10-18-25
From the desk of Rich Stephens
Video Explaining the Federal Government Shutdown
Below find the expanded text from tonight’s broadcast. For corrections or additions, contact Rich directly.
We are now nearly three weeks into a shutdown of the federal government. People I have spoken to don’t know what that means, don’t know why it’s happening, and my own mother didn’t even know that it IS happening. So tonight we are going to try to bring you some clarity. For nineteen days, Democrats and Republicans have held daily press conferences to place the blame squarely on their opponents.
In our video we parodied legislators on both sides. At the bottom of this article, there are links to some of the real press conferences we used to make these composite characters. Democrats say that Republicans have created a healthcare crisis. Republicans say that Democrats are trying to add a trillion dollars in spending. As they like to say, let me be clear: They are both being deceptive. Democrats passed the Affordable Care Act, the American Rescue Plan and the Inflation Reduction Act. They passed the laws that created the subsidies and the expiration dates are in those laws. So Republicans didn’t create a crisis. But the subsidies are being allowed to expire and not being extended. So Democrats are asking to extend current spending, not add new spending. Following?
Like it or not, that’s what happened. That’s the foundation of our philosophy of journalism here at The Cold Take. Our goal is to report what happened, as it happened. We try to check our feelings and opinions at the door. But as you can see, what happened isn’t always the full story. Republicans control the White House and both chambers of the legislature. However, while a simple majority is enough for the House to pass a budget bill, the Senate requires 60 votes. The Continuing Resolution in question, or CR, already passed the house of representatives but Republicans have failed to get more than 55 votes to pass it in the Senate.
At the heart of the disagreement, the trillion dollars that Democrats say have been eviscerated from the budget and Republicans say is additional spending. Under the Affordable Care Act, passed in 2010, there is something called the Premium Tax Credit. This allows households who earn between 100 and 400 percent of the poverty level to sign up for ACA health care plans. The Federal Government will give them a tax credit in the amount of the benchmark plan in their specific geographic area.
The government pays this amount directly to the insurance company, who then bills the insured party any additional amount owed. During Covid, Congress expanded eligibility by removing the 400 percent cap. That’s right. They didn’t make it 600% or 800%. They just removed it.
The American Rescue Plan was passed by a Democratic majority in the house. Vice President Kamala Harris broke a 50-50 tie in the senate and President Joe Biden signed it into law.
The Inflation Reduction Act of 2022 extended the expansion through 2025, with an expiration date of December 31. What is expiring is only the removal of the 400% cap on subsidies for ACA plan premiums.
So while Republicans aren’t slashing anything, passing a clean CR without extending this subsidy allows it to expire and excludes anyone earning more than 400% of the poverty level from receiving that benefit. For a single person in the contiguous states, that’s an annual income of $62,600 and for a family of 4 it is $128,600.
On the other hand, Democrats insist that costs are going up, when what is actually happening is that the government is no longer paying a portion directly to the insurance company. To the insured, this will look like being charged more for the same thing.
Republicans are firm on allowing these subsidies to expire. Democrats are firm on extending these subsidies. Neither side is being honest about what’s in the existing laws, how the subsidies work or who they really impact. That makes it impossible for me to draw conclusions about motive.
Hakeem Jeffries (D) on the Shutdown
Mike Johnson (R) on the Shutdown
Chuck Schumer (D) on the Shutdown
Enhanced Premium Tax Credit Expiration
Today is day 19 of the Federal Government Shutdown
Rich Stephens
The Cold Take