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Shutdown Likely as Trump and Democrats Deadlock Over ACA Subsidies

Democrats say an immediate extension of ACA tax credits is needed to avert premium spikes starting November 1.

Overview

  • President Trump told CBS News a shutdown looks likely due to a stalemate over health-care subsidies, with congressional leaders set to meet at the White House after a canceled session last week.
  • Democratic leaders argue the subsidy extension cannot wait, with Sen. Amy Klobuchar warning of roughly 75% premium increases beginning Nov. 1 if Congress fails to act.
  • White House sources describe a memo preparing reductions in force should funding lapse, and report that Trump would welcome a shutdown to exert executive authority.
  • Concerns over Justice Department independence intensified after two Virginia U.S. attorneys resigned under disputed circumstances and interim Eastern District appointee Lindsey Halligan moved forward with an indictment of former FBI Director James Comey.
  • The Jan. 6 narrative remains contested as Trump and ally Kash Patel allege FBI agitation while senators point to Inspector General findings showing no evidence of undercover agitators, and Sen. Rand Paul underscores broad presidential authority over executive-branch personnel.