Government Shutdown Crisis Deepens
The government shutdown in the United States has reached a critical point, with the federal food assistance program facing delays and millions of Americans experiencing a significant increase in their health insurance bills. The Supplemental Nutrition Assistance Program (SNAP) was set to have its payments withheld by the Trump administration, but two federal judges intervened, ordering the administration to make the payments. However, the delay in payouts will still likely leave millions of people short on their grocery bills.
The shutdown has already lasted for a month, making it the second-longest in history, and there is little urgency in Washington to end it. Lawmakers are away from Capitol Hill, and both parties are entrenched in their positions. The House has not met for legislative business in over six weeks, while Senate Majority Leader John Thune, R-S.D., closed his chamber for the weekend after bipartisan talks failed to achieve significant progress.
The stalemate appears increasingly unsustainable, with Republican President Donald Trump demanding action and Democratic leaders warning that an uproar over rising health insurance costs will force Congress to act. The annual sign-up period for the Affordable Care Act health insurance began on Saturday, with sharp increases in what people are paying for coverage. Enhanced tax credits that help most enrollees pay for the health plans are set to expire next year.
Delays and Uncertainty Around SNAP
The Department of Agriculture planned to withhold payments to the food program starting on Saturday, but the judges’ intervention has temporarily halted the plan. Trump said he would provide the money but wanted more legal direction from the court, which will not happen until Monday. Benefits were already facing delays because it takes a week or more to load SNAP cards in many states. Some governors and mayors have stepped in, using what money they have available to fill the program that feeds about 42 million Americans.
“People are just nervous, scared,” said Jill Corbin, the director of the St. Vincent De Paul soup kitchen and food pantry in Norwich, Conn. “It’s not really a definite answer that we have right now.” The organization had 10 extra volunteers to help newcomers navigate the process, with 400 families visiting the food pantry and 555 people receiving hot meals on Wednesday.
The SNAP program serves about 1 in 8 Americans and costs about $8 billion per month. The judges agreed that the USDA needed to at least tap a contingency fund of about $5 billion to keep the program running. However, there is still uncertainty about whether the department would use additional money or only provide partial benefits for the month.
“Trump and Republicans are illegally withholding SNAP benefits. Millions of children could go hungry,” said House Democratic leader Hakeem Jeffries of New York in a social media post that also criticized the president for spending Saturday at one of his Florida golf courses.
Health Care Subsidies Expiring
The annual sign-up period for the Affordable Care Act health insurance began on Saturday, with sharp increases in what people are paying for coverage. Enhanced tax credits that help most enrollees pay for the health plans are set to expire next year. Democrats have rallied around a push to extend those credits and have refused to vote for government funding legislation until Congress acts.
“Millions of Americans in every state across this country are waking up to drastically higher premiums for the same health care coverage they’re already on — all because Congress could not come together to extend the vital enhanced premium tax credits that make health care more affordable,” said Sen. Jeanne Shaheen, D-N.H., in a statement.
If Congress does not extend the credits, subsidized enrollees will face cost increases of about 114%, or more than $1,000 per year, on average, health care research nonprofit KFF found. In Wisconsin, for example, families on the ACA’s silver plan could see premium increases of roughly $12,500 to $24,500 annually depending on their location.
Impact on Americans
The shutdown and the expiration of health care subsidies are having a significant impact on Americans. T.J. McCuin, whose family owns and operates farmers markets in Mesa and Apache Junction, Ariz., said 15% of the markets’ customers use SNAP benefits. He was not assuming the delays would immediately hurt the business, but added, “Hopefully this isn’t a long-term problem because once those benefits run out, then it’s going to start to hurt.”
