Finally, seeing a promising end to a record-long government shutdown of over 40 days, it is time to reflect and ask how we ended up in this situation. Let’s start with the basics of a government shutdown so that we can understand the specifics of the current situation.
The Basics of a Government Shutdown
The United States government shuts down when Congress fails to pass the federal budget, which is a plan for how the government intends to spend its revenue and collect money for the year. While shutdowns are rare, this is far from the first.
Many are impacted by the shutdown, starting with federal employees; all non-essential government work stops, while essential workers continue working, but both without pay.
Additionally, government-supported programs are stopped or delayed during a shutdown, including public access to national parks and loans and benefit programs. Even within programs that continue, like food assistance (SNAP) and Air Travel, these experience reduced efficiency and greater uncertainty. It is important to note that while the shutdown starts in DC, it affects millions of people worldwide.
What caused the current shutdown
The disagreement that caused the current shutdown began during COVID, when the government provided subsidies to the Affordable Care Act (ACA), also known as Obamacare, to make healthcare more affordable and accessible. These subsidies are soon to expire, causing tension and disagreement over the current federal budget. Democrats want to extend subsidies to continue to support vulnerable families, while Republicans want to negotiate the implications of doing so. They ask key questions, including how much money would go towards the subsidies, if there are more cost-effective solutions, or even different systems other than Obamacare. Some Republicans are looking to keep subsidies, but limit them for the most needy. As both parties have held firm, the argument serves as a reminder that healthcare policy remains one of the country’s most challenging issues.
Proposed solution
The government can conclude a shutdown in two ways: through a continuing resolution or reaching a concrete agreement. 43 days later, we have seen a temporary solution to the shutdown. In this case, the government will pursue a continuing resolution, passing a temporary funding bill to keep operations going and negotiations active, but only until January 30th. What happens after January 30th is an article for the future!