their votes to reopen the government and end the shutdown soon.
:max_bytes(150000):strip_icc()/GettyImages-2237752313-adbcd2512b3348c583eef2d81e2517fe.jpg "Stock Indexes Shake Off US Government Shutdown; S&P 500 Hits All-Time High; Nike Surges After Surprising Sales Growth")
