Corporate Chaos: The Real Reason Behind the Lengthy US Government Shutdown?
The 2025 US government shutdown was the longest government shutdown in American history. The Democratic members of the US Congress continued to fight for an extension on existing tax credits for public healthcare like Medicare, Medicaid, and the ACA (Affordable Care Act) (BBC News). The dispute remained focused in the media on the Americans who rely on these government assisted programs - but this only accounts for about 35% of the population (US Government Accountability Office). In 2024, over 165 million individuals (about 50% of the population) in the US received private health coverage through their employers (US Government Accountability Office). Unbeknownst to most, large public companies that offer health insurance to employees receive government tax subsidies in order to pay their employee benefits (Pearl). This is an indirect subsidy, better explained as a tax expenditure, meaning the government does not tax the portion of a company’s income that is spent on employees’ health insurance (Miller). Last year the government spent approximately 384 billion US dollars in subsidies to private corporations for health insurance (PBS NewsHour). If the government shutdown truly hinges on healthcare spending, why is there almost no scrutiny on the immense tax expenditures directed toward private companies’ employee benefits? These subsidies, reinforced by intense corporate lobbying, shape the budget far more than most Americans realize. A deeper look at the shutdown may require acknowledging how dependent both congress and large corporations are on each other and on the healthcare system. This article analyzes several sources, but particularly builds on the Nation News report, “How Lobbying Shapes Healthcare Policy in America”.
First, let it be understood precisely what Medicaid, Medicare, and the ACA are. Medicaid is public healthcare for low-income individuals and families. Medicare is public healthcare for individuals who are ages 65 and older and for those with disabilities. The Affordable Care Act provides subsidies for people who do not have employee healthcare to buy private insurance who do not meet Medicaid eligibility requirements (Marmot, Michael G.).
It is important to make mention that in the US, the government and large corporations are mutually dependent. In the US, the healthcare system is operated by large corporations, including hospitals, insurance companies, computer systems, and health technology. The government reinforces this corporate-driven system through public spending, tax benefits, and subsidies directly supporting insurers and employers. Large corporations employ lobbyists to acquire the support of the government for beneficial influence on monetary and fiscal policy in order to increase their profit. Lobbying is the legal attempt to persuade public officials or legislators to support policies that serve the interest of a particular firm. Lobbyists often donate money to an election by purchasing advertising or donating to campaign fundraisers (Segal). In 2024, roughly 50 million dollars were received by members of Congress from lobbyists, with $24.18 million to Democrats, and $24.27 million to Republicans (Open Secrets 1).
Corporations receive the third largest government expenditure on healthcare after Medicaid and Medicare (PBS). The federal government spent only $120 billion on ACA premium tax credits in 2024, which is less than one third of what was spent on private corporation healthcare subsidies (PBS). Statisticians with Nation News project that subsidies to large corporations are expected to increase to $724 billion in the next decade (PBS). Furthermore, healthcare premiums for individuals with employer healthcare coverage continue to rise. In 2023, premiums rose 7.5% and another 8% increase in 2024 (William Russell). Premiums are expected to escalate another 26% in 2026 (Kaiser Family Foundation).
If government subsidies to corporations for employer healthcare are expected to increase, why aren’t employee premiums expected to decrease? The simple answer is greed. As previously mentioned, these subsidies are tax deductions, meaning companies can write off expenditures on employee benefits from their yearly income and only pay their percentage of income taxes on the remaining revenue. As healthcare prices rise, they receive more government tax deductions on increasing insurance costs, but the employees are still left to pay an increasing premium.
Costs of healthcare are not just increasing for individuals with employee healthcare. Individuals with ACA coverage are expected to face 30% increases in their premiums in 2026 (Kaiser Family Foundation). For individuals with unsubsidized private healthcare, premiums are as well expected to increase 18% in the coming year (Pogue).
Boeing is a company with $15.965 billion in cash reserves, and an overall net worth of $147.9 billion (Macrotrends). The accounting value of Boeing’s health-care obligations is $2.18 billion (The Boeing Company, 56). Boeing disclosed a $7.84 billion valuation allowance tied to health and post-retirement benefits (The Boeing Company, 51). This means Boeing could save hundreds of millions in future tax dollars because it carries large retiree and healthcare obligations. Consequently, a company like Boeing which incurs large health liabilities receives favorable treatment from the tax system - like tax deductions. The result is a structure where large corporations are shielded from rising costs, and middle-class workers are faced with increasing premiums.
A critical question arises: why is Congress not leveraging these companies to cover their own employee’s healthcare costs and reallocate these tax deductions to programs like the ACA? Is it because these companies are giving lobbying funds to government officials with the goal of influencing federal policies, like budgeting? To call out these companies might require Republicans and Democrats alike to forgo millions of dollars that are used for political campaigns and events, TV ads, and publications. This particular government shutdown does not just impact poor Americans who are dependent on government funded healthcare. Since 1970, the total share of US household income held by the middle class has fallen from 62% to 43% (Kochhar, 1). In the coming months, the outcome of the government shutdown could further dilute what is left of the American middle class.
Until Congress confronts corporations which give them funds through lobbyists, the shutdown will continue to serve the priorities of private interest over public welfare. America’s economic strength comes from the ideals of free enterprise, but that is not synonymous to corporate favoritism. Capitalism is dependent on competition, efficiency and innovation, not subsidies negotiated behind closed doors. When lobbying diverts billions of taxpayer dollars to private corporations that is needed for rising healthcare costs, it is inconsistent with the market principles America was built on. Congress must reestablish balance between free enterprise and government control in order to restore enough public welfare and prevent further corporate corruption.
Sources:
BBC News. “US Government Shutdown: How Healthcare Subsidies Fuel the Stalemate.” BBC News, October 3, 2024. https://www.bbc.com/news/articles/crrj1znp0pyo.
Kaiser Family Foundation (KFF). “ACA Insurers Are Raising Premiums by an Estimated 2.6%, but Most Enrollees Could See Sharper Increases in What They Pay.” KFF, October 2024. https://www.kff.org/quick-take/aca-insurers-are-raising-premiums-by-an-estimated-26-but-most-enrollees-could-see-sharper-increases-in-what-they-pay/
Kochhar, Rakesh. “The State of the American Middle Class” Pew Research Center, 31 May 2024. https://www.pewresearch.org/race-and-ethnicity/2024/05/31/the-state-of-the-american-middle-class/
Macrotrends. “Boeing Net Wroth 2011-2025 | BA (Boeing)”. MacroTrends, https://www.macrotrends.net/stocks/charts/BA/boeing/net-worth#google_vignette
Marmot, Michael G., and Jessica J. Allen. “Social Determinants of Health Inequalities.” Public Health Reviews 35, no. 1 (2014): 1–10. https://pmc.ncbi.nlm.nih.gov/articles/PMC4225799/#:~:text=To%20address%20the%20health%20inequalities.
Miller, Grant E. “Tax Subsidies for Employer-Sponsored Health Insurance.” PMC, U.S. National Library of Medicine, 2013, https://pmc.ncbi.nlm.nih.gov/articles/PMC3626328/.
1. OpenSecrets. “Top Recipients of Federal Lobbying Funds.” OpenSecrets.org, 2024. https://www.opensecrets.org/federal-lobbying/top-recipients.
2. OpenSecrets. “Health Insurance Industry Profile: 2024 Election Cycle.” OpenSecrets.org, 2024. https://www.opensecrets.org/industries/summary?cycle=2024&ind=K02.
PBS NewsHour. “How Lobbying Shapes Healthcare Policy in America.” YouTube Video, 8:45. Posted by PBS NewsHour, September 12, 2023. https://www.youtube.com/watch?v=WjJO_VCuAoM&t=428s.
Pearl, Robert. “91% of Healthcare is Government Subsidized. Is Your Coverage Safe?”, Forbes Magazine. March, 2025. https://www.forbes.com/sites/robertpearl/2025/03/24/91-of-healthcare-is-government-subsidized-is-your-coverage-safe/#:~:text=This%20Affordable%20Care%20Act%20program,of%20added%20take%2Dhome%20pay
Pogue, Stacey, et al. “New Federal Policies Spur Higher Health Insurance Premiums for Consumers in 2026, Insurer Filings Show.” To the Point (blog), The Commonwealth Fund, 30 Sept. 2025, https://www.commonwealthfund.org/blog/2025/new-federal-policies-spur-higher-health-insurance-premiums-consumers-2026-insurer-filings
Segal, Troy. “Understanding Bribery and Lobbying: Key Differences and Implications” Investopedia, 23 Oct. 2025. https://www.investopedia.com/financial-edge/0912/the-differences-between-bribery-and-lobbying.aspx
U.S. Government Accountability Office (GAO). Federal Subsidies: Updated Estimates and Oversight Challenges. GAO-25-106798. Washington, DC: U.S. Government Accountability Office, 2025. https://www.gao.gov/products/gao-25-106798.
The Boeing Company. 2024 Annual Report. The Boeing Company, 2025. PDF file. https://www.boeing.com/content/dam/boeing/boeingdotcom/company/annual-report/2024/2024-annual-report.pdf
William Russell. “What Is the Average Cost of Health Insurance in the USA?” William Russell, 2024. https://www.william-russell.com/blog/health-insurance-usa-cost/#:~:text=What%20is%20the%20average%20cost%20of%20health%20insurance%20in%20the.