CNBC explains the federal government shutdown

I decided to share something serious about the federal government shutdown today instead of something funny. I'll probably get to the comedy on Sunday, when Saturday Night Live returns. I begin with CNBC explaining Why This Government Shutdown Is Different.

The federal government shuts down when lawmakers in Congress cannot agree on a budget. This has occurred at least 20 times over the past 50 years according to the investment team at Truist. The historical record suggests that there will be minimal impact on markets or the broader economy, barring a prolonged shutdown. But this time could leave a mark on thousands of federal workers who may be permanently fired if a shutdown were to occur.

The shutdown looks like another opportunity for Russell Vought to implement more of Project 2025 regarding the federal workforce. Vought did say he wanted to traumatize federal employees and the threat of firing them instead of merely furloughing them would certainly do that, to say nothing of following through and laying them off.

That's what Vought and others in the administration want from the situation. CNBC explains why Congressional Democrats are doing this in Why Health Care Is At The Center Of The U.S. Govt. Shutdown.

If Congress doesn't extend some Affordable Care Act tax credits, health-care premiums are expected to rise at the end of the year for some Americans. Lawmakers could not agree on extending the credits, partially leading to the current government shutdown.

Unlike most of the unpleasant provisions of the Big Brutal Bill, which won't take effect until after the 2026 midterm elections, ending the ACA subsidies would be felt before the midterms. That would not be good for Congressional Republicans, so enough of them might join the Democrats in voting to restore them. Let's hope.