President Donald Trump has criticized Senate Minority Leader Chuck Schumer (D-N.Y.) for overreaching in the ongoing Democratic leadership crisis as the longest government shutdown in history nears an end.
Trump Against Extending Healthcare Subsidies
“I think he made a mistake in going too far,” Trump told host Laura Ingraham about Schumer on her show, “The Ingraham Angle on Fox News, Monday. “He thought he could break the Republicans, and the Republicans broke him.”
Trump alleged that the Democrats’ primary motive was to extend subsidies. “What they really wanted was $1.5 trillion for people that came in illegally, people that come in through and out of prisons,” he said. He also argued that funding healthcare for illegal immigrants would have negatively impacted other people’s healthcare.
Funding Bill For Government Reopening Advances
Despite internal divisions within the Democratic Party, eight members of the Senate Democratic caucus joined Republicans on Monday in a 60–40 vote to pass a funding bill to reopen the federal government. This includes funding for critical programs such as military housing, veterans’ benefits, and the Department of Agriculture. Notably, the measure omitted Democrats' request to extend enhanced Affordable Care Act subsidies.
One Republican, Sen. Rand Paul of Kentucky, voted against the measure. The funding deal now heads to the House, where GOP leaders are hopeful it could pass as soon as Wednesday, potentially bringing an end to the longest U.S. government shutdown in history.
Schumer At The Center Of Democratic Crisis
The Democratic leadership crisis and the subsequent government shutdown have been ongoing for several weeks. Schumer’s handling of the situation has been under scrutiny, with some Democrats like Rep. Ro Khanna (D-Calif.) calling for his replacement.
Another report by Axios on Monday revealed that while Schumer publicly clashed with Republicans over the shutdown, he privately urged moderate Democrats to stay firm until November, aligning with the start of Affordable Care Act enrollment. By mid-October, he signaled to his caucus that he would likely oppose the bipartisan deal the moderates were negotiating.
Shutdown Impact On Markets
The end of the government shutdown is not only a significant political event but also has considerable implications for the economy and the stock market. The release of delayed economic data will provide fresh insights into the state of the economy, potentially influencing market trends.
Furthermore, historical data suggests a positive outlook for the stock market following the reopening of the government, which could be a promising sign for investors. Ryan Detrick, chief market strategist at Carson Group, noted that in 20 of the past 22 cases, the S&P 500 posted gains in the year after a government reopened, averaging returns of more than 12% over the following 12 months.
Price Action
On Monday, the SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, climbed 1.56% and 2.21%, respectively, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
