The Senate has voted to end the government shutdown. CNBC posted an article on Monday (updated Tuesday) explaining what happens next.
The article reports:
- The Senate passed a bill to end the U.S. government shutdown.
- House Speaker Mike Johnson called for House members to travel to Washington, D.C., so that they can vote as soon as possible on the deal.
- To end the shutdown, the House needs to pass the Senate bill, and then President Donald Trump must sign it into law.
There are some grumblings among more liberal Democrats that they will try to stop the bill in the House, but I don’t think they will succeed.
The article notes:
House members were told that votes on the deal could begin by 4 p.m. ET on Wednesday.
Before the Senate vote, Johnson refused to commit to the deal’s key guarantee to Democrats: that Congress will hold a separate vote in December on potentially extending enhanced Affordable Care Act subsidies. That vote would be on a bill of the Democrats’ choosing, according to the Senate agreement.
“I’m not committing to it or not committing to it,” Johnson, R-La., said Monday on CNN.
Those subsidies, which are due to expire at the end of December, help reduce the cost of individual health insurance plans for more than 20 million Americans.
What the article fails to mention is that the subsidies go to the insurance companies rather than to the people buying the insurance. The insurance companies have no incentive to lower premiums or cut costs. The impact of the subsidies going to the insurance companies on the price of insurance is similar to what happened to college tuition when the government got involved in the student loan program. When you take away incentive to lower prices, prices do not get lowered.
The article concludes:
The Senate deal would fund the government through the end of January; reverse all shutdown-related layoffs of federal employees; and guarantee that all federal workers will be paid their normal salaries during the shutdown.
The deal also includes provisions for a bipartisan budget process and prevents the White House from using continuing resolutions to fund the government.
CRs have been repeatedly used to avoid government shutdowns, but are controversial because they frequently avoid lawmakers having to make decisions about long-term funding of the government that a normal budget would resolve.
The deal would also fund, through September, the SNAP program, which helps feed 42 million Americans through food stamps.
Under a federal law passed in 2019, government employees who are furloughed during a shutdown must be paid for the time they were out of work at their standard rate of pay “at the earliest date possible, regardless of scheduled pay dates.”
