I don’t normally recommend a forensic autopsy on a live patient, but who knows when the latest government shutdown will end? You might have heard it was about ObamaCare. It was and it wasn’t. You might have heard it was all the (Republicans’/Democrats’) fault. It was and it wasn’t. You might have heard it was necessary (according to some) or inevitable (according to others). It wasn’t. But you have to understand government, politics, the federal budget, and health care if you want to have an informed opinion about what just happened. Or just post your favorite uninformed meme on social media.
By now, most people are generally familiar with the federal budget process. They know it takes a bill through two houses of Congress and a President’s signature to become law. That’s called “authorization” in budget-speak, meaning, it tells the executive branch agencies they have authority to spend money thusly. If they try to spend more, or differently, they’re breaking the law (the budget is, in the end, a law). To put it in everyday terms, when you sit down with your spouse and agree that you’re only going to spend $100 a week on eating out at restaurants, and only $5,000 on your vacation, you have “authorized a budget.” If you commit to your friends to blow an extra $100 on boys’ night out, there will be consequences (legal or otherwise).
Authorization is permission, but the money still has to found. That second process is another bill (again through Congress and the President) called “appropriations.” This actually sends the money to the executive branch to be spent in accordance with the budget. If the Congress authorizes you to spend a million, but only appropriates one-half million, the latter is the limit. In family terms, if the savings account only has $2,000 in it, you’re vacationing in Dollywood, not Disney World. Normally the federal government passes many separate appropriations bills, but since normal isn’t these days, the Congress has taken to passing omnibus bills or continuing resolutions (which say keep spending as you were spending). Earlier this year, Congress passed such a resolution as the Democratic leadership held to the idea shutting down the government was a bad idea. Just wait.*
The MAGA party (formerly the GOP) controls both houses of Congress and the Presidency, which should make passing a budget easier. However, they hold less than sixty seats in the Senate, which has its own norm called the filibuster, meaning it takes sixty votes to break the filibuster and pass a bill. The main exceptions are to confirm some nominations, and to pass the budget (as long as the budget is strictly about money). So MAGA passed an authorization into law, called the One Big Beautiful Bill, but could not get enough Democratic support to break a filibuster on the appropriations paying for what it authorized. And a shutdown ensued.
Normally, the two parties negotiate to resolve the impasse. The minority party (the Democrats in this case) picks some ideas they want to support or resist, and the majority party (MAGA) chooses what they can live with to get the larger bill enacted with the rest of their agenda. Needless to say, these are not normal times. President Trump and MAGA are in no mood to negotiate, period. Senator Chuck Schumer caved the last time this happened, based on a long-standing Democratic party principle that shutting down the government is irresponsible. This time, the Democratic leadership in the House and Senate decided to reject their previous principled opposition to government shutdowns, and instead to stake their negotiating position on several healthcare provisions. President Trump probably would not have negotiated on any Democratic party requests, but these were tailor-made to (1) get support from the party’s progressive base, and (2) aggravate the President. And we achieved shutdown.
There is nothing wrong with all of this: it’s politics. Dysfunctional politics, mind you, but those complaining about it remind me of Captain Renault:
Whose fault is it? Yours. And mine. Every time we voters give a party control of both houses of Congress and the Presidency, but not a sixty-seat majority in the Senate, we invite this chaos. The governing party thinks it has a mandate, the minority party wants to play with fire, and we voters get burned. It should force the parties to negotiate, but that’s failed often enough to not be a justification for continuing to do business this way.
MAGA’s fault? Yes, because they could have negotiated, but refused. What the Democrats asked for was their opening position; President Trump, he of The Art of the Deal, could have gotten a better deal, no? But he refused to try. The Democrat’s fault? Sure. They once again abandoned a principle to oppose Trump, then they chose enhanced ObamaCare subsidies as the point of contention. Why were these subsidies at risk? Because they were expiring, and MAGA left them out of their budget bill. Why were they expiring? Because when a Democratic-majority Congress and President passed them in 2021, they did so on the basis of the idea they were temporary, to make sure no one lost health insurance during a pandemic despite being a very expensive benefit. What kind of fool does the party leadership think voters are to say now it must be continued regardless of cost, when the Democrats approved them as temporary?
Furthermore, Senator Schumer correctly pointed out the last time a shutdown loomed that to cause one gives the President enormous emergency powers to decide how the remaining money gets spent. Facing an internal party revolt (perhaps a primary challenger!) and progressive desire to “fight Trump” (without thinking things through), Schumer caved this time to cause the shutdown, and President Trump predictably used those emergency powers to gut federal programs the Democrats support.
What about the enhanced ObamaCare subsidies? Aren’t they worth fighting for? Firstly, they were an extension of the original subsidies. The original subsidies weren’t temporary, so they are unaffected. Second, President Obama promised his Affordable Care Act had provisions to bring down the cost of health care (not the cost of the insurance, the actual cost of health care). None of these worked, as most experts predicted. ObamaCare did bend the cost curve somewhat: the costs rose 6.9% annually for a decade before ObamaCare, only 4.3% the decade after it. But that’s a decline in the rate of growth, not a decrease! One of the arguments for the temporary subsidies was to offset the continued rise in health care costs. So all the ObamaCare provisions to add more people to Medicaid or to create the exchanges where these subsidies help cover the cost of insurance? They amounted to a huge increase in demand for health care, with no increase in supply. You don’t need a Nobel in Economics to know what happens next: prices surge, as they did.
And remember, we’re not talking about the basic subsidies for the poorest Americans. As an example, I asked Gemini (Google’s AI product) to tell me whether a California family of three making $300,000 annually could qualify for the enhanced ObamaCare exchange subsidies. The short answer is yes under the expanded, temporary subsidies at the heart of the shutdown. Not to be heartless here, but do you think the government should be subsidizing health care insurance for such a family? Given our deficit and debt, I don’t.
The shutdown is now the longest in US history. It won’t end well for either side, especially for the government workers or benefits recipients trying to make ends meet when the checks don’t come. Perhaps the Congress will start talking amongst the parties and come up with a compromise. Whatever the outcome is, it won’t be an improvement in how government runs, how we reduce our profligate spending, or the relative power imbalance between the legislative and executive branches. Other than that, it’s been great for political junkies and social media memes.
* For the love of God, I’m not even going to get into “authorized but not appropriated” called “A-not-A” in budget lingo, or the reverse. Let’s just say there are parts of the sausage-making process better left un-examined.







