Government Shutdown Enters Fourth Week, Harming Businesses and Threatening Health Care Stability 

• The federal government shutdown has entered its fourth week, stemming from a legislative impasse between Congress and the White House, causing significant economic disruption.

• A key point of contention is the looming expiration of Affordable Care Act (ACA) subsidies, and Republican leaders are now considering a long-term spending bill that could extend into 2026 to end the shutdown.

• The shutdown is harming the business community by halting critical Small Business Administration (SBA) loan programs and creating economic uncertainty regarding health care premiums and potential permanent federal workforce reductions.

The federal government shutdown, which began Oct. 1, is now finalizing its fourth week, with no clear resolution in sight as the U.S. Congress and the White House remain at a legislative impasse. This failure to pass a funding agreement is causing significant and unnecessary disruptions to the economy, directly harming the business community and creating widespread uncertainty. A prolonged shutdown is anti-business and stifles economic growth that is critical for the Detroit Region.

The political stalemate was reinforced Oct. 20, when Senate Democrats, for the 11th time, rejected a Republican-led stopgap funding bill that would have funded the government through Nov. 21. The 50-43 vote highlights the deep partisan divisions that prevent a resolution. With that stopgap measure now considered stale, Republican congressional leaders are making plans for a new spending bill to end the shutdown.

A central point of contention is the looming expiration of enhanced Affordable Care Act (ACA) subsidies at the end of the year. Bipartisan discussions have floated a potential vote on extending the subsidies once the government reopens, but these talks have not gained traction amid the shutdown. The issue is creating anxiety among House Republicans, with 13 vulnerable members sending a letter to Speaker Mike Johnson on Tuesday urging him to “chart a conservative path” forward on the credits immediately after the shutdown ends. They warn that allowing the credits to lapse would cause “real harm” to constituents and that millions of Americans face “skyrocketing health insurance premiums”.

Party leaders remain far apart, trading barbs on the Senate floor. Senate Majority Leader John Thune accused Democrats of wanting to keep the government closed to serve their own purposes, while Minority Leader Chuck Schumer fired back that Republicans seem “happy not to negotiate”.

The Detroit Regional Chamber is actively monitoring and collecting information on the shutdown’s damaging effects on the private sector and the broader economy. A stark example of this harm is the closure of the Small Business Administration’s loan programs, which are responsible for supporting approximately $860 million in loans to 1,600 small businesses every week. Halting this critical source of capital prevents businesses from expanding, hiring, and investing in the economy.

This shutdown also introduces a unique and damaging element of uncertainty. The administration has indicated it might use the shutdown to implement permanent reductions in force (RIFs), rather than temporary furloughs, for certain federal employees. This action could permanently alter federal programs that businesses rely on and is likely to face legal challenges, further extending instability.

The health care debate adds another layer of economic risk. With the Nov. 1 open enrollment date for ACA plans fast approaching, state insurance officials have warned that expected premium hikes are already being factored into insurance rates. This uncertainty not only impacts millions of families but also creates instability in the health care market, a vital sector of the economy.

The current political dynamics suggest this shutdown could be on the longer end of the U.S. historical norm. GOP leaders are now considering a longer-term continuing resolution (CR) that would likely postpone the next funding deadline until 2026. House Majority Leader Steve Scalise confirmed a longer stopgap is under consideration. While the most likely option would run until mid-to-late January 2026, the exact length is a point of internal debate among Republicans. Some conservative hard-liners are pushing for a deadline in April 2026 or later, while appropriators who need to craft full-year spending bills prefer a shorter timeline. President Donald Trump’s approval will be key to passing any reworked CR through Congress.

The Detroit Regional Chamber supports the U.S. Chamber of Commerce’s call for policymakers to end this damaging stalemate and reopen the government. Restoring government function is essential to restarting critical programs, like SBA loans, providing certainty to the market, and addressing pressing policy issues in an orderly fashion. A functioning government is a prerequisite for a thriving economy.