Today's News: Trump May Negotiate Over Healthcare, But Threatens To Withhold Federal Worker Pay
Photo: Tierney L. Cross/The New York Times
Overview
Date: October 7, 2025
Summary: The government shutdown is now in its seventh day. Democrats are demanding the extension of expiring Affordable Care Act (ACA) subsidies, arguing that their lapse will double premiums for millions of Americans, including many Trump voters. Republicans, while divided, largely insist on reopening the government before engaging in negotiations on healthcare. The White House, led by President Trump, has employed pressure tactics, including threatening mass layoffs of federal workers and, more recently, suggesting that furloughed employees may not receive back pay after the shutdown, despite a 2019 law. This back pay threat, based on a new White House memo reinterpreting the law, has drawn criticism from Democrats, federal employee unions, and even some Republicans, who warn of political backlash and question its legality. The situation remains deadlocked, with both sides blaming the other for the crisis.
Sources
The New York Times - Health Care Politics Bolster Democrats in Shutdown Fight
CNN - White House draws out mass federal firings timeline as GOP grows squeamish in funding fight
The Washington Post - Furloughed workers not guaranteed back pay after shutdown, OMB claims
The Washington Post - Trump hints at health care deal to end shutdown, but key hurdles remain
Fox News - Senate stalls on shutdown vote amid warning furloughed workers may lose pay
Key Points
Centrality of ACA Subsidies: The primary sticking point causing the government shutdown is the Democratic demand for an extension of enhanced Affordable Care Act (ACA) subsidies, which are set to expire at year-end. Democrats emphasize that millions of Americans will face doubled insurance premiums if these subsidies lapse, impacting many Republican-leaning districts.
Political Blame Game: Both Democrats and Republicans are actively engaged in blaming the other party for the shutdown and its consequences. Democrats assert they have the political upper hand due to the healthcare issue, while the White House and GOP leaders accuse Democrats of forcing the shutdown.
White House Pressure Tactics: The Trump administration has employed various strategies to pressure Democrats, including threatening mass layoffs of federal workers and, more recently, suggesting that furloughed employees may not receive back pay.
Dispute over Federal Worker Back Pay: A new White House Office of Management and Budget (OMB) memo reinterprets a 2019 law (Government Employee Fair Treatment Act) to argue that Congress must explicitly appropriate funds for back pay, rather than it being automatic. This has become a new point of contention and leverage.
Trump’s Shifting Stance: President Trump has shown a fluctuating position, at times expressing openness to a healthcare deal, but then quickly walking back comments or clarifying that no negotiations would occur until the government reopens. His comments on federal worker back pay also vary, stating it “depends on who we’re talking about.”
Republican Divisions and Concerns: While GOP leadership insists on reopening the government before negotiations and largely opposes a “clean” extension of ACA subsidies, there are notable concerns among rank-and-file Republicans about the political blowback from the shutdown, particularly regarding premium increases and the denial of back pay for federal workers.
Impasse on Negotiation Conditions: Democrats insist on a firm commitment or deal on ACA subsidies as a condition for reopening the government, while Republicans maintain that the government must be reopened first before any substantive negotiations can begin.
Unique Highlights
Specific Numbers on ACA Impact: The New York Times, citing KFF data, highlights that over half of all Affordable Care Act beneficiaries live in Republican-represented congressional districts, with high concentrations in Southern states like Florida, Georgia, Mississippi, and South Carolina.
Trump’s Private Conversation with Democratic Leaders: The New York Times details a private Oval Office meeting where Senator Chuck Schumer and Representative Hakeem Jeffries warned President Trump of the political pain if Obamacare subsidies expired, a point Trump reportedly didn’t dispute but vowed to deflect blame.
Russell Vought and Project 2025: CNN and The Wall Street Journal mention OMB Director Russell Vought’s role in recommending agencies for cuts and his ties to Project 2025, a conservative blueprint advocating for major government reductions.
White House Layoff Strategy Nuances: CNN reveals the White House’s internal shift in strategy to delay mass federal layoffs to appear as though Democrats “truly forced our hand” and to “not appear gleeful about people losing their jobs.”
Specific Legal Interpretation and OPM Guidance: NBC News and The Washington Post detail the White House’s specific reinterpretation of the “subject to the enactment of appropriations Acts ending the lapse” clause in the 2019 Government Employee Fair Treatment Act. NBC News also highlights that the Office of Personnel Management’s (OPM) FAQ page initially referenced the 2019 law for retroactive pay but later removed the reference.
Antiabortion Group’s Demand: The Washington Post notes that antiabortion groups like Susan B. Anthony Pro-Life America are insisting on the Hyde Amendment (prohibiting federal funds for abortions) being attached to any new ACA legislation, a potential hurdle for compromise.
GOP Compromise Ideas: The Washington Post outlines specific theoretical Republican compromise options for ACA subsidies, such as “grandfathering” in some enrollees, limiting subsidies to ages 60-64, or instituting a sliding scale to end “zero-premium plans.”
Lawmaker Reactions to Back Pay Memo: Fox News captures immediate reactions from Republican Senators, with Shelley Moore Capito noting her “phones are lighting up” and Thom Tillis calling it “bad strategy.” Senator Brian Schatz (Democrat) emphatically stated, “‘shall’ is relatively straightforward” regarding the 2019 law.
White House Efforts to Mitigate Impact: The Wall Street Journal mentions the White House’s action to use tariff revenue to keep money flowing to the WIC food program, an attempt to lessen the shutdown’s impact amid pressure tactics.
Contrasting Details
Interpretation of 2019 Back Pay Law: The White House OMB memo, reported by NBC News, The Washington Post, and The Wall Street Journal, argues that the 2019 Government Employee Fair Treatment Act requires explicit appropriation for back pay. This directly conflicts with the general interpretation by many policymakers, including House Speaker Mike Johnson (whose website initially stated automatic entitlement, as noted by The Washington Post), and Democrats who view the law as guaranteeing back pay, with Senator Brian Schatz (Fox News) stating “‘shall’ is relatively straightforward.”
President Trump’s Stance on Back Pay: While President Trump, across multiple sources (CNN, NBC News, Fox News, The Wall Street Journal), stated that back pay “depends on who we’re talking about” and that “some people that really don’t deserve to be taken care of,” House Speaker Mike Johnson (NBC News, CNN) expressed hope that furloughed workers would receive back pay, though acknowledging “legal analysts” questioning it. Senate Majority Leader John Thune (NBC News, The Washington Post, Fox News) initially seemed unfamiliar with the OMB memo’s argument, believing back pay was “standard practice” or a “nonissue” if the government reopened.
Trump’s Openness to Health Care Deal: The Washington Post notes that President Trump pledged he was “open to a health care compromise” on Monday, but then “later wrote on his Truth Social platform that no deal would be possible until Democrats agree to end the shutdown.” This demonstrates a quick shift in his public statements.
Mass Layoffs - Threat vs. Action: CNN and The Wall Street Journal report that while the White House initially planned for immediate mass layoffs of federal workers and Trump touted it as an “unprecedented opportunity,” these firings have yet to materialize. CNN attributes this delay to an “increasing acknowledgment within the West Wing that the politics of RIFs… would be better later” and a desire “not to appear gleeful.”
The Newsie Project uses AI to summarize, compare, and contrast the reporting of the major US and world online news sources.
This is an evolving project. Tools, approaches, and output formats will change over time. The Newsie Project does not attempt to provide a definitive capsule of any news story. While the incidence of errors in these summaries is low, and I attempt to spot-check details, AI tools can hallucinate. Please click through and read the articles for details (some may be paywalled).