Appropriations to fund most of government have lapsed for a month. Congressional Democrats insist subsidies for Affordable Care Act health insurance plans be renewed in any extension of funding. Republicans won’t negotiate on health insurance until funding is approved. In October, the Senate voted down reopening government 20 times. The House last voted on September 19.
With Congress paralyzed by partisanship, President Donald Trump’s deal-making skills are key to breaking the logjam. He has been minimally involved, preferring international diplomacy and unhelpful suggestions to change Senate Rules instead of bipartisan negotiations.
The pain of the shutdown is not spread evenly. President Trump has continued to pay military service members and law enforcement and arranged financial support for Argentina. A federal judge ordered the administration to use reserves to continue nutrition assistance. Millions of federal workers have lost a month’s pay, many remaining on the job, including air traffic controllers whose patience seems to be running thin. With health insurance marketplaces now open, millions are discovering the cost increases Democrats have warned are the consequence of congressional inaction.
If mid-term elections Tuesday in Virginia, New Jersey, and California are decisive in one party’s direction or the other, it could prompt Congress and the President to seek resolution of the impasse. If the results are mixed, they are less likely to motivate negotiations.
President Trump notched several accomplishments over his Asia tour last week, but experts are alarmed by his willingness to negotiate access to advanced computer chips with China, an issue previously identified by the President as a national security matter. Negotiating national security in trade talks has been forbidden in prior administrations.
The Federal Reserve cut interest rates one-quarter of one percent last week, prioritizing a response to weak job growth over rising inflation. Divisions on the board cloud the outlook for another rate cut in December.
