Cato Podcast What a Long Shutdown It's Been
Nov 5, 2025
Romina Boccia, Director of Budget and Entitlement Policy at the Cato Institute, dives into the implications of the recent government shutdown. She highlights how the shutdown is used as political leverage, with the overlooked reality that federal workers are becoming collateral in negotiations. Boccia discusses the shocking scope of ACA subsidies benefiting high earners and the potential of $1.5 trillion in deficit spending. She also proposes long-term solutions like privatizing certain federal functions to tackle rising debt and inflation.
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Shutdown Treats People As Political Collateral
- The shutdown is inflicting real harm on federal workers and SNAP recipients as political collateral damage.
- Romina Boccia argues Democrats chose an unrelated fight over enhanced Obamacare subsidies instead of accepting a clean CR.
Obamacare 'Enhancements' Favor The Well-Off
- Enhanced Obamacare subsidies mainly benefit higher-income earners, including some earning over $500,000 in certain states.
- Boccia highlights these subsidies were enacted partisanly and don't focus on lower-income Americans.
Demand Transparency On 'Essential' Designations
- Increase transparency around which functions are deemed 'essential' during shutdowns to reduce political manipulation.
- Boccia recommends GAO-style oversight to evaluate discretionary essential-designations after shutdowns.