The federal government will run out of money and partially shut down at midnight barring a last-minute deal between congressional Republicans and Democrats that appears unlikely. The Times-Picayune | Baton Rouge Advocate’s Mark Ballard explains what that would mean for Louisiana: 

Perhaps the most immediate effect for Louisiana would be an end, at least temporarily, to flood insurance. The National Flood Insurance Program will expire unless the Senate accepts without changes the House-passed resolution to continue government operations for another seven weeks. About 458,000 of Louisiana’s home and business owners have flood insurance. Current policies will remain in effect until their expiration dates, but no new policies will be written and no existing policies will be renewed until the program is reauthorized.

The New York Times’ Karoun Demirjian provides a helpful backgrounder on how shutdowns work and which agencies will be most affected. Bottom line: While “essential” federal workers such as air traffic controllers will be forced to stay on the job, no one will get paid until Congress settles its differences. 


The consequences of not renewing enhanced ACA credits

The renewal of tax credits that reduce premiums for Affordable Care Act coverage has emerged as the biggest impasse in negotiations to avert a federal government shutdown. Most congressional Republicans are opposed to extending the credits, with Democrats in favor. A new report from the Urban Institute breaks down the changes in health care spending and uncompensated care if the credits are allowed to expire: 

If Congress doesn’t extend enhanced PTCs after 2025, 4.8 million people would become uninsured, resulting in health care spending declines of $32.1 billion. Around $14.2 billion less would be spent on hospital services, $5.1 billion on office-based physician services, $6.9 billion on other health care services, and $5.8 billion on prescription drugs. The expiration of the enhanced PTCs would also result in a $7.7 billion increase in uncompensated care sought by the uninsured, with the burden falling on all provider types: about $2.2 billion on hospitals, $1.0 billion on physician offices, $3.1 billion on other services, and $1.5 billion on prescription drugs.

In Louisiana, 85,000 people would become uninsured, resulting in health care spending declines of $705 million. The state would see a $200 million increase in uncompensated care. 


Keep WIC operating during government shutdown

The federal Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) finances healthy foods and other support for pregnant and postpartum women and their children. Zoe Neuberger of the Center on Budget and Policy Priorities explains ways the Trump administration can keep WIC operating during a federal government shutdown: 

The Department of Agriculture (USDA) could: immediately distribute WIC’s $150 million contingency fund, as it did when the government partially shut down at the start of the 2014 fiscal year. While modest compared to the $8.2 billion the program needs for the full year, the contingency fund would allow the program to continue operating uninterrupted for about a week.

State leaders also have options available to keep the crucial program running:

To allow operations to continue uninterrupted and assure families who need help that they can get it even if the shutdown lasts more than a couple of weeks, states should commit now to using their own funds to cover a temporary gap. … Without the assurance of state stopgap funding, state WIC officials would face a terrible dilemma: either stop enrolling some or all new eligible individuals to stretch existing funds further or continue normal operations but risk running out of funds before the shutdown ends.

Action needed on abandoned oil wells

Recent reporting from The Times-Picayune | Baton Rouge Advocate documented how Louisiana has thousands of abandoned oil wells off its coast. The newspaper’s editorial board explains the dangers that these platforms pose:

Some of these wells or platforms leak oil, methane or other water or air pollutants. Some of them are unseen below the surface, where they can snag and sink boats moving through what looks like open water. Some seem safe enough now, but can cause various problems if they collapse. These dangers must not be allowed to fester. The state should take numerous steps to reduce the risks. 

There are legal pathways to deter future abandonment of oil and gas wells in state waters:

Bankruptcy laws should be amended so that environmental responsibilities, just like IRS obligations, must be met before any other obligations are either met or excused. Penalties for failing to cap wells or properly dismantle platforms should be strengthened, and requirements for companies to set aside money at the start for plugging the wells should reflect the actual cost of plugging them, not something less.

Number of the Day

1,094% – Percentage increase in CEO compensation from 1978 – 2024. For comparison, a typical worker’s compensation only increased by 26% during the same time period. (Source: Economic Policy Institute)