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Governors call for Congress to avert federal shutdown but differ on how

The U.S. Capitol on Oct. 9, 2024. (Photo by Jane Norman/States Newsroom)

The U.S. Capitol on Oct. 9, 2024. (Photo by Jane Norman/States Newsroom)

State officials from both parties urged Congress to avoid a government shutdown Monday, though Republicans were pushing harder for an extension of current funding.

Though they sometimes clash with federal directives, states depend on funding from the federal government for numerous programs. A government shutdown, which would have a wider effect than any in recent years because Congress has not passed any of the dozen annual funding bills, would delay or cancel that support.

The National Governors Association issued a statement Monday from its chair and vice chair, Oklahoma Republican Gov. Kevin Stitt and Maryland Democratic Gov. Wes Moore, calling on Congress to come together to avoid a shutdown. The bipartisan group comprising all the nation’s governors generally avoids commenting on controversial issues that divide its membership.

“The consistent use of political brinksmanship when it comes to our government funding does not serve our states, territories or our people well,” they wrote. “It is long past time to stop kicking the can down the road and return to the regular order of debating and passing a budget, but at this juncture, Congress has a responsibility to ensure the government remains operational. We urge federal leaders from both sides to work to set aside political games and pass a budget that reflects the values and promises states commit to every day.”

While members of both parties expressed a desire to avoid a shutdown, they proposed different solutions. 

Republicans urged lawmakers to approve the “clean” continuing resolution to keep the government funded at current levels, while Democrats backed up their party’s position in Congress to seek an extension of health insurance subsidies in a funding bill.

“Allowing a shutdown would consequently and needlessly disrupt our economies, threaten public safety, and undermine public confidence in our institutions,” 25 Republican governors wrote in a Monday letter to congressional leaders. “Our families and communities would feel the pain with immediate effect and confusion.”

Partisan differences over shutdown extend beyond the Beltway

The U.S. House, where Republicans hold a majority, passed a stopgap spending measure this month, but it failed to clear the 60-vote threshold needed to pass the U.S. Senate, as Democrats have declined to support a proposal that does not address health care costs. 

At the state level, the debate has fallen along similar lines. 

“Put simply, a  government shutdown should not be used as political leverage to pass partisan reforms — these are not chips Congress should be bargaining with,” the Republican governors wrote. “The proposed budget extension is a straightforward, bipartisan solution. There are no gimmicks or partisan poison pills; it’s a clean, short-term funding measure that both parties have historically supported.”

Republican state attorneys general sent a similar letter, which noted a shutdown would affect state and local law enforcement.

Democrats throughout the country, though, echoed congressional messaging that Congress should extend the health care subsidies that were included in the 2010 health care law known as the Affordable Care Act, and take more steps to reduce the cost of health care. Republicans’ failure to include such provisions would put blame for the shutdown on the GOP, Democrats have said.

“Instead of supporting a plan that would lower costs and stop making health care more expensive, Senate Republicans are blindly following Donald Trump and pushing the country towards a devastating government shutdown,” Sen. Kirsten Gillibrand of New York, who chairs Senate Democrats’ campaign organization, said in a Sept. 19 statement.

In a press release last week, the Democratic Governors Association touted efforts by its members to call for extending subsidies.

“DGA Chair Kansas Governor Laura Kelly, Delaware Governor Matt Meyer, and New Mexico Governor Michelle Lujan Grisham called on Congressional Republicans to extend critical Affordable Care Act subsidies that 22 million Americans rely on and avoid a government shutdown,” the release read. 

“Without action from Republicans in Congress, health care costs for hardworking Americans who rely on these subsidies will balloon by an average of over 75 percent.”

As government shutdown looms, Wisconsin Dems worry about constituents losing health care

Rep. Mark Pocan and Sen. Tammy Baldwin | Collage of screenshots via Zoom

Last time the government was on the brink of a shutdown, Democratic leaders rushed to negotiate with Republicans and reached a deal to keep federal agencies open and basic services flowing. Now that deal is about to expire and there seems to be little appetite for compromise in Washington. 

President Donald Trump has directed Republicans “don’t even bother dealing with” Democrats, and the House rammed through a near-party-line resolution to keep the government open that ignored Democratic demands and had no Democratic input at all. 

“We’re not sure how serious they are about actually trying to have something done by September 30,” Wisconsin Democratic U.S. Rep. Mark Pocan, who sits on the House Appropriations Committee, told reporters in his Madison office Wednesday. Trump had just canceled a meeting with Democratic leaders of the House and Senate, and the House isn’t even in session during the last days of September, as the shutdown clock winds down. 

Still, House Minority Leader Hakeem Jeffries (D-NY) called the Democratic caucus back anyway, “so I’ll be flying Monday out to Washington,” Pocan said.  “Hopefully they’ll decide we’ve got work to do. But you know, this is something where we don’t run the House or the Senate or the White House.” In other words, if the government shuts down, it’s the Republicans’ fault. Republicans, who don’t appear worried about a shutdown, say the opposite, rolling their eyes at Democrats’ demands that a stopgap government funding bill must reverse Medicaid cuts and extend Affordable Care Act premium tax credits, which are set to expire at the end of the year and without which an estimated 5 million Americans will no longer be able to afford any health insurance at all.

A shutdown means hardship for people who depend on government services and could harm the whole economy, “But at the same time,” Pocan said, “we’re trying to fight for people who lost their health care and other things from what we call the Big, Ugly Law.”

Pocan cited data from the nonpartisan health research organization KFF on likely health insurance premium hikes in Wisconsin if the ACA tax credits are not extended. A KFF calculator estimates premium increases for families of different sizes and income levels in every state. A family of four earning $130,000 per year in Wisconsin could see premiums jump by as much as $1,588 per month or $19,081 per year, according to the calculator.

Nationwide, premiums will soar by more than 75% if the credits expire, according to KFF.

Wisconsin Sen. Tammy Baldwin has called for legislation she introduced earlier this year to make the enhanced premium tax credits permanent to be included in any stopgap bill to avert a shutdown.

In a joint statement, Democratic leaders of the House and Senate criticized House Republicans for ignoring their pleas to address the expiring ACA tax credits, writing, “at a time when families are already being squeezed by higher costs, Republicans refuse to stop Americans from facing double-digit hikes in their health insurance premiums.” 

The sudden jump in health insurance premiums, combined with high costs for consumer goods because of Trump’s tariffs, will hit voters just ahead of the midterm elections, which take place right after the ACA tax credits are set to expire. Politics alone should make the idea of forestalling the sudden cliff appealing. But this is no ordinary Republican party. Back in their districts, ducking in-person meetings with constituents, members of Congress who voted for the Big Beautiful Bill Act to slash health care, food assistance and federal agencies that serve their constituents are still in lockstep with Trump. No wonder they don’t care if the entire government grinds to a halt.

A shutdown will be bad. But what Trump and the Republicans have in store for Americans is worse. 

More than the effects of a shutdown, said Pocan, “I’m far more concerned about what they just did to people that we need to try to fix, and if they’re not willing to have those conversations with us — that’s a big problem.”

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