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Obamacare subsidies could be jeopardized by federal shutdown, Michigan congressman says

U.S. Representative John Moolenaar (R-MI 2) speaks at the Veterans of Foreign Wars building in St. Louis, Michigan, on June 17, 2024.
Ellie Frysztak
/
WCMU
U.S. Representative John Moolenaar (R-MI 2) speaks at the Veterans of Foreign Wars building in St. Louis, Michigan, on June 17, 2024.

Negotiations over enhanced Obamacare tax credits could be at risk if the federal government shutdown continues, U.S. Representative John Moolenaar (R-MI 2) said during a telephone townhall on Wednesday.

Democrats have been refusing to support spending measures to fund government operations unless they also come with an extension of the tax credits, arguing that without an extension, health insurance costs will soon shoot up for millions of Americans.

Mooleenar, who is on the House Appropriations Committee, said that negotiation over extending the enhanced tax credits for the Affordable Care Act is “something that could occur.” He added that the shutdown, however, was putting negotiations at risk because the credits expire in December.

"Every day they (Democrats) keep the government shut down in order to try and accomplish their agenda, it puts those credits, those extra credits, as well as other key priorities in danger," Moolenaar said.

The subsidies are a major sticking point in negotiations, which have seen the shutdown drag on for weeks, with no clear end in sight. Democratic leaders warn if the enhanced subsidies are not extended, health insurance premiums will shoot up. Open enrollment for the program begins November 1. Democratic leadership wants an extension before that date.

Moolenaar, speaking from his Washington office, said he voted to keep the government open. He decried the shutdown’s impact on government services and called on Senate Democrats to vote on the short-perm budget passed by the House. The budget would keep government funding at current levels until late November.

“These types of political games are abhorrent," he said. "I believe it's well past time for the Democrats in the Senate and Americans especially to tell [Democratic Senate Majority Leader] Chuck Schumer to end their shutdown politics."

Moolenaar praised the Trump administration for redirecting Pentagon funds to pay troops and redirecting tariff funds to keep the Supplemental Nutrition Program for Women, Infants and Children (or WIC) solvent through the month.

NPR reported earlier this month on a draft memo from the Office of Management and Budget that cast doubt on whether federal workers would receive back pay for their unpaid work during the shutdown. Responding to a question from a constituent on the subject, Moolenaar said federal workers would likely receive back pay for their work during the shutdown.

“Over the years, traditionally in these shutdowns, federal workers have received back pay and I believe that will be the case, this time as well,” he said.

Moolenaar also touted the Trump administration's immigration policies for bringing down the number of illegal border crossings. He supported withholding federal funds for cities that do not cooperate with federal immigration enforcement.

"That's the one piece of leverage that we have on the federal level,” he said, “If you're not following the law, you may end up forfeiting some of your federal dollars because … there's no excuse for not enforcing the law.”

Moolenaar spoke positively about the new $250 million ballroom being built at the White House. Part of the East Wing has been demolished to make way for it.

Moolenaar pointed out that the White House has been renovated many times over the years and compared the new renovations to First Lady Jackie Kennedy’s.

“These areas that they're renovating, are going to be really fantastic and a beautiful addition to the people's house, and, I think it'll be enjoyed for generations to come,” he said.

The government shutdown, now more than three weeks old, is currently the second-longest in American history.

A.J. Jones is a newsroom intern and graduate of the University of Michigan-Dearborn. Sources say he owns a dog named Taffy.
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