Government Shutdown Day 3: Bipartisan ACA Tax Credit Extension Path

Government Shutdown Update

• 📌 On day three of the government shutdown, there is no clear answer on how it will end.
• ⚠️ Senate votes expected this afternoon are likely to fall short of the 60 votes needed to reopen the government, extending the shutdown through the weekend and into Monday.

Potential ACA Tax Credit Extension

• 💡 An off-ramp may be emerging through a bipartisan path to extend tax credits for healthcare premiums.
• 🎯 These enhanced ACA credits are set to expire at the end of the year, potentially causing premiums for 24 million Americans to rise by about 75%.
• 💬 While Democrats support an extension, some Republicans are open to a limited extension with caps and measures to root out waste, fraud, and abuse.
• 💰 Congresswoman Jen Kiggins suggested implementing income caps to prevent high earners from accessing credits, a change made during COVID.
• 🚫 Not all Republicans are on board, citing opposition to the Affordable Care Act and the hundreds of billions of dollars in cost over the next decade.

Potential White House Announcements

• 📢 The White House may make an announcement today regarding "Democrat agencies" that need to be closed.
• 📝 JD Vance indicated an announcement would happen either yesterday or today, suggesting a list of agencies might be prepared.
• 📊 Project 2025, which Russ Vought had a hand in writing, outlines agencies that could see cuts, and the extent of these cuts and their economic impact is of interest.