SNAP Hits a Breaking Point
Today, two district court judges in Rhode Island and Massachusetts ruled the Administration has illegally withheld funding for the Supplemental Nutrition Assistance Program (SNAP), resulting in 42 million Americans set to lose access to food assistance starting on Saturday. In Massachusetts, the Trump Administration is required to submit a report to the judge on Monday. In Rhode Island, the judge is mandating that the Administration release the funding immediately. It’s unclear whether the Administration will appeal these decisions, given that would put them in the posture of suing to block itself from delivering food to hungry children and families. Whether it chooses to or not, the district court decisions have thrown another twist in the ever-changing narrative around the federal government shutdown.
The Trump Administration’s refusal to utilize statutorily required emergency reserve funding set aside for the program will result in the first time ever that the program has run out of federal funds. Even if the Administration changes course, there is not enough time at this point to get assistance to enrollees without at least some gap in benefits.
With millions of Americans set to go without the critical food aid, some states are being forced to step up to fill the void. A number of states are taking emergency actions, including increasing funding for food banks, declaring states of emergency, and allocating millions of dollars to fund emergency nutrition assistance programs.
Other shutdown consequences continue to build up
Beyond SNAP, other crucial government assistance programs are being decimated by the shutdown. More than 65,000 children and families could lose programming from Head Start, which provides early childhood education to low-income households, in November. Additionally, though the availability of funds varies by state, millions of Americans will lose access to the support of LIHEAP, which helps nearly 6 million people pay their utility bills, and WIC, a child nutrition program, if the shutdown continues deep into November.
The shutdown is also hitting the American people in other ways. According to the CBO, the shutdown will cost the US economy at least $7 billion, with the cost rising to $14 billion if it lasts through the end of November. Additionally, the shutdown will also reduce GDP growth in Q4 by 1-2 percentage points.
Finally, after air traffic controllers missed their first full paycheck of the shutdown Tuesday, officials are raising alarm bells about the consequences. Nearly 11,000 air traffic controllers continue working without pay, but thousands of flights are being delayed nationwide as staffing shortages mount.
Americans get a preview of costly ACA premiums
With open enrollment kicking off on November 1st, Americans across the country are learning just how much their healthcare rates will increase in 2026. About 24 million Americans enrolled in ACA health plans, 22 million of which utilize the expiring enhanced premium tax credits, will face steep rate hikes, which are expected to more than double for these enrollees.
These rising costs will drive millions of Americans to go without healthcare altogether. The latest CBO estimate predicts that more than 2 million more Americans will go uninsured if the subsidies expire. As Americans face the consequences of the expiring assistance, expect pressure to mount on Congress to extend the subsidies or take other measures to bring healthcare costs down.
Crunchtime in Congress
With ACA open enrollment going live tomorrow and the harms of the shutdown reaching new heights, Members of Congress are looking more seriously at ways to resolve the month-long impasse.
Republican leadership remains unwilling to engage in negotiations over the expiring Obamacare subsidies. However, bipartisan talks over an end to the shutdown may be beginning to come to life this week. Senate Majority Leader John Thune said he will engage "pretty soon" with Democrats, and bipartisan appropriators began to sketch out a foundation for FY26 appropriations. The dynamics, however, remain largely unchanged — Democrats continue highlighting the severity of healthcare price hikes and pushing for an extension of subsidies, while Republicans refuse to engage in healthcare talks or full-year appropriations until Congress passes a stopgap funding bill.
As has always been the case, President Donald Trump holds the keys to a deal. Last night, he reengaged in the narrative for the first time in weeks to call on the Senate to end the filibuster and have Republicans single-handedly fund the government; a call that Leader Thune and Speaker Johnson swiftly rejected. Time will tell if Trump becomes any more engaged on ending the shutdown beyond late-night tweeting.
