Podcast Summary: Balance of Power – "Government Spending Impasse Continues"

Date: October 8, 2025
Host: Joe Mathieu (Bloomberg)
Guests:

• Kailey Leinz, Bloomberg correspondent
• Senator James Lankford (R-OK)
• Congressman Jason Smith (R-MO)
• Congresswoman Melanie Stansbury (D-NM)
• Jeannie Shan Zaino, Harvard Kennedy School
• Rick Davis, Stone Court Capital

Episode Overview

This episode of Bloomberg's Balance of Power dives deep into the ongoing government shutdown as Congress fails—yet again—to pass either party’s continuing resolution (CR). Host Joe Mathieu leads discussions with lawmakers, correspondents, and political analysts on Capitol Hill gridlock, the impact on federal workers, the rising use of National Guard troops in U.S. cities, and the legal and political fallout from the prosecution of former FBI Director James Comey. With tempers high and partisanship unyielding, the episode pulls back the curtain on both the policy and the politics keeping D.C. at a standstill.

Key Discussion Points and Insights

1. The Continuing Government Shutdown: Capitol Hill’s Gridlock

• Senate Math Problem: Multiple failed votes in both chambers for CRs (00:55, 18:00, 30:10). The Senate’s 60-vote requirement remains a primary obstacle.
  • Sen. James Lankford (R-OK) [01:34]: "The challenge that we have is we don't have 60 votes. We're not even close to that. So the alternative then is to just keep the government closed down forever. That doesn't help us either."
• Senate Filibuster: Frustration mounts over the inability to even hold a straightforward up-or-down vote on the House-passed CR.
• Groundhog Day in Congress: Joe Mathieu notes the repetitive nature of failed votes.
  • Joe Mathieu [04:02]: "Starting to feel like Groundhog Day."
• Upcoming Pay Crunch: Military and federal workers are set to miss paychecks if the shutdown persists.

2. Federal Worker Pay: Law vs. Politics

• OMB's Legal Memo: Confusion over whether furloughed workers are guaranteed back pay. The Office of Management and Budget (OMB) casts doubt, citing the need for explicit appropriations despite a Trump-signed 2019 law.
• Speaker Mike Johnson's Position: Insists workers should be made whole—echoed by House GOP, though confusion remains over those furloughed and “essential” workers.
• Rep. Jason Smith (R-MO) [06:46]:
  • "Back pay for federal workers who have not been furloughed, who have been working, should absolutely be paid. There's no question about that. Where the discussion is is for individuals who have been furloughed, who are not working during the shutdown. That is where the big debate is."
• Rep. Melanie Stansbury (D-NM) [38:05]:
  • "The law is very clear here. You cannot fire federal workers during a shutdown. And we passed legislation in 2019 to guarantee back pay for federal workers. So whatever the president says he cannot just make stuff up. The law applies, and they cannot withhold pay from federal workers."
• Upcoming Pay Dates: 10th—federal staff paychecks; 15th—military.

3. Obamacare Subsidies: Policy or Hostage?

• Battle Over Extension: Republicans frame subsidies as unrelated COVID-era add-ons that should expire; Democrats view their extension as critical to preventing sharp cost spikes.
• Rep. Jason Smith [11:25]:
  • "Premiums have gone up 80% in the last 10 years in Obamacare exchanges. What they've done with these subsidies only increases the incentive for insurance companies to raise premiums, which is the wrong thing. ... Those premium tax credits, they don't expire till December 31st."
• Rep. Melanie Stansbury [35:00]:
  • “We are fighting to make sure that Americans healthcare doesn't get jacked up in the coming weeks...This is about real costs that real Americans are going to feel in the next few weeks if we don't act now.”
• Sen. Lankford [33:41]:
  • "Democrats actually put that [COVID subsidies] in during the inflation reduction act...it was set there by Democrats when they said this is only for the pandemic time period. And now they're saying, just kidding, I want to be able to make that permanent."

4. The Filibuster: Time for a Change?

• Rep. Jason Smith [15:51]:
  • "I think people have to earn their stripes and they absolutely should have to actually filibuster, be talking at the microphone instead of just like, okay, if there's not 60 votes, it's not filibuster proof. That's crazy. Force their hand."

5. National Guard Deployments: Escalation in U.S. Cities

• Chicago as Latest Flashpoint: Approximately 500 troops (Illinois and Texas) deployed ostensibly to support ICE operations.
• Federal vs. State Deployments: Critics warn active duty troops are not trained for domestic law enforcement, worry about legality and overreach.
• President Escalates Rhetoric: Calls for the jailing of Chicago Mayor Brandon Johnson and Illinois Governor J.B. Pritzker for not protecting ICE (21:05).
  • Jeannie Shan Zaino [21:22]: "The idea that the president...is calling for the jailing of the mayor of one of the biggest and most important cities...is utterly astonishing."
• Comparison to New Mexico’s National Guard Use:
  • Rep. Stansbury [39:42]: "There's a fundamental difference between a governor coordinating with local officials...versus the president illegally deploying National Guard to states and cities where it is unwanted...He is trying to scare the American people...But that is not the same as a coordinated legal authority under which a governor and local authorities use the deployment as a way to support local law enforcement."

6. Legal Fallout: James Comey’s Prosecution

• Comey Pleads Not Guilty: Former FBI Director James Comey charged with lying to lawmakers and obstruction—a case widely seen as politically motivated after President Trump publicly instructed DOJ to act.
• Pushback from Legal Community: Unusual prosecutorial moves and doubts over case legitimacy.
  • Rick Davis [27:30]:
    • "There's no question. It's another sort of shattering glass of the judicial institutions of America...I can't imagine a scenario where this gets much of a hearing other than this is malicious prosecution, and we aren't going to stand for that in the judicial system."

Notable Quotes & Memorable Moments

• “Starting to feel like Groundhog Day.”
  —Joe Mathieu, on recurring failed votes ([04:02])
• “You should never shut down government for policy issues. You should fund government. Let's follow through with those actions.”
  —Rep. Jason Smith ([13:52])
• “You cannot fire federal workers during a shutdown. ... If you are a federal worker out there ... if you receive notice that you're not going to receive back pay, that is just untrue. You have rights and the law is on your side.”
  —Rep. Melanie Stansbury ([38:05])
• “The president of the United States is calling for the jailing of the mayor ... and the governor ... it's utterly astonishing.”
  —Jeannie Shan Zaino ([21:22])
• “I think people have to earn their stripes and they absolutely should have to actually filibuster, be talking at the microphone...”
  —Rep. Jason Smith ([15:51])
• “This is another sort of shattering glass of the judicial institutions of America.”
  —Rick Davis ([27:30])

Important Segment Timestamps

• 00:55–02:29: Update on congressional voting; the Senate votes on Republican CR.
• 01:34: Sen. Lankford on Senate deadlock.
• 06:46–08:59: Rep. Jason Smith on back pay and legal obligations.
• 11:25–13:27: Smith vs. Democrats on Obamacare subsidies.
• 15:51: Smith advocates old-school filibusters.
• 18:00–21:22: Panel on National Guard in Chicago, Trump’s rhetoric, and city reactions.
• 25:13–28:59: Legal panel on James Comey’s prosecution.
• 34:59–36:24: Rep. Stansbury responds to being in D.C. and the state of negotiations.
• 38:05–39:42: Stansbury on OMB, worker rights, and the Trump administration’s approach.
• 39:42–41:49: Discussion of National Guard deployment differences (state vs. federal).
• 42:06: Stansbury on supporting the military and reopening government.

Tone & Style Notes

• The episode flows with urgency and vivid frustration. Both lawmakers and analysts express impatience with the repeated failures to advance a CR and deep concern about the growing precedent of executive overreach (National Guard, DOJ prosecutions).
• The tone alternates between pointed and analytical, with both Republican and Democratic voices expressing weariness over the standoff, but each side casting blame on the other for obstruction.

Summary for New Listeners

This episode of Balance of Power provides a comprehensive look at the mechanics and politics of the ongoing government shutdown. It highlights the legislative stalemate, the murky state of federal worker protections, and the risks of growing executive ambition—domestically and legally. Through candid exchanges with key lawmakers and sharp analysis from seasoned political strategists, the episode offers both a real-time update and a bigger-picture meditation on the current dysfunction in Washington. Anyone seeking clarity on why the government remains closed, what’s at stake for ordinary citizens and civil servants, and how high tensions have climbed in the new era of brinkmanship will find this episode both essential and illuminating.