President Donald Trump’s former legislative affairs director has predicted that Republicans are likely to cave on the government shutdown despite all of the bravado on display from the White House.
Marc Short, who also served as chief of staff to former Vice President Mike Pence, said on NBC News’ Meet the Press panel Sunday that it was shrewd of Democrats to put Obamacare subsidies in the plan, which will ensure insurance companies put their weight behind the Democrats.
“And so here we are, 100 percent increase in prices, and basically you have Democrats and Republicans, and Republicans are opposed to any free market reforms, eventually they’re going to do this,” Short said.
Short, who served as Trump’s legislative affairs director from 2017 to 2018, blamed Democrats for the shutdown but predicted they would ultimately come out ahead.
“I think, sadly, Republicans are going to cave on this in the end,” said Short.
The Affordable Care Act, i.e. Obamacare, has given private insurance companies access to millions of new subscribers, thanks to tax credits introduced in 2021, and extended in 2022, which made insurance affordable to low and middle income people.
The tax credits are slated to expire in December if the Republicans in Congress refuse to extend them. The expiration would more than double the price of premiums for most.
All this gives private insurance companies incentive to back the Democrats in the shutdown standoff since they risk losing a steady stream of government-subsidized revenue from new enrollees.
The shutdown was in its sixth day on Monday. Democrats want Republicans to concede on healthcare, including extending the tax credits as well as reversing the Medicaid cuts in Trump’s “big, beautiful” bill passed this summer. The Republicans say negotiations cannot happen until Democrats agree to a stopgap funding measure that will keep the government open till November 21.
Meanwhile, Trump has been blaming the Democrats incessantly, including with vulgar AI-generated posts on social media showing House Minority Leader Hakeem Jeffries in a sombrero while mariachi music played in the background. He has also threatened to lay off thousands of federal workers if the shutdown continues.
