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1h ago

ACA Subsidy Clash Drives Government Shutdown as Parties Escalate Blame

Democrats are centering health-care costs from expiring ACA credits.

Republicans are trying to claim Rep. Alexandria Ocasio-Cortez is in charge and responsible for the government shutdown, but polling suggests the GOP is taking the heat as it enters a second day.
Illustration: Sarah Grillo/Axios
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Overview

  • Nonessential federal services are shuttered after funding lapsed over a dispute about extending Affordable Care Act premium tax credits, with furloughs and unpaid work underway.
  • Rep. Alexandria Ocasio-Cortez told NBC News that Senate Leader Chuck Schumer and House Leader Hakeem Jeffries are directing Democratic strategy and negotiations, describing the caucus as united.
  • Republican leaders, including President Donald Trump, Vice President J.D. Vance and Speaker Mike Johnson, assert Schumer forced the shutdown out of fear of an AOC primary challenge, a claim Democrats dismiss.
  • The White House is promoting the lapse as a chance to cut federal agencies, with OMB Director Russell Vought engaged on potential reductions and Trump urging Republicans to “clear out dead wood.”
  • Democratic messaging—driven by figures like Gavin Newsom, Cory Booker, Bernie Sanders and Ocasio-Cortez—focuses on preventing premium spikes and health harms if the ACA credits lapse, with Axios reporting a broader push for a tougher stance against Trump.