Economics

Oct 16, 2025 Michael R. Strain

The US federal government shutdown has become a standoff over health care that will likely end with some sort of extension of the temporary health-insurance subsidies adopted during the pandemic. But that would not address the larger problem of America’s high health-care costs – to say nothing of its fiscal imbalance.

WASHINGTON, DC – Democratic Senators have delayed reopening the US federal government in an effort to extend health-care subsidies that are scheduled to expire at the end of 2025. US President Donald Trump and Republican leaders seem open to striking a deal with the Democrats on the subsidies – but only after the government shutdown ends. “I’d like to see a deal done for great health care,” Trump recently said. “I’m a Republican, but I want to see health care, much more so than the Democrats.”