Kevin Hassett, Director of the National Economic Council, expressed optimism on Monday that the current government shutdown might conclude within the week.
However, he cautioned that the Trump administration could resort to "stronger measures" if the deadlock over funding persists. Hassett's remarks were made during an appearance on CNBC's "Squawk Box," where he speculated that Democrats might delay voting to reopen the government until after the nationwide "No Kings" protests against President Donald Trump scheduled for the weekend.
According to Breitbart, the federal government has now entered its third week of shutdown, with no resolution in sight due to a partisan standoff in the Senate over funding priorities. Hassett attributed the impasse to Senate Minority Leader Chuck Schumer, D-N.Y., whom Republicans hold accountable for the lapse in funding. "I think the Schumer shutdown is likely to end sometime this week," Hassett stated, underscoring the Republican perspective on the issue.
Should the shutdown persist, Hassett indicated that the White House, in collaboration with White House budget chief Russell Vought, might consider implementing more stringent measures to compel negotiations. The crux of the disagreement lies in differing funding priorities: Republicans are advocating for a short-term resolution to maintain current funding levels, whereas Democrats insist that any temporary measure must include additional healthcare spending. This includes extending the Affordable Care Act's enhanced tax credits set to expire at the year's end and repealing legal changes that restrict illegal immigrants' access to taxpayer-funded healthcare.
Hassett mentioned that Senate Democrats are concerned about the "bad optics" of voting to reopen the government before the anticipated protests, suggesting that they may be waiting for a politically advantageous moment to resolve the shutdown. Despite this, numerous polls indicate that more voters hold Trump and Republicans responsible for the stalemate, with strong public support for extending ACA health insurance subsidies.
When questioned about President Trump's role in the negotiations, Hassett affirmed that Trump "has been very active throughout this process," while also emphasizing that the President believes the Senate should resolve the issue. The ongoing shutdown has already caused significant disruptions within the federal workforce, leading to furloughs and the initiation of permanent layoffs through "Reduction in Force" orders.
Nonetheless, the broader economic impact of shutdowns is generally considered negligible.
As the shutdown continues, the pressure mounts on both parties to find a resolution. The political dynamics at play, coupled with the looming protests, suggest that the coming days could be pivotal in determining the outcome of this funding impasse.
The administration's potential move towards stronger measures may further influence the trajectory of negotiations, as both sides grapple with the consequences of prolonged government inactivity.
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