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- [00:01]
Tyler Kendall
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- [00:32]
Bloomberg Announcer
Bloomberg Audio Studios podcasts Radio news. You're listening to the Bloomberg Balance of Power podcast. Catch us live weekdays at noon and 5pm Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube.
- [00:55]
Joe Matthew
As we follow the beat here in Washington. Thanks for joining here on the Tuesday Edition alongside Tyler Kendall in for Kailey Le. I'm Joe Matthew. We don't want to waste time. We want to get right to the Congressman. Mike Lawler is with us now, of course, the Republican from New York. 17th we spent a lot of time talking about everything from salt to yes, government funding. And here we are again. Congressman, thank you for joining us on Bloomberg TV and Radio. The conventional wisdom is we shut down after midnight and I'm assuming you don't see a way around it. What comes after the shutdown?
- [01:25]
Congressman Mike Lawler
Well, unfortunately it looks like we are barreling towards a shutdown because Democrats like Hakeem Jeffries and Chuck Schumer have changed their position entirely on keeping the government funded and passing clean crs, whether it was Joe Biden or Donald Trump. I have voted for every single CR to keep the government open and funded while we negotiate a final appropriations package. I think it is foolish to shut down the government. It is going to create chaos in the markets. It will create chaos for the American people, especially those who rely on the social safety net, border security, our military, veterans benefits, etc. This is entirely unnecessary and does nothing to actually further the work of the American people. It is pure political posturing by my Democratic colleagues because they are not in the majority. And from my vantage point, that is not what you do. I was against it when Republicans wanted to shut down the government and I'm against it here when Democrats want to do it. So we will see what happens over these 12 hours. As you pointed out, Republicans passed a clean CR through the House. The bill is sitting in the Senate at the desk. It can easily be taken back up right now and passed. And Chuck Schumer refuses to do that despite his many pronouncements in years past about the need to pass clean CRS and not pound your fist and stomp your feet when you don't get your way.
- [03:02]
Tyler Kendall
So, Congressman, I hear you on the future of a potential clean cr, but do you see any room for negotiations here when it does come to those expiring Obamacare tax credits? We did hear from House Speaker Mike Johnson in an interview this morning saying that there might be some negotiating room, but that would have to happen after a funding bill is passed since the tax credits are going to expire by the end of the year.
- [03:27]
Congressman Mike Lawler
Correct. And I am one of several Republican members who have signed on to legislation to extend the ACA subsidies for a year. Remember, these were put in place during COVID to try and help those who were losing their jobs or unemployed because the government was forcing businesses to shut down. We don't want people to be unduly hurt, obviously, by healthcare premium increases. But to try and shut the government down while negotiating some of these issues is foolish. We can easily keep the government funded through November 21st, finalize all appropriations for fiscal year 26, and come to an agreement on these ACA subsidies for the next year or two. There's no reason to shut the government down in the middle of those negotiations.
- [04:22]
Joe Matthew
You wonder what would happen if Mike Johnson said exactly what you just said, although maybe there's so little trust it doesn't matter right now, Congressman. But what should come of these after we've been talking about these extensions for some time now, everybody has become, you know, an expert on this, or so they think. If this was a Covid era policy, should it be extended forever, as Democrats suggest? You just pointed out a year. Should they come down? Should there be a gradual phasing out? What's the long term on this?
- [04:50]
Congressman Mike Lawler
Well, I think again, this is a negotiation and a discussion to be had. I think many Republicans would like to see an income limit, you know, on these subsidies. Again, these were put in place during COVID I think there's a larger point though, which is if the Affordable Care act was supposed to reduce healthcare premiums, was supposed to increase access, why is it not working as intended 15 years later, so much so that you need these subsidies to help people. Obviously there's a broader issue with health insurance cost in this country, and I think that is something that Republicans and Democrats should work on together to focus on how we reduce overall costs. You saw the president today with the announcement with respect to Pfizer and certain prescription drugs and being able to purchase them at a much lower rate. That's important when you look at the challenges facing the US And Europe. Part of the problem with prescription drug costs in America is that Americans are subsidizing Europeans with the price controls that have long been put in place on prescription drugs in Europe. So that is something that we should all embrace reducing overall cost. But that's not something that you shut the government down over and really harm the very people that you're trying to help.
- [06:16]
Tyler Kendall
Well, sticking with this idea that higher drug costs are a main point, a political point on both sides of the aisle, I also want to ask you about some of the economic impacts here of a potential shutdown. You said, of course, on House Fin Services, our analysts at Bloomberg Economics estimate that the unemployment rate could reach 4.7% in a shutdown. I'm wondering are the optics going to be difficult to navigate here considering there's already concerns about the labor market? How are Republicans going to message around this when we know that economic impacts could really be one of those top, top concerns and priorities?
- [06:55]
Congressman Mike Lawler
Well, we've seen in shutdowns prior, for instance, the stock market has generally grown. The biggest concern has been on GDP. We saw for Q2 revision a 3.8% growth in GDP, which far exceeded what many prognosticators were claiming was going to happen in Q2. So, you know, certainly we, the economy is moving in the right direction. We got the tax cut package across the finish line that was critical for tax certainty. We don't need a government shutdown to create unnecessary chaos as we are working to enact critical policies that move the economy in the right direction, that create jobs, that create wealth and opportunity. And so look, unemployment obviously is a critical issue. We don't want to see layoffs. We don't want to see uncertainty in the market. Democrats have said for years, Chuck Schumer, Hakeem Jeffries, long on record about the impacts of a government shutdown and the need for a clean cr. They should look in the mirror, listen to their words of years past, including just last year with Joe Biden at the helm, and vote the right way, which is to pass a clean CR and keep the government funded while we work through all these other issues of concern.
- [08:17]
Joe Matthew
What's your view on the Fed, Congressman, as you sit on the Financial Services Committee, to Tyler's point, if this affects the release of the jobs report, for instance, on Friday, if BLS can't kick out the jobs data, at what point does that become a problem for the Fed to make an accurate decision, say by the next meeting when it doesn't have a complete picture of the data. Is this something you're worried about or you think government will be back open at time?
- [08:44]
Congressman Mike Lawler
Well, again, these, these are all the concerns and considerations that go into a government shutdown and why I fundamentally believe, regardless of which party is in power, shutting the government down is stupid. It doesn't serve a purpose, but for a political one. And in this instance, Democrats are trying to use this for a political purpose. And that is wrong. It was wrong when Republicans wanted to do it in years past. It is wrong now when you talk about the Fed. Look, fundamentally, I believe the Fed has been late to the game, both when they needed to raise interest rates in the past and now. In terms of reducing interest rates, I think they need to cut interest rates far greater than they have. Obviously, having all of the data and information is important, but I think all of us recognize the need for them to cut rates. So whether or not they have that data, they need to act on the reality of the situation. Jerome Powell needs to advance rate cuts in a serious way so that we can continue to move this economy in the right direction.
- [09:55]
Tyler Kendall
Well, we heard from President Trump this morning saying that there could be, quote, a lot in his words of firings amid this shutdown. We know the OMB was circling, circulating this memo threatening permanent layoffs. Do you agree with this as what seems to be emerging as a negotiating tactic between the White House and Democrats on the Hill?
- [10:17]
Congressman Mike Lawler
Look, I said earlier in the week when that memo came out that I don't agree with permanent layoffs. But this is the challenge. When you have a shutdown shutdown, the executive will make determinations as to who's essential, who is not, restructuring of departments and agencies based on a lack of funding. And I think if Democrats are so concerned about what they see, as, you know, excessive executive overreach, then they shouldn't be playing games here. Pass the clean CR and keep the government funded, and then we don't even have to have that discussion. But unfortunately, they are playing games here and changing their previous position. Every single House Democrat but for one, Jared golden of Maine, every single House Democrat either didn't vote or voted no on keeping the government funded almost two weeks ago.
- [11:12]
Joe Matthew
Do you take the White House quickly, Congressman, at their word when it comes to the layoffs?
- [11:18]
Congressman Mike Lawler
Look, I don't, I don't think they're kidding around if they intend to do that. They've made that clear. And again, why play with fire here? There's a very easy way to solve all this. Pass a Clean CR and let's keep doing the work of the American people, negotiate a final appropriations deal. What they should be asking for is a top line number from OMB so that we can finalize the appropriations for fiscal year 26. That's what they should be asking for instead of trying to play political games here.
- [11:51]
Tyler Kendall
All right. Republican Congressman Mike Lawler of New York, thank you so much for joining us here on Bloomberg Television and Radio today. And for more analysis, we're lucky to say we're joined now by our Washington deputy bureau chief, Laura Davison. She's here with us in our DC Studio. So, Laura, we've been talking a lot about the politics of this shutdown fight, but I'm wondering if you could just take us through the procedure. What are we actually going to see as we get closer to this vote tonight and that 12:01 Eastern deadline?
- [12:22]
Laura Davison
So we have two parallel processes playing out. One, what's happening on Capitol Hill, which is right now a lot of talking at each other, not talking to each other. There will be more press conferences later this afternoon. And as the hours tick on to midnight, it is we will see another vote on acr. It is likely that that will fail and then it will hit midnight and the government will shut down. At the agency side, they are busy scurrying around going through all of their shutdown procedures right about now, about a half day before the shutdown set to go into effect. They are basically each employee is figuring out, you know, what work will get stopped for an undetermined amount of time, what work will continue. They have to sign paperwork. So the roads in Washington were very busy this morning as every single federal employee was going to their office to.
- [13:05]
Tyler Kendall
Get everything all set up.
- [13:06]
Joe Matthew
That's why I was sitting in traffic. That's good to know. So we get another vote on the Republican cr. Democrat version gets a vote as well. We're going to have a couple of votes to codify this before the day is over.
- [13:17]
Laura Davison
Yes, there will be these dueling crs, again, likely that these will fail. And it's also possible in the next couple of days. You know, we're hearing Republicans say that they're not going to engage in bipartisan talks if there's a shutdown. They're instead just going to bring up this Republican CR every day and force Democrats to vote.
- [13:31]
Joe Matthew
That's a new angle. Right. So we'll vote every day on the thing we know is going to fail.
- [13:35]
Laura Davison
That's, that's what they're saying. I mean, it's sort of A, it's sort of a tactic. It's a, it's a, it's a hardball tactic to get Democrats to try to cave on this. You know, Democrats say that that's not what they're doing. And we heard Chuck Schumer say, look, we're, we're not going to be bullied into this. The question is, you know, when it's two, three, four weeks out, who's the.
- [13:50]
Congresswoman Susan Del Bene
First one to blink?
- [13:51]
Tyler Kendall
Well, we also had reporting that Schumer was potentially floating an even shorter stock gap measure seven to 10 days. But then yesterday he came back White House and it appears that they're now abandoning that idea. Is there any sort of discussion happening right now about maybe a small extension just so that they can keep negotiations going?
- [14:09]
Laura Davison
That is sort of the one escape hatch they have in their, in their hand. If they want to do that, they can get that through the Senate quickly and then have the House essentially approve it even when the members aren't here. The problem is, is that no one seems to want to sort of offer that up yet. They also, when you, when you do these short, you know, very short term continuing resolutions, you know, just a couple days, you generally know that you are on path to have a deal at the, of that period of time and you're operating good faith. Right now, there is no good faith and it's all bad blood in between the two parties.
- [14:36]
Joe Matthew
The question becomes then what, what do you do once it's closed? How do you reopen it? You're talking about some show votes here, but a great concern in some cases expressed on the air to us by Democrats is we can't let this close unless we have a plan to reopen it. It doesn't look like they have one, Laura.
- [14:52]
Laura Davison
Democrats don't, they don't really have a good escape hatch here.
- [14:55]
Joe Matthew
So you could have another record link.
- [14:57]
Laura Davison
Length close very, very well. You know, so we had last night, Lindsey Graham, a Republican, was speculating that Democrats would cave in a few days, you know, we'll see where that that lands. The issue really is a short, short term shutdown isn't that damaging. You know, people will get back pay the workers who are furloughed. CBO just came out with a report saying 750,000 workers, it's roughly about a third to 40% of the federal workforce will be sent home and but about, you know, 60% will have to continue working without pay.
- [15:24]
Joe Matthew
Okay.
- [15:25]
Laura Davison
But it's when, you know, those workers have gone, you know, one or two paycheck cycles without a paycheck that people really start to feel the heat and the pressure. That's what we saw in 2018 when there was that 34 day shutdown.
- [15:36]
Tyler Kendall
Right, Right. I also believe our analysts at Bloomberg Economics say that if this is resolved by mid November, we're not going to see any impact when it comes to fourth quarter gdp. But ultimately if this extends beyond, then the stakes get higher and higher. Of course, at the center of this, as we've been discussing, is the future of those Obamacare tax credits. I'm just wondering, from what you're hearing, is there actually room to negotiate on that? Whether it's now or down the line, since we know we're up against a pretty hard deadline, which is the end of end of the year, that does.
- [16:07]
Laura Davison
Seem to be the area where there is some room to negotiate. Trump suggested that via Vance last night at the White House.
- [16:13]
Joe Matthew
Great to have you by and great to have Congressman Lawler with us. Laura Davison, our deputy bureau chief here in Washington, helping us understand the stakes and the timetable. We're counting down to 1201 and it looks like there will be a shutdown. Stay with us for more. We'll assemble our panel next, only here on Bloomberg TV and Radio. Stay with us on Balance of Power. We'll have much more coming up after this.
- [16:37]
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- [17:21]
Bloomberg Announcer
You're listening to the Bloomberg Balance of Power podcast. Catch us live weekdays at noon and 5pm Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube.
- [17:37]
Joe Matthew
Bloomberg TV and radio. Thanks for spending part of your day with us as we count down to a possible government shutdown. It's a story we're talking about all day and we're going to have special coverage live from the Senate on the late edition of Balance of Power. I hope you'll join us at 5pm as we talk to the lawmakers who will be voting on this legislation likely to shut the government down before this day is out. Our eyes this morning were not on Capitol Hill, but on Quantico. As the secretary of war, as President Trump now calls. Pete Hegseth joined the commander in chief at Quantico to deliver what was framed as a pep talk, one focused on esprit de corps and the warrior's ethos, as Hegseth likes to call it. He opened by saying fafo, a warning to our adversaries, and spoke to the people who work in the building as he assembled a room full of top brass that flew from around the world to be at Quantico for this moment. Here's Pete Hegseth.
- [18:38]
Rick Davis
For too long, we've promoted too many.
- [18:39]
Joe Matthew
Uniformed leaders for the wrong reasons, based on their race, based on gender quotas, based on historic so called firsts. We became the woke department. But not anymore.
- [18:53]
Rick Davis
An entire generation of generals and admirals.
- [18:56]
Joe Matthew
Were told that they must parrot the insane fallacy that, quote, our diversity is our strength. Of course we know our unity is our strength. From this morning in Virginia, we want to assemble our panel. For more on this, Bloomberg Politics contributors, Rick Davis, Jeannie Shanzano. Rick is a Republican strategist, partner at Stone Court Capitol, and Jeannie is democracy visiting fellow at Harvard Kennedy School's Ashe Center. It's great to have you both here. Rick, I'm going to start with you. Based on your history working with the military, not only in your time with Senator John McCain, but since then through the McCain Institute, you spent a lot of time preparing nominees for their confirmations. And I know that you have worked with members of the Pentagon on any number of issues, including procurement. We've never really seen a speech like this, at least publicly shown. Right. There were cameras there. You've got a couple of hundred officers in the room. It almost looked like a TED Talk with Pete Hegseth standing in front of the American flag. Was that message delivered? Were the gray hairs rolling their eyes? What did you make of the speech this morning?
- [20:07]
Rick Davis
Yeah, I was a little surprised. You know, when they prepped for this speech, they told us, well, you know, when I talked to a number of the people who were going to be in the room and they said, well, you know, it's probably the articulating a strategy around this new western hemisphere concept they have about homeland defense, maybe roll out a little of the golden dome concept, I mean, things that actually would have been instructive for a group of general staff members, you know, generals and admirals from all over the world. Instead they got a hygiene lesson. Right. I Mean, I'm sure they're all scratching head, going, I cannot believe I flew halfway around the world if you're, you know, in a China billet, you know, to. To show up in a conference room and basically see a performance by the Secretary of War. Really not much to it that they didn't already know.
- [20:56]
Joe Matthew
Right.
- [20:56]
Rick Davis
He went through all these directives that he's sending out, all of which are, most of which are already in the, you know, manuals of discipline and behavior. So I'm sure a lot of these guys are going to be disappointed that there wasn't something of substance that was actually discussed for this big a moment where it's so unusual to have all of them called together basically for a performance.
- [21:23]
Tyler Kendall
Well, Jeannie, given what Rick is outlining here, can you put into context for us just how unprecedented this meeting was, both in size, but also in scope, as we heard both Pete Hegseth, but also President Trump take the stage earlier today?
- [21:39]
Jeannie Shanzano
Yeah, I mean, incredibly unprecedented. There was a post out not that long ago to which the. The Secretary of War responded, talking about the fact that this never happens. And so it's almost, Tyler, like a setup for, like, the Daily show, because you're wondering, my gosh, they're calling in all of these people, these generals, these admirals. This is going to be big, Tyler. I tuned in, and to Rick's point, it was about, like, losing weight, cutting your beard or shaving it off completely, and, you know, this kind of nonsense. And then, of course, the reality is he talked an awful lot with a litany of his culture war comments that he likes to make. He even found time to plug his own book. And of course, he talked an awful lot about things like, we're going to return to a time when we're all going to be judged by the standards of men. Well, that time never passed. Women in the military are always judged by the same standards as men. And by the way, Secretary of War, this is a new world. The Defense Department itself is saying, the biggest threats we faced are cyber drones, satellite space. This is not back in the mid 20th century. So all of it was confounding, and none of it seemed worth dragging all these people in to listen to a talk about a new focus on the military warrior ethos.
- [23:06]
Joe Matthew
That's why it was curious to hear President Trump, who spoke after Hegseth, float the idea of manufacturing battleships again, putting them into service, and reminiscing about how much he loved the movie Victory at Sea. Let's hear from President Trump at Quantico from earlier.
- [23:24]
President Donald Trump
I've never walked into a room so silent before. This is very. Don't laugh. Don't laugh. You're not allowed to do that. You know what? Just have a good time. And if you want to applaud, you applaud. And if you want to do anything you want, you can do anything you want. And if you don't like what I'm saying, you can leave the room. Of course, there goes your rank, there goes your future. But you just feel nice and loose, okay? Because we're all on the same team.
- [23:51]
Joe Matthew
Nobody was nice and loose in that room. In fact, we saw a lot of expressionless faces when they left. Rick, I know you're trying to be careful with your commentary here, but some of the president's critics pointed out the fact that this was a political speech in front of a group of uniformed officers who were used as props today. Is that fair?
- [24:13]
Rick Davis
You know, look, I mean, commander in chief, he's given a wide swath. He made light of the fact that there was no applause in the room after Secretary Hegseth remarks. There was not supposed to be. Right. These are people who have grown up in an environment, these generals and admirals, that they are prohibited from showing any partisan activity in their professionals.
- [24:41]
Joe Matthew
I think our audience needs to hear that. By the way, people think that he flopped today. That's part of the culture.
- [24:45]
Rick Davis
That's part of the culture. In fact, many of them will tell you, and they've told me this, that they don't even believe it's their responsibility to cast a vote on election day because they believe they've chosen service over the, the, the power of having a decision as to who your commander in chief is. So they take this incredibly seriously. And for the president to make light of it, okay, sure, he gets some, you know, a little bit of laughter. But, but, you know, it is an administration that likes its pomp and circumstance. It is an administration that uses the military as a backdrop to strength around the world. And those are the things that the president can decide to do, but they cannot expect in a political speech. They can give it, but they cannot expect anybody in that room to react to it in either a positive or a negative way.
- [25:40]
Tyler Kendall
And part of what we did here today did include a re. Emphasis on some of the policies that we've seen put out by President Trump and Pete Hegseth, including, we heard Hegseth outline slashing as much as 20% of the US military's highest ranking officers. He did float this originally back in May. We know it was in tandem, Jeannie, with the Department of Government Efficiency. But I'd love your view here about the ramifications of that decision. Is this a realistic goal for the Pentagon? How could this impact, really, the optics going forward here?
- [26:14]
Jeannie Shanzano
Yeah, I mean, you just played the clip where the president said, you know, if you don't like it, you can leave, and that would be it. And Pete Hegseth said something similar in his remarks. I don't know if they will get to that number he has talked about, but he did celebrate to a certain extent today the people that he has let go, many of whom were people of color, were women who he said were really responding to previous administrations and to an ethos that no longer is part of the Department of War. And so I assume that that will continue. I think the most chilling things I heard today had to do with the idea from the president of sending troops into cities for training, including Portland, Memphis, Chicago. He talked about that. That is a chilling and not popular idea in the United States. States. And we also heard from Pete Headset, equally chilling, getting rid of the inspector general or diminishing that role. And of course, he himself is under review by that very inspector general. And so all of this in a context of a military that has suffered from issues like sexual assault and other things for a long time. You would hope in normal circumstances Congress would stand up people like Joni Ernst and others who have served, served so notably and so nobly. But yet I have no faith we're going to hear any pushback from Congress, which we absolutely should, to some of these policies they floated today.
- [27:46]
Joe Matthew
Rick, we've only got about a minute left. The president made the point of, and he repeated this a couple of times, enemies, foreign and domestic. Domestic. He said that's part of the oath. And I won't be the first president to use the military to keep our streets safe in this country. As we see troops now deployed to Portland in a headline, the governor of Louisiana asking for deployment in his state as well. How did the president square that issue today that we've seen so much debate around?
- [28:11]
Rick Davis
Look, I mean, he preempted it by going out last week and declaring ANTIFA to be a terrorist organization. I mean, it's part of this overall war on America, you know, and this effort started with immigration, you know, and ridding our country of the murderers and the rapists, you know, as he described it, them getting rid of the real hardcore criminals. And now, you know, a more domestic version of that by going after Antifa and other people who are protesting and causing either damage to property or other people. So it is a big gamble by the president to have this kind of military activity in inside the U.S. all.
- [28:57]
Tyler Kendall
Right, Rick Davis and Jeannie Shanzino, our political panel today, both Bloomberg Politics contributors. We thank you as always. Stick with us. We have Congresswoman Susan Del Bene up next. This is Bloomberg.
- [29:10]
Joe Matthew
Stay with us on Balance of Power. We'll have much more coming up after this.
- [29:17]
Siemens Advertiser
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- [30:00]
Bloomberg Announcer
You're listening to the Bloomberg Balance of Power podcast. Catch us live weekdays at noon and 5pm Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. You can also listen live on Amazon Alexa from our flagship New York station. Just say Alexa. Play Bloomberg 11:30.
- [30:19]
Tyler Kendall
Tyler Kendall here alone alongside Joe Matthew in Washington. And we have some breaking news. Crossing the Bloomberg terminal, Eli Lilly said to be in, quote, active discussions with the Trump administration on drug pricing. This coming in an emailed statement from a spokesperson after that White House event we saw earlier today, Joe, where we saw that announcement, President Trump with Pfizer in a bid to try to lower some prescription costs for Medicaid.
- [30:44]
Joe Matthew
Yeah, it's hard to tell exactly what the deal is. The president said we'd see drug prices dropping by something around a thousand percent. So the math is a little difficult on this. But just seeing Pfizer in the Oval Office with Donald Trump earlier today had a real impact, sending the shares higher. They're talking about a $70 billion investment into R and D. And so, yes, indeed, we hear from Lilly shortly thereafter. And that news as well, sending shares higher. Lilly stock is up about 3 1/2% to retake $750. So we'll keep tabs on that for you. Maybe it's the next company we see at the White knows.
- [31:14]
Tyler Kendall
Right? Exactly. And it's shaping up to be, of course, a busy day in Washington, as it always feels these days, Joe. And of course, we are now on a shutdown watch. We are less than 11 hours away from a potential government shutdown. We haven't really seen any indication from either side that they're going to step away from what really feels like the brink at this point. We saw this high stakes meeting yesterday at the White House Republican and Democrat Congress. Democratic congressional leaders joined President Trump, but after that, we didn't really see much movement when it came to the negotiations. But to get an inside look, we're joined now by Democratic Congresswoman Susan Del Bene. She represents Washington's First District. She's also the chairwoman of the Democratic Congressional Campaign Committee. Congressman, thanks. Congresswoman, thanks so much for joining us here at Bloomberg. I'm wondering, if the government does shut down, what are the contingency plans here? Is there an escape route for the possibility of reopening the government if that happens?
- [32:15]
Congresswoman Susan Del Bene
Well, I'm here at the Capitol right now. There should be work happening right now to find a solution, to go forward. But House Democrats are here. House Republicans aren't even in town. They aren't planning to be in town for the rest of the week. They clearly don't think this is a priority. I guess they're looking for a shutdown. But we are here ready to work. Stand up for the American people. That's our job. And we're going to be here all the way through to fight for the American people.
- [32:45]
Joe Matthew
Well, it's a precarious moment, Congresswoman, and I'm assuming you are bracing for a shutdown here based on the rhetoric that we're hearing from President Trump. He was asked today if it was inevitable. He said he doesn't. Well, nothing's inevitable, but he doesn't see a way around this. In the video that President Trump posted last evening following his first ever meeting with Hakeem Jeffries. I don't know if you saw this. An AI generated deep fake in which Chuck Schumer is talking about Democrats love for illegal immigrants. And your leader in the House, Hakeem Jeffries, in this faux Mexican garb that a lot of people consider not only offensive but racist. Where are we in this debate? How do we get out of this?
- [33:28]
Congresswoman Susan Del Bene
Well, the video was disgusting and racist and pretty much says exactly where the president is and Republicans are. They're not trying to work to fund the government. They seem okay with a shutdown. We need folks, we need leaders who are going to listen to their communities, who are going to come to the table, who realize that millions of people are losing health care and going to see costs skyrocket because of inaction from Republicans. Hearing it from all over the country. If Republicans were listening to their communities, they'd come to the table and make sure we protect health care and we keep the government open. That's why we're here. We're ready to work. Republicans seem disinterested and the president definitely seems like he's, he wants a shutdown.
- [34:18]
Tyler Kendall
But, but Congresswoman, just how hard would it be for Congress to pass an extension when it comes to the Obamacare tax credits? Realistically, how long do you think negotiations would need to last? Are we talking about weeks here in order to get a deal?
- [34:35]
Congresswoman Susan Del Bene
Well, let's be clear. The fiscal year always starts on October 1st. Republicans have known for a long, long time that we needed to have our funding bills done by now. They waited and waited. They were not focused on it. So unfortunately, they put us in this position. And what they need to be doing is working to make sure that we are putting the priorities of the American people first. And in particular, when we talk about health care and the premium tax credits for folks who get their health care from the Affordable Care act exchanges, premium, not notices are going out in October. Open enrollment starts November 1st. While they're out of town, not interested, we actually know that premiums are going to skyrocket for people all across the country. In my state, about 80,000 people are expected to lose health care because we're going to see a 65% spike in premiums for folks on the Affordable Care act because of the tax credits are not being extended. This isn't something that can wait till later. This is something that's happening right now. The number one issue across the country that people want to see is costs going down. Affordability is an issue. Republicans are asleep at the wheel. They have done nothing to help address the needs of American families and their actions have raised costs. Food, health care, housing, all going up under the actions of, of Republican Congress and this administration.
- [36:05]
Joe Matthew
We spoke, Congresswoman, before you joined us with Mike Lawler, your colleague from New York, Republican, of course, serving in a blue state. And I was interested to hear what he said as lines are drawn here. Right. Everybody's playing the blame game. He had his own take on this, but also let us know that he was in favor of negotiating around the extension of Obamacare subsidies. It's kind of a different wrinkle on the Republican line that we've been hearing. And I want you to listen to what he said when he joined us today on Bloomberg. Here's Mike Lawler.
- [36:37]
Congressman Mike Lawler
I think it is foolish to shut down the government. It is going to create Chaos in the markets. It will create chaos for the American people, especially those who rely on the social safety net, border security, our military, veterans benefits, etc. This is entirely unnecessary and does nothing to actually further the work of the American people. It is pure political posturing by my Democratic colleagues because they are not in the majority.
- [37:09]
Joe Matthew
That was just a couple of moments ago, Congresswoman. How would you respond to him?
- [37:14]
Congresswoman Susan Del Bene
Well, first I'd respond that Republicans have the majority in the House, in the Senate, they have the White House, House, they are in charge of everything. If he actually thinks the priority is to support working families, keep the government open, surprise, he's not. Right here in Washington, D.C. we just had a pro forma recession session. Republicans weren't there, empty side of the House. We tried to bring up legislation Republicans refused to recognize. Democrats shut the House down. If he and other Republicans really care about standing up for the American people, keeping the government open, how come they're not even here?
- [37:55]
Tyler Kendall
Well, I am curious about perhaps what we're seeing as a messaging battle playing out when you had President Trump today, over an hour, speaking with reporters from the White House and announcing this initiative to lower some prescription drug costs. When it comes to this agreement between Pfizer and also Medicaid, what do you make of that messaging and that push as the administration is trying to say that they're going to lower health care costs? And health care really is at the center of this debate on the future of government funding.
- [38:26]
Congresswoman Susan Del Bene
First of all, I don't think we have any information on what he's planned. He's also talked about doing 100% tariffs on pharmaceuticals. So I don't know where he stands there at all. But I do know that he is not fighting to make sure that we are protecting health care across this country. It's actions of his administration. It's the big ugly bill that he supported that has cut health care across this country. Millions of people losing health care, that's a terrible decision for our communities. It's also a terrible fiscal decision. We have hospitals already laying off people, rural hospitals that can close, services being pulled back because folks are concerned about where the resources are to help support our health care system. When we have more and more uncompensated care, more people are using the emergency room. That raises cost for everyone. So if you care about health care, you wouldn't have supported the legislation they put in place slashing Medicaid, half a trillion dollar cuts to Medicare, Medicare now, letting the tax credits expire for the Affordable Care Act. All of this we're hurting the American people. People are outraged across the country. If you want to help, come to the table, fix the mess that you made and let's put the American people first.
- [39:48]
Joe Matthew
Congresswoman, we've seen when it comes to the extension of Obamacare subsidies, I want to ask you this question. As not only a member of Congress but as chair of the Democratic Congressional Campaign Committee, it is your job to get Democrats elected to the House. I'm looking at polling from Republican pollster Tony Fabrizio who warned months ago, warned Republicans about what some are now calling the Obamacare cliff, that if these extensions were not made, it would in fact mean the difference in the midterm elections. From a Machiavellian point of view, is that one way that you see Democrats returning to the majority in the House if this is not handled properly?
- [40:29]
Congresswoman Susan Del Bene
Well, that's another reason why this isn't just justifies why this is such an important issue for the American people. 65% increase in premiums in my state. 80,000 people losing health care just because the tax credit's not being extended. This impacts communities all across the country country. So it's got we have to put the American people first. Republicans haven't number one issue, costs going up across the country. Tariffs, the big ugly bill. Republicans continue to raise costs are not making a priority to lower costs. Is that a campaign issue? Absolutely. Democrats are running 15 points ahead in special election across the country. We have great candidates who are going to put American, American families first and it's a big reason why we'll take back the House next year.
- [41:17]
Tyler Kendall
So do you feel what's playing out now in Congress is going to impact the midterm elections? What we're seeing today on Capitol Hill could have these long term ramifications.
- [41:27]
Congresswoman Susan Del Bene
The ongoing work of Republicans to rip apart programs that people depend on, rip apart health care. Absolutely. You're hearing it from people on the ground all already who want folks to stand up for them. And Republicans seem to only be focused on the wealthy and the well connected.
- [41:45]
Joe Matthew
Last full government shutdown was in 2013. That was 16 days. The the record was in 2018. Of course in that case, I guess we call it a partial shutdown. The Pentagon and other agencies were funded. Congresswoman, there are a lot of Democrats who have worried if this happens, we don't have a plan to reopen it. And then you see Russ vote on the other end of Pennsylvania Avenue and many are wondering what would be more detrimental to Democrats and to the country in this case a shutdown or mass layoffs of federal workers. That could follow a shutdown. That's a pretty tough decision to make. How do you see it?
- [42:24]
Congresswoman Susan Del Bene
I think actually you've described exactly where Republicans are Instead of working for the American people, listening to the needs of American families, they're trying to think of what they can do to hurt American families more. That's their response. Not to come to the table to fight to help our communities. They're talking about what more damage they can do. That's clearly their priority. That tells you, I think, everything you need to know. We need folks who are going to stand up for our communities first. Democratic Democrats are here doing that. Republicans want to hurt communities more. They've talked about what they want to do to hurt communities more. And then House Republicans can't even show up for work.
- [43:07]
Joe Matthew
Well, as Maya McGuinness calls it, it's fiscal New Year's Eve, Congresswoman. It's good to have you with us as we stare down the barrel of this likely shutdown. Susan Del Bene, the Democrat, of course, representing Washington's first District and chair of the dccc. Thanks for listening to the Balance of Power podcast. Make sure to subscribe if you haven't already at Apple, Spotify or wherever you get your podcasts. And you can find us live every weekday from Washington, D.C. at Noontime Eastern@Bloomberg.com.
- [43:37]
Bloomberg Announcer
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