Stalemate Over Obamacare Tax Credits Amid Government Shutdown
The continuation of the federal government shutdown is casting uncertainty over negotiations for extending enhanced Obamacare tax credits, according to U.S. Representative John Moolenaar (R-MI 2). During a recent telephone townhall, Moolenaar emphasized the potential risks the prolonged shutdown poses to these discussions.
The impasse stems from Democrats’ insistence on combining government funding measures with an extension of these tax credits. They argue that without an extension, millions of Americans will face skyrocketing health insurance costs. Moolenaar, a member of the House Appropriations Committee, acknowledged that extending the tax credits is possible but warned that the ongoing shutdown threatens this prospect as the credits are set to expire in December.
“Every day they (Democrats) keep the government shut down in order to try and accomplish their agenda, it puts those credits, those extra credits, as well as other key priorities in danger,” Moolenaar stated.
The debate over the subsidies has been a significant factor prolonging the shutdown, which has entered its third week. With open enrollment for the Affordable Care Act starting November 1, Democratic leaders are pressing for a resolution to extend the subsidies before that date. For more details on the shutdown’s impact on healthcare, visit this link.
From his Washington office, Moolenaar expressed his support for keeping the government operational and criticized the shutdown’s effects on public services. He urged Senate Democrats to consider the House-passed short-term budget, which would extend government funding until late November. For further context on the shutdown’s broader implications, see this report.
“These types of political games are abhorrent,” he remarked. “I believe it’s well past time for the Democrats in the Senate and Americans especially to tell [Democratic Senate Majority Leader] Chuck Schumer to end their shutdown politics.”
Moolenaar commended the Trump administration for its efforts to mitigate some shutdown effects, such as reallocating Pentagon funds to pay military personnel and using tariff funds to sustain the Supplemental Nutrition Program for Women, Infants, and Children (WIC) through the end of the month. More information on these measures can be found here.
Responding to constituents’ concerns about federal workers’ pay during the shutdown, Moolenaar suggested that back pay for unpaid work is likely, aligning with historical precedents. “Over the years, traditionally in these shutdowns, federal workers have received back pay and I believe that will be the case, this time as well,” he assured.
On immigration, Moolenaar praised the administration’s policies for reducing illegal crossings and advocated for withholding federal funds from cities not cooperating with immigration enforcement. “That’s the one piece of leverage that we have on the federal level,” he explained, “If you’re not following the law, you may end up forfeiting some of your federal dollars because … there’s no excuse for not enforcing the law.”
Moolenaar also expressed approval of the new $250 million ballroom construction at the White House, noting its historical significance comparable to renovations by First Lady Jackie Kennedy. More about this project can be found here.
At over three weeks, the current shutdown has become the second-longest in U.S. history, as reported by Bloomberg.
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