Tag: government shutdown
Lavish Spending On Cabinet Officials As Federal Workers And Troops Go Unpaid

Lavish Spending On Cabinet Officials As Federal Workers And Troops Go Unpaid

The government shutdown has not stopped President Donald Trump and his henchmen from spending cash on vanity projects, such as White House renovations and private planes.

About 1.4 million federal workers are not receiving paychecks because of the shutdown, and many have become Uber drivers and DoorDash deliverers to make ends meet.

“I’m driving Uber at night so I can feed my 15-year-old son,” Daniel Scharpenburg, a longtime IRS employee, told a federal worker roundtable in Kansas.

Scharpenburg shared his story days before bulldozers began demolishing portions of the White House to make way for a rococo ballroom that will cost an estimated $200 million. Trump has publicly fantasized about building such a structure since before he was president.

The demolition work signals another broken promise by Trump, who said in July that the new ballroom “won’t interfere with the current building.”

The ballroom is allegedly being funded by Trump himself and a cadre of corporate donors, like R.J. Reynolds and weapons manufacturer Lockheed Martin. Because the project involves a national monument, these donors will receive a federal tax write-off for their contributions.

“We are 20 days into the Republican Shutdown,” Rep. Pramila Jayapal (D-WA) wrote on X. “Health care costs are skyrocketing and federal workers aren’t getting paid. What is Trump doing? Building his gold plated ballroom.”

Thousands of dollars have also been spent on gold adornments for the Oval Office and enormous banners featuring Trump’s face that now hang from some federal buildings.

Trump isn’t the only one benefitting from government largesse during the shutdown. It was reported last week that the Coast Guard spent $172 million on two Gulfstream private jets for Homeland Security Secretary Kristi Noem.

The Coast Guard insists the jets are part of a necessary upgrade, but it has not explained why it spent more than double its initial estimate of $50 million to procure them. It is also not clear where the funding for the jets came from.

Noem has already been scrutinized for using government planes for personal travel and living rent-free in a residence typically reserved for the Coast Guard’s commandant. Noem maintains these measures are necessary to ensure her personal safety.

“We are deeply concerned about your judgment, leadership priorities, and responsibility as a steward of taxpayer dollars,” Democrats on the House Appropriations Committee wrote in a letter to Noem, requesting more details on the private jet expenditure.

The Department of Homeland Security (DHS) has also spent $51 million of taxpayer funds on a series of television ads this year thanking Trump for “securing the border” and defending ICE’s brutal deportation campaign.

Eyebrows were also raised by an announcement that the U.S. government would spend $20 billion on a currency swap with Argentina to help the nation’s fledgling economy.

This could all become a problem for Republicans. Many Americans, not just federal workers, are struggling with the rising costs of groceries and housing. Lavish spending by the White House risks making them look out of touch with those concerns.

It is likely to get worse when tax credits that help 22 million Americans afford health insurance plans expire at the end of this month. In Georgia, home to one of next year’s most competitive Senate races, some health care premiums are expected to quadruple as a result.

Democrats have made extending these subsidies a condition of reopening the government.

Reprinted with permission from American Journal News

Now Republicans Are Using Hunger As A Weapon In Shutdown Fight

Now Republicans Are Using Hunger As A Weapon In Shutdown Fight

Starving a poor, defenseless population worked in Gaza. Why not try it in the U.S.?

That seems to be the Trump regime’s emerging tactic for ratcheting up pressure on the Democratic Party to abandon its attempt to restore the Medicare cuts and Obamacare subsidies as the price for reopening the government.

In mid-October, the Department of Agriculture told every state agency administering the Supplemental Nutrition Assistance Program that they should stop sending in monthly files with the names of beneficiaries. Those files are used to send electronic food-stamp cards worth an average of $187 a month to more than 41 million people across the U.S. That’s one in out of every eight Americans.

During previous government shutdowns, Congress took steps to assure food assistance continued to flow. Earlier this year, the Republican-controlled Congress and the Trump administration agreed to an additional $300 million for the Special Supplemental Nutritional Program for Women, Infants and Children. WIC provides extra nutrition assistance to about 6 million low-income, expectant mothers and young children.

But the SNAP program is far larger, costing the federal government about $8 billion a month. State officials are beginning to ring alarm bells about the looming SNAP shutdown. “If SNAP funds are not delivered by the federal government, the State of Illinois does not have the budgetary ability to backfill these critical resources,” the state’s Department of Human Services said in a statement late last week.

Illinois Gov. J.B. Pritzker, the most vocal governor resisting the Trump administration, asked: “Why is it that they can find the money during a shutdown to pay their masked federal agents wreaking havoc in our communities but not help people in need put food on the table? … The very least they could do is preserve SNAP access for low-income families struggling to feed their kids.”

Connecticut officials warned the federal government electronic processing system could also be shut down, which would cut off access to any food assistance dollars that remain on cards from previous months. The Associated Press reported last week that state officials in Minnesota told all counties and Native American tribes not to approve new SNAP applications, and planned to tell recipients tomorrow that monthly benefits will end in November, barring any changes.

Any prolonged shutdown in federal food assistance will have devastating health consequences. Food insecurity and housing insecurity are major contributors to ill-health in the U.S. One in eight Americans depend on food stamps and even $100 billion a year is not enough to meet the need, witness the charity-dependent food banks that exist in every major city in the country and many ex-urban and rural areas. The U.S. spends even less on subsidizing housing than it does on subsidizing food.

Yet both programs have been targeted for cuts by the Republican-run Congress. The One Big Ugly Bill signed into law last July imposed work requirements in the food stamp program for adults aged 55 to 64 and parents with children 14 and over.

Food isn’t the only area where the Trump regime is moving to administer maximum pain in its efforts to reopen the government without negotiating compromises. Last week, shortly after flip-flopping on cutting off Medicare payments to physicians, it announced it would cease offering special assistance to rural hospitals and for telehealth, programs whose funding expired at the end of September. StatNews reports “ground ambulance transport services and Federally Qualified Health Centers could also be affected by the pause in some payments.”

Most of these cuts will have their deepest impact on states run by Republicans. But that doesn’t seem to matter to the Trump administration, which could care less about the collateral damage in its war against anything and everything that smacks of social decency.

Merrill Goozner, the former editor of Modern Healthcare, writes about health care and politics at GoozNews.substack.com, where this column first appeared. Please consider subscribing to support his work.

Reprinted with permission from Gooz News

Mike Johnson

Republicans Still Yearn To Kill Obamacare, But Fear 'Political Disaster' If They Do

The standoff over the federal shutdown has exposed deep fractures within the GOP, particularly around health care — a longstanding vulnerability for Republicans.

The New York Times highlighted in a report Sunday that while Democrats insist they will not support a spending deal without extending the expiring tax credits under the Affordable Care Act (ACA) that safeguard coverage for millions, Republicans are split between ideology and electoral reality.

On one end, hard-line conservatives still press to eliminate the ACA outright; on the other, pragmatists recognize that wiping it out without a credible replacement could inflict “a political disaster” on their party, per the report.

The shutdown has forced the GOP into a public tug-of-war over what to do with a law they largely oppose but cannot realistically undo without major risk.

House Speaker Mike Johnson (R-LA) insisted the dispute is not about health care, calling Democrats’ insistence on subsidies a “red herring” that distracts from the funding fight.

At the same time, top Republicans such as House Majority Leader Steve Scalise (R-LA) pledged to vote against extending the credits, arguing they would “bail out insurance companies,” even as many recipients live in GOP-held districts.

At least 14 House Republicans and several senators signaled they would support a renewal of the credits through 2027, recognizing what some advisers called “a potential political catastrophe for the G.O.P.” if coverage were lost.

The report noted that the broader dynamic reveals why the party remains stuck. Even though Republicans have long pledged to “repeal and replace” the ACA, they have repeatedly failed to articulate what “replace” means in practice. The 2017 Senate health care bill collapsed amid conservative-moderate splits, leaving GOP leaders without an alternative mapped out.

According to the report, Democrats "have forced the G.O.P. to wrestle publicly with its divisions about what to do with the health care law, which most Republicans revile but many recognize would be impossible to unravel without bringing political disaster to their party.”

Reprinted with permission from Alternet


Still No Jobs Report, But Trump's Labor Market Isn't Looking Good

Still No Jobs Report, But Trump's Labor Market Isn't Looking Good

Donald Trump refuses to release the September jobs report. While the ostensible reason is the government shutdown that began October 1, two days before the scheduled release date, Trump could decide the release was an essential government function.

Also, according to Erica Groshen, a former commissioner of the Bureau of Labor Statistics (BLS), the release was almost certainly prepared and ready to go by the first. Ordinarily, the president would not see the report until the afternoon before the release, but Donald Trump has made it clear he doesn’t care about rules and norms. We can assume that he has seen the report, and based on its contents, Trump decided not to make it public.

Anyhow, without actually seeing the report, all we can do is speculate. But there is some labor market data coming from private sources, which do give us information.

A friend called my attention to the job listing firm Indeed’s index of job postings. It shows continuing weakening of the labor market.

While all of us have been saying that we are in a low hiring, low firing labor market, where there is little job turnover, that has been true since the spring. What is striking in this graph is that the listing index continues to move downward. The index for the beginning of October was more than 5 percent below the index number at the start of April.

This means that, in order not to have a deterioration in the labor market, we would also have to see a decline in the number of people quitting or being fired of five percent. That could be the case, there was a sharp fall in the number of separations BLS reported for August in the JOLTS data. (We don’t have September data.)

However, the monthly data are highly erratic. The average for the last three months (June, July, August) was less than 0.5 percent below the average for the prior three months (March, April, May). This would indicate little change in the firing/quit story to match the decline in hiring shown by the Indeed index.

We should be cautious about making too much of this index. It is useful, but it is just one piece of data, but we have to try to use what is available until Trump chooses to share the government data with the rest of us.

Dean Baker is a senior economist at the Center for Economic and Policy Research and the author of the 2016 book Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer. Please consider subscribing to his Substack.

Reprinted with permission from Dean Baker.

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