Rep. Mike Lawler Talks Government Shutdown

Summary

Podcast Summary: Bloomberg Talks

Episode: Rep. Mike Lawler Talks Government Shutdown
Date: September 30, 2025
Host: Bloomberg
Guest: Rep. Mike Lawler (R-NY-17)

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Overview

This episode of “Bloomberg Talks” centers on the looming threat of a U.S. government shutdown. Congressman Mike Lawler, a Republican representing New York’s 17th district, discusses the political stalemate, the consequences of a shutdown, ongoing negotiations around healthcare subsidies, and broader economic impacts. The conversation is fast-paced, candid, and reflects Lawler’s frustration with what he characterizes as political posturing from Democratic leadership.

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Key Discussion Points & Insights

1. The Likelihood and Consequences of a Shutdown

• Shutdown Imminent: Lawler expresses regret about the likely government shutdown, squarely blaming Democratic leaders for the impasse.
• Detrimental Effects: He warns of significant fallout—from market disruptions to impacts on social safety nets, border security, military operations, and veterans’ benefits.
  • Quote: “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.” (Mike Lawler, 00:53)

2. Political Blame and the Role of Continuing Resolutions (CRs)

• Blame Game: Lawler accuses Democrats, particularly Hakeem Jeffries and Chuck Schumer, of “changing their position entirely” on CRs compared to previous years.
• His Voting Record: States he’s consistently supported all CRs, regardless of party, to keep government open for final appropriations negotiations.
  • Quote: “I was against it when Republicans wanted to shut down the government and I'm against it here when Democrats want to do it.” (Mike Lawler, 01:27)
• Senate Inaction: Points to a House-passed clean CR “sitting in the Senate,” claiming Schumer refuses to act.

3. Negotiations Around ACA Subsidies

• Short-Term Extension Advocacy: Lawler supports a one-year extension of ACA (Obamacare) subsidies, linking their origin to COVID-19 job losses.
  • Quote: “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.” (Mike Lawler, 02:54)
• Broader Healthcare Concerns: Raises the question of why such subsidies are still needed if the Affordable Care Act was supposed to lower costs; advocates for bipartisan efforts to reduce overall healthcare costs.
  • Quote: “If the Affordable Care act was supposed to reduce health care premiums, was supposed to increase access, why is it not working as intended 15 years later?” (Mike Lawler, 04:17)

4. Economic Impacts & Republican Messaging

• Market and GDP: Points out that previous shutdowns didn’t harm the stock market but emphasizes potential impacts on GDP.
  • Quote: “We've seen in shutdowns prior, for instance, the stock market has generally grown. The biggest concern has been on GDP.” (Mike Lawler, 06:22)
• Labor Market Anxiety: Acknowledges concerns about unemployment; stresses the need for stability to support ongoing economic recovery.
• Democratic Precedent: Criticizes Democrats for not following their past statements about the risks of shutdowns and the importance of CRs.

5. Implications for the Federal Reserve and Economic Data

• Fed Data Disruption: Addresses the risk that a shutdown could delay jobs data crucial for the Federal Reserve’s decision-making.
  • Quote: “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.” (Mike Lawler, 08:11)
• Push for Rate Cuts: Criticizes the Fed as being “late to the game” on both raising and now reducing interest rates, and calls for more aggressive cuts.
  • Quote: “Jerome Powell needs to advance rate cuts in a serious way so that we can continue to move this economy in the right direction.” (Mike Lawler, 08:57)

6. White House Threats of Layoffs

• Layoff Concerns: Responds to reports of a White House memo regarding possible permanent layoffs as a result of a prolonged shutdown.
  • Quote: “I don't agree with permanent layoffs. But this is the challenge. When you have a 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.” (Mike Lawler, 09:44)
• Strategic Messaging: Urges Democrats to pass a clean CR to avoid such staff cuts and position disruptions.

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Notable Quotes & Memorable Moments

• On Shutdown Politics:
  “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.” (Mike Lawler, 01:13)
• Healthcare Reflection:
  “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.” (Mike Lawler, 04:41)
• Fed Policy Frustration:
  “Fundamentally, I believe the Fed has been late to the game, both when they needed to raise interest rates in the past and, and now in terms of reducing interest rates, I think they need to cut interest rates far greater than they have.” (Mike Lawler, 08:20)

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Timeline of Important Segments

• 00:29 – 01:30: Lawler details imminent shutdown, assigns blame, discusses CRs
• 02:29 – 03:49: ACA subsidies debate and risks of linking negotiations to shutdowns
• 04:17 – 05:43: Long-term perspective on healthcare subsidies, cost, and bipartisan cooperation
• 05:43 – 07:44: Economic impacts of a shutdown, labor market anxiety, Republican messaging
• 07:44 – 09:22: Impacts on the Federal Reserve, jobs data, and criticism of monetary policy
• 09:22 – 10:45: Discussing potential layoff threats and the leverage of shutdown tactics

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Tone & Takeaways

Congressman Lawler is direct, frustrated, and resolute in his message: government shutdown is a political tactic that ultimately hurts the country, not just one party. He considers CR passage a matter of common sense, supports incremental healthcare subsidy extensions, and is critical of both current Democratic leaders and the Federal Reserve’s pace on rates. The episode provides insight into Capitol Hill’s combative atmosphere and the practical stakes as a shutdown looms.

Transcript

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[Bloomberg Announcer]

Bloomberg Audio Studios Podcasts Radio.

[Bloomberg Host]

News 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?

[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.

[Bloomberg Interviewer]

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.

[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 21, finalize all appropriations for fiscal year 26, and come to an agreement on these ACA subsidies for the next year or two. So there's no reason to shut the government down. In the middle of those negotiations, you.

[Bloomberg Host]

Wonder what would happen if, 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, what's the long term on this?

[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 health care 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, the very people that you're trying to help.

[Bloomberg Interviewer]

Well, sticking with this idea that higher drug costs are a Main a point, a point of 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?

[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 package across the finish line that was critical for tax certainty. We don't need a government shutdown to create unnecessary chaos. And 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.

[Bloomberg Host]

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?

[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, 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.

[Bloomberg Interviewer]

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?

[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. 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 Goldin of Maine, every single House Democrat either didn't vote or voted no on keeping the government funded almost two weeks ago.

[Bloomberg Host]

Do you take the White House quickly, Congressman, at their word when it comes to the layoffs?

[Congressman Mike Lawler]

Look, I don't, I don't think they're kidding around. If, if they intend to do that, they've made that clear. And again, why, 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.

[Bloomberg Interviewer]

All right. Republican Congressman Mike Lawler of New York, thank you so much for joining us here on Bloomberg Television and radio today.

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