Trump and GOP Drive Shutdown While Families Face Soaring Premiums

October 1, 2025

The US government has shut down due to a standoff between MAGA Republicans and Democrats over healthcare funding, specifically regarding Medicaid and Affordable Care Act subsidies. Approximately 750,000 federal employees are being furloughed daily, with many facing potential permanent layoffs as directed by the Office of Management and Budget. Without extending enhanced tax credits, nearly 24 million Americans could see their health insurance premiums double or triple, with low and moderate-income households facing devastating financial consequences, according to KFF research.

Who is affected

Approximately 750,000 federal employees being furloughed daily
Nearly 24 million Americans who buy their own health insurance coverage
Low-income enrollers (like a Texas worker making $23,000 annually)
Moderate-income households (like a 60-year-old Florida couple earning $85,000)
Small business owners, farmers, and gig workers
Black Americans who disproportionately rely on ACA coverage
Patients seeking enrollment in NIH clinical trials
Visitors to national parks and Smithsonian museums

What action is being taken

Democrats are blocking the Republican funding plan that excludes healthcare protections
Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries are advocating to protect ordinary people from financial ruin
The Office of Management and Budget is directing agencies to prepare for both temporary cuts and permanent reduction-in-force notices
Federal agencies are operating with minimal staff, including the CDC continuing to track disease outbreaks with reduced capacity
Goldman Sachs is tracking the economic impact, projecting GDP will fall by 0.15 percentage points each week of the shutdown

Why it matters

Health insurance premiums could rise by more than 100% for many families if enhanced tax credits aren't extended
Many Americans will face severe financial hardship (e.g., the Texas worker's premiums jumping from zero to $920, and the Florida couple facing a $21,000 premium increase)
The shutdown compounds existing economic pressures from inflation on food, housing, and utilities
Essential government services are severely impaired, including FDA drug approvals, disease prevention research, and clinical trials
The economic impact extends beyond government, affecting the broader economy, private sector, and consumer confidence

What's next

No explicit next steps stated in the article

Read full article from source: The San Diego Voice & Viewpoint