It’s Their Fault
This is shaping up to be a day ripe for blame-bouncing, furlough-unfurling, and perhaps workforce-cutting as the federal shutdown crosses into its second 24 hours.
Furloughs vs. firings will be a dynamic to watch after White House Budget Director Russell Vought talked to Republican lawmakers about terminations coming this week.
A mid-morning press conference will give Speaker Mike Johnson (R-La.) a chance to expand on comments from a TV interview about the lapsed funding creating a program-slashing opportunity.
Republicans can “do some things that we would not otherwise be able to do, because we would never get Democrat votes for them,” Johnson told Fox Business yesterday. The White House “gets to decide now what services are essential, what programs and policies should be continued, and which would not be a priority,” he said.
Elephant-Like Memories?
Jonathan Tamari wondered how much it will matter in the long run if Republicans and Democrats spread the word that the other party is to blame for the pause in some government operations.
“This is gonna blow up in their face. It’s gonna be a flop,” said Sen. Lindsey Graham (R-S.C.). People “may agree with your policy goal. They don’t like shutting down the government.”
Josh Schwerin, a Democratic strategist, disagreed, saying voters “will remember that one party fought for lower health-care costs and the other party raised them.” Read More
Despite the heat being generated, Ken Tran and Jack Fitzpatrick write in this morning’s BGOV Budget that there are “glimmers of interest in a possible compromise.”
Shutdown Catch-Up
More from our suite of coverage of the shutdown’s impact so far:
- Aggressive shutdown moves by the Trump administration could require even bigger concessions to get the government back to work, and some Republicans say there’s a risk of going too far.
- Manufacturers will have to wait until after the shutdown for the EPA to review their requests to make or import new chemicals, Pat Rizzuto reports.
- First came the transportation cuts to Democratic-run New York. Then came $8 billion in reductions for green energy projects in Democratic-leaning states as the White House puts pressure on the minority party.
- Possible disruption to a long-delayed project for New Jersey commuters immediately became fodder in a governor’s race happening next month, Zach Williams reports.
- The Interior Department said oil drilling permitting won’t stop during the shutdown.
- Sen. Catherine Cortez Masto (Nev.) stayed on-brand in splitting from fellow Democrats over the shutdown, reports Lillianna Byington.
Obamacare Gets an Industry Push
Health insurers were seizing the moment even before the shutdown drew attention to arguments for renewing a tax credit that brought them a lot of business from Americans who otherwise couldn’t afford medical insurance.
They’ve been running an ad campaign on Hulu, Google, and Facebook for more than a week and a half. It’s part of a lobbying effort that’s both separate from the partisan talking points and compatible with the partisan messaging.
Plus, a few Republican senators say they’re willing to broker a compromise on the subsidies — in exchange for at least a temporary federal funding extension. “We’re telling the Democrats, ‘You’ve got support on the other side to fix the issues that you have a concern about, but it’s going to take time to negotiate those through,’” said Sen. Mike Rounds (R-S.D.). Read More
Also Read:
- ACA Premium Fight Sparks Coverage Loss Fears From Health Leaders
- Insurers Warn of Risks as Rural Hospitals Drop Medicare Plans
Fed Breathing Room
The Supreme Court gave the Federal Reserve a little breathing room with its refusal to allow the immediate ouster of Lisa Cook. Now Fed watchers are trying to parse what may happen next.
For instance, will the administration take another route to reduce the Fed’s autonomy? One economist suggested an agreement in place since 1951 could be revisited to upend operational independence. Read More
Before You Go
Reshaping Higher Ed: The administration is offering preferential access to federal funding to top-tier universities that cap international students, ban using race or sex in hiring, and require standardized testing for admissions. Letters to a group of top universities say those resistant to the demands “are free to develop models and values other than those below, if the institution elects to forego federal benefits.” Read More
Raising Hopes: “MAKE SOYBEANS, AND OTHER ROW CROPS, GREAT AGAIN!” President Donald Trump posted yesterday on social media, announcing that he’ll make China’s refusal to buy US-grown soybeans the topic of conversation with Chinese President Xi Jinping. The two will see each other at the Asia-Pacific Economic Cooperation summit at the end of this month. Read More.
Competitive Pricing: There’s so much demand for labor and material in Southern California that the cost of building a private high-speed passenger railroad to Las Vegas has swelled by nearly 35%. Data centers, power plants, and transportation projects are being blamed. Read More
Minus the Subsidy: Car companies are stepping in to preserve discounts and smooth the sell-down of existing electric vehicle inventory after the $7,500 federal tax credit ended this week. Hyundai, for instance, said it’s dipping into its own pocket to fund the $7,500 cash rebate on one model and discounts on others. Read More
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