WEBVTT - Rep. Mike Lawler Talks Government Shutdown

0:00:02.520 --> 0:00:08.600
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. We don't want to

0:00:08.600 --> 0:00:10.400
<v Speaker 1>waste time. We want to get right to the Congressman.

0:00:10.480 --> 0:00:12.559
<v Speaker 1>Mike Lawler is with us now, of course, the Republican

0:00:12.600 --> 0:00:14.480
<v Speaker 1>from New York seventeenth. We spent a lot of time

0:00:14.520 --> 0:00:17.959
<v Speaker 1>talking about everything from salt to yes government funding, and

0:00:18.000 --> 0:00:20.080
<v Speaker 1>here we are again, Congressman, thank you for joining us

0:00:20.120 --> 0:00:23.599
<v Speaker 1>on Bloomberg TV and radio. The conventional wisdom is we

0:00:23.680 --> 0:00:26.160
<v Speaker 1>shut down after midnight, and I'm assuming you don't see

0:00:26.160 --> 0:00:28.760
<v Speaker 1>a way around it. What comes after the shutdown?

0:00:30.280 --> 0:00:33.839
<v Speaker 2>Well, unfortunately, it looks like we are barreling towards a

0:00:33.880 --> 0:00:38.680
<v Speaker 2>shutdown because Democrats like Hakeem Jeffries and Chuck Schumer have

0:00:38.840 --> 0:00:43.319
<v Speaker 2>changed their position entirely on keeping the government funded and

0:00:43.360 --> 0:00:47.640
<v Speaker 2>passing clean crs. Whether it was Joe Biden or Donald Trump,

0:00:47.720 --> 0:00:50.839
<v Speaker 2>I have voted for every single CR to keep the

0:00:50.880 --> 0:00:56.320
<v Speaker 2>government open and funded while we negotiate a final appropriations package.

0:00:56.520 --> 0:00:59.640
<v Speaker 2>I think it is foolish to shut down. The government

0:00:59.920 --> 0:01:02.560
<v Speaker 2>is going to create chaos in the markets. It will

0:01:02.680 --> 0:01:07.000
<v Speaker 2>create chaos for the American people, especially those who rely

0:01:07.280 --> 0:01:12.960
<v Speaker 2>on the social safety net, border security, our military veterans, benefits, etc.

0:01:13.720 --> 0:01:18.600
<v Speaker 2>This is entirely unnecessary and does nothing to actually further

0:01:19.040 --> 0:01:21.959
<v Speaker 2>the work of the American people. It is pure political

0:01:22.080 --> 0:01:26.360
<v Speaker 2>posturing by my Democratic colleagues because they are not in

0:01:26.400 --> 0:01:30.080
<v Speaker 2>the majority, and from my vantage point, that is not

0:01:30.240 --> 0:01:33.160
<v Speaker 2>what you do. I was against it when Republicans wanted

0:01:33.200 --> 0:01:36.039
<v Speaker 2>to shut down the government, and I'm against it here

0:01:36.120 --> 0:01:38.759
<v Speaker 2>when Democrats want to do it. So we will see

0:01:38.760 --> 0:01:42.720
<v Speaker 2>what happens over these twelve hours. As you pointed out,

0:01:42.840 --> 0:01:46.399
<v Speaker 2>Republicans passed a clean cr through the House. The bill

0:01:46.480 --> 0:01:49.040
<v Speaker 2>is sitting in the Senate at the desk. It can

0:01:49.120 --> 0:01:53.720
<v Speaker 2>easily be taken back up right now and passed, and

0:01:53.920 --> 0:01:58.720
<v Speaker 2>Chuck Schumer refuses to do that, despite his many pronouncements

0:01:58.880 --> 0:02:01.920
<v Speaker 2>in years past about the need to pass clean crs

0:02:02.320 --> 0:02:04.840
<v Speaker 2>and not pound your fists and stomp your feet when

0:02:04.840 --> 0:02:05.720
<v Speaker 2>you don't get your way.

0:02:07.280 --> 0:02:10.280
<v Speaker 3>So, Congressman, I hear you on the future of a

0:02:10.320 --> 0:02:13.200
<v Speaker 3>potential clean CR. But do you see any room for

0:02:13.320 --> 0:02:17.200
<v Speaker 3>negotiations here when it does come to those expiring Obamacare

0:02:17.680 --> 0:02:20.240
<v Speaker 3>tax credits. We did hear from how Speaker Mike Johnson

0:02:20.280 --> 0:02:22.400
<v Speaker 3>in an interview this morning saying that there might be

0:02:22.520 --> 0:02:25.760
<v Speaker 3>some negotiating room, but that would have to happen after

0:02:25.880 --> 0:02:28.320
<v Speaker 3>a funding bill is passed, since the tax credits are

0:02:28.320 --> 0:02:29.959
<v Speaker 3>going to expire by the end of the year.

0:02:31.600 --> 0:02:36.000
<v Speaker 2>Correct, and I am one of several Republican members who

0:02:36.040 --> 0:02:40.840
<v Speaker 2>have signed on to legislation to extend the ACA subsidies

0:02:41.200 --> 0:02:44.519
<v Speaker 2>for a year. Remember these were put in place during

0:02:44.639 --> 0:02:48.359
<v Speaker 2>COVID to try and help those who were losing their

0:02:48.480 --> 0:02:52.320
<v Speaker 2>jobs or unemployed because the government was forcing businesses to

0:02:52.400 --> 0:02:55.960
<v Speaker 2>shut down. We don't want people to be unduly hurt,

0:02:56.040 --> 0:03:01.440
<v Speaker 2>obviously by healthcare premium increases, but to try and shut

0:03:01.440 --> 0:03:07.040
<v Speaker 2>the government down while negotiating some of these issues is foolish.

0:03:07.200 --> 0:03:10.760
<v Speaker 2>We can easily keep the government funded through November twenty first,

0:03:11.240 --> 0:03:15.400
<v Speaker 2>finalize all appropriations for fiscal year twenty six, and come

0:03:15.440 --> 0:03:19.760
<v Speaker 2>to an agreement on these ACA subsidies for the next

0:03:19.840 --> 0:03:22.799
<v Speaker 2>year or two. There's no reason to shut the government

0:03:22.880 --> 0:03:25.359
<v Speaker 2>down in the middle of those negotiations.

0:03:26.720 --> 0:03:29.000
<v Speaker 1>You wonder what would happen if if Mike Johnson said

0:03:29.000 --> 0:03:31.520
<v Speaker 1>exactly what you just said. Although maybe there's sole little

0:03:31.520 --> 0:03:34.720
<v Speaker 1>trust it doesn't matter right now, Congressman, But what should

0:03:34.720 --> 0:03:38.200
<v Speaker 1>come of these after we've been talking about these extensions

0:03:38.200 --> 0:03:42.400
<v Speaker 1>for some time now, everybody's become an expert on this

0:03:42.640 --> 0:03:44.920
<v Speaker 1>or so they think if this was a COVID era

0:03:44.920 --> 0:03:48.320
<v Speaker 1>a policy, should it be extended forever as Democrats suggest,

0:03:48.360 --> 0:03:50.560
<v Speaker 1>you just pointed out a year, should they come down?

0:03:50.600 --> 0:03:52.880
<v Speaker 1>Should be there be a gradual phasing out. What's the

0:03:52.920 --> 0:03:53.800
<v Speaker 1>long term on this?

0:03:55.000 --> 0:03:57.440
<v Speaker 2>Well, I think again this is a negotiation and a

0:03:57.480 --> 0:04:01.800
<v Speaker 2>discussion to be had. I think many Republicans would like

0:04:01.880 --> 0:04:08.600
<v Speaker 2>to see an income limit on these subsidies. Again, these

0:04:08.600 --> 0:04:11.160
<v Speaker 2>were put in place during COVID. I think there's a

0:04:11.280 --> 0:04:14.520
<v Speaker 2>larger point though, which is if the Affordable Care Act

0:04:14.680 --> 0:04:19.560
<v Speaker 2>was supposed to reduce healthcare premiums, was supposed to increase access,

0:04:20.000 --> 0:04:23.080
<v Speaker 2>why is it not working as intended fifteen years later,

0:04:23.400 --> 0:04:27.080
<v Speaker 2>so much so that you need these subsidies to help people. Obviously,

0:04:27.120 --> 0:04:31.200
<v Speaker 2>there's a broader issue with health insurance costs in this country,

0:04:31.880 --> 0:04:34.560
<v Speaker 2>and I think that is something that Republicans and Democrats

0:04:34.600 --> 0:04:37.920
<v Speaker 2>should work on together to focus on how we reduce

0:04:38.040 --> 0:04:40.920
<v Speaker 2>overall costs. You saw the President today with the announcement

0:04:41.279 --> 0:04:47.560
<v Speaker 2>with respect to Pfizer and certain prescription drugs and being

0:04:47.600 --> 0:04:50.599
<v Speaker 2>able to purchase them at a much lower rate. That's

0:04:50.640 --> 0:04:54.440
<v Speaker 2>important when you look at the challenges facing the US

0:04:54.480 --> 0:04:58.320
<v Speaker 2>and Europe. Part of the problem with prescription drug costs

0:04:58.320 --> 0:05:02.680
<v Speaker 2>in America is that Americans are subsidizing Europeans with the

0:05:02.680 --> 0:05:05.120
<v Speaker 2>price controls that have long been put in place on

0:05:05.240 --> 0:05:08.960
<v Speaker 2>prescription drugs in Europe. So that is something that we

0:05:09.000 --> 0:05:13.239
<v Speaker 2>should all embrace reducing overall cost, but that's not something

0:05:13.279 --> 0:05:17.520
<v Speaker 2>that you shut the government down over and really harm

0:05:17.640 --> 0:05:19.520
<v Speaker 2>the very people that you're trying to help.

0:05:21.000 --> 0:05:24.800
<v Speaker 3>Well, sticking with this idea that higher drug costs are

0:05:25.000 --> 0:05:29.600
<v Speaker 3>a point of a political point on both sides of

0:05:29.640 --> 0:05:31.039
<v Speaker 3>the aisle, I also want to ask you about some

0:05:31.040 --> 0:05:34.120
<v Speaker 3>of the economic impacts here of a potential shutdown. You said,

0:05:34.120 --> 0:05:36.839
<v Speaker 3>of course on house finn services. Are analysts at Bloomberg

0:05:36.880 --> 0:05:39.679
<v Speaker 3>Economics estimate that the unemployment rate could reach four point

0:05:39.760 --> 0:05:44.000
<v Speaker 3>seven percent in a shutdown. I'm wondering are the optics

0:05:44.040 --> 0:05:47.160
<v Speaker 3>going to be difficult to navigate here, considering there's already

0:05:47.160 --> 0:05:51.479
<v Speaker 3>concerns about the labor market. How are Republicans going to

0:05:51.600 --> 0:05:55.200
<v Speaker 3>message around this when we know that economic impacts could

0:05:55.279 --> 0:05:57.920
<v Speaker 3>really be one of those top top concerns and.

0:05:57.880 --> 0:06:03.320
<v Speaker 2>Priorities we've seen in shutdowns prior. For instance, the stock

0:06:03.400 --> 0:06:08.800
<v Speaker 2>market has generally grown the biggest concern has been on GDP.

0:06:09.560 --> 0:06:12.320
<v Speaker 2>We saw for Q two revision a three point eight

0:06:12.360 --> 0:06:17.840
<v Speaker 2>percent growth in GDP, which far exceeded what many prognosticators

0:06:18.200 --> 0:06:21.400
<v Speaker 2>we're claiming was going to happen in Q two. So

0:06:21.760 --> 0:06:25.919
<v Speaker 2>you know, certainly the economy is moving in the right direction.

0:06:26.200 --> 0:06:29.400
<v Speaker 2>We got the tax package across the finish line that

0:06:29.560 --> 0:06:33.279
<v Speaker 2>was critical for tax certainty. We don't need a government

0:06:33.320 --> 0:06:37.760
<v Speaker 2>shutdown to create unnecessary chaos as we are working to

0:06:38.440 --> 0:06:42.480
<v Speaker 2>enact critical policies that move the economy in the right direction,

0:06:42.640 --> 0:06:48.400
<v Speaker 2>that create jobs, that create wealth and opportunity, and so look,

0:06:48.720 --> 0:06:53.200
<v Speaker 2>unemployment obviously is a critical issue. We don't want to

0:06:53.240 --> 0:06:56.679
<v Speaker 2>see layoffs, We don't want to see uncertainty in the market.

0:06:57.120 --> 0:07:01.120
<v Speaker 2>Democrats have said for years, Chuck Schumer, Jeffrey's long on

0:07:01.279 --> 0:07:04.960
<v Speaker 2>record about the impacts of a government shutdown and the

0:07:04.960 --> 0:07:07.840
<v Speaker 2>need for a clean CR. They should look in the mirror,

0:07:07.880 --> 0:07:11.240
<v Speaker 2>listen to their words of years past, including just last

0:07:11.320 --> 0:07:13.840
<v Speaker 2>year with Joe Biden at the Helm, and vote the

0:07:13.920 --> 0:07:16.920
<v Speaker 2>right way, which is to pass a clean CR and

0:07:17.040 --> 0:07:19.720
<v Speaker 2>keep the government funded while we work through all these

0:07:19.760 --> 0:07:21.120
<v Speaker 2>other issues of concern.

0:07:22.360 --> 0:07:25.720
<v Speaker 1>What's your view on the Fed Congressman, as you sit

0:07:25.760 --> 0:07:29.200
<v Speaker 1>on the Financial Services Committee. To Tyler's point, if this

0:07:29.280 --> 0:07:32.120
<v Speaker 1>affects the release of the jobs report, for instance, on Friday,

0:07:32.160 --> 0:07:34.560
<v Speaker 1>if BLS can't kick out the jobs data, at what

0:07:34.600 --> 0:07:37.520
<v Speaker 1>point does that become a problem for the FED to

0:07:37.560 --> 0:07:41.080
<v Speaker 1>make an accurate decision, say by the next meeting, when

0:07:41.080 --> 0:07:43.520
<v Speaker 1>it doesn't have a complete picture of the data. Is

0:07:43.840 --> 0:07:46.360
<v Speaker 1>this something you're worried about it you think government will

0:07:46.400 --> 0:07:47.240
<v Speaker 1>be back open at time?

0:07:48.720 --> 0:07:53.280
<v Speaker 2>Well, again, these are all the concerns and considerations that

0:07:53.400 --> 0:07:56.880
<v Speaker 2>go into a government shutdown and why I fundamentally believe,

0:07:57.160 --> 0:08:00.840
<v Speaker 2>regardless of which party is in power, cutting the government

0:08:00.880 --> 0:08:04.520
<v Speaker 2>down is stupid. It doesn't serve a purpose but for

0:08:04.640 --> 0:08:07.720
<v Speaker 2>a political one. And in this instance, Democrats are trying

0:08:07.760 --> 0:08:11.800
<v Speaker 2>to use this for a political purpose, and that is wrong.

0:08:12.520 --> 0:08:15.280
<v Speaker 2>It was wrong when Republicans wanted to do it in

0:08:15.360 --> 0:08:18.400
<v Speaker 2>years past, it is wrong now when you talk about

0:08:18.440 --> 0:08:21.800
<v Speaker 2>the FED. Look fundamentally, I believe the FED has been

0:08:21.960 --> 0:08:25.320
<v Speaker 2>late to the game both when they needed to raise

0:08:25.400 --> 0:08:28.320
<v Speaker 2>interest rates in the past and now in terms of

0:08:28.480 --> 0:08:31.920
<v Speaker 2>reducing interest rates. I think they need to cut interest

0:08:32.000 --> 0:08:36.080
<v Speaker 2>rates far greater than they have. Obviously, having all of

0:08:36.080 --> 0:08:40.480
<v Speaker 2>the data and information is important, but I think all

0:08:40.520 --> 0:08:42.760
<v Speaker 2>of us recognize the need for them to cut rates.

0:08:42.800 --> 0:08:45.800
<v Speaker 2>So whether or not they have that data, they need

0:08:45.840 --> 0:08:50.480
<v Speaker 2>to act on the reality of the situation. Jerome pal

0:08:50.800 --> 0:08:54.920
<v Speaker 2>needs to advance rate cuts in a serious way so

0:08:54.960 --> 0:08:57.760
<v Speaker 2>that we can continue to move this economy in the

0:08:57.840 --> 0:08:58.400
<v Speaker 2>right direction.

0:09:00.000 --> 0:09:02.199
<v Speaker 3>We heard from President Trump this morning saying that there

0:09:02.200 --> 0:09:06.319
<v Speaker 3>could be quote a lot in his words of firings

0:09:07.120 --> 0:09:11.240
<v Speaker 3>amid this shut down. We know the OMB was circulating

0:09:11.320 --> 0:09:14.600
<v Speaker 3>this memo threatening permanent layoffs. Do you agree with this

0:09:14.840 --> 0:09:18.800
<v Speaker 3>as what seems to be emerging as a negotiating tactic

0:09:18.840 --> 0:09:20.920
<v Speaker 3>between the White House and Democrats on the Hill.

0:09:22.200 --> 0:09:25.839
<v Speaker 2>Look, I said earlier in the week when that memo

0:09:25.960 --> 0:09:29.000
<v Speaker 2>came out that I don't agree with permanent layoffs, but

0:09:29.080 --> 0:09:32.040
<v Speaker 2>this is the challenge. When you have a shutdown. The

0:09:32.120 --> 0:09:35.840
<v Speaker 2>executive will make determinations as to who's essential who is not,

0:09:36.920 --> 0:09:41.640
<v Speaker 2>restructuring of departments and agencies based on a lack of funding.

0:09:41.960 --> 0:09:45.760
<v Speaker 2>And I think if Democrats are so concerned about what

0:09:45.920 --> 0:09:51.880
<v Speaker 2>they see as excessive executive overreach, then they shouldn't be

0:09:52.000 --> 0:09:55.440
<v Speaker 2>playing games here past the clean cr and keep the

0:09:55.480 --> 0:09:57.760
<v Speaker 2>government funded and then we don't even have to have

0:09:57.800 --> 0:10:02.240
<v Speaker 2>that discussion. But unfortunately they are playing games here and

0:10:02.360 --> 0:10:07.520
<v Speaker 2>changing their previous position. Every single House Democrat but for

0:10:07.679 --> 0:10:11.120
<v Speaker 2>one Jared Golden of Maine, every single House Democrat either

0:10:11.120 --> 0:10:14.600
<v Speaker 2>didn't vote or voted no on keeping the government funded

0:10:14.679 --> 0:10:15.720
<v Speaker 2>almost two weeks ago.

0:10:16.920 --> 0:10:19.440
<v Speaker 1>Do you take the White House quickly Congressman at their

0:10:19.440 --> 0:10:20.800
<v Speaker 1>word when it comes to the layoffs.

0:10:23.000 --> 0:10:27.360
<v Speaker 2>Look, I don't think they're kidding around. If they intend

0:10:27.400 --> 0:10:31.880
<v Speaker 2>to do that, They've made that clear. And again, why

0:10:31.880 --> 0:10:34.360
<v Speaker 2>play with fire here. There's a very easy way to

0:10:34.400 --> 0:10:37.320
<v Speaker 2>solve all this. Pass a clean cr and let's keep

0:10:37.360 --> 0:10:40.760
<v Speaker 2>doing the work of the American people. Negotiate a final

0:10:40.800 --> 0:10:43.880
<v Speaker 2>appropriations deal. What they should be asking for is a

0:10:43.920 --> 0:10:47.640
<v Speaker 2>top line number from OMB so that we can finalize

0:10:47.640 --> 0:10:50.800
<v Speaker 2>the appropriations for fiscal year twenty six. That's what they

0:10:50.840 --> 0:10:53.440
<v Speaker 2>should be asking for instead of trying to play political

0:10:53.480 --> 0:10:54.040
<v Speaker 2>games here.

0:10:56.160 --> 0:10:59.839
<v Speaker 3>All right, Republican Congressman Mike Lawler of New York, thank

0:10:59.880 --> 0:11:03.040
<v Speaker 3>you so much for joining us here on Bloomberg Television

0:11:03.080 --> 0:11:03.959
<v Speaker 3>and Radio Today.