State Auditor Blaha calls for federal action on looming health care costs amid government shutdown

After the U.S. Senate failed to reach an agreement on a funding bill, the federal government entered a shutdown at midnight on Oct. 1.

At the heart of the disagreement is the cost of healthcare for many Americans. Democrats in the Senate called for a repeal of cuts to federal health programs like Medicaid, and argued that tax credits under the Affordable Care Act (ACA), which lowers the price of health insurance for those who qualify, should not be allowed to expire. The Trump administration and other leading Republicans have said that the cuts and the elimination of the tax credits are part of reducing federal spending.

In a press conference hosted by Americans for Responsible Growth, Minnesota State Auditor Julie Blaha and Delaware State Treasurer Colleen Davis spoke about how the expiration of the ACA tax credits and health program funding cuts would impact their respective states. They called for congressional Republicans to make this concession to Democrats.

Americans for Responsible Growth works with state financial officers from both parties to advocate for sustainable fiscal policy that protects both state budgets and consumers.

Blaha explained that the loss of the tax credits would impact about 89,000 Minnesotans, increasing their insurance costs by an average of $177 each month, or $2,124 annually. She also said that these changes will impact those in greater Minnesota disproportionately. Blaha said rural communities, farmers, and small business owners have already experienced some of the greatest impacts of cuts to Supplemental Nutrition Assistance Program (SNAP) funding, increased costs due to tariffs, and worker shortages as a result of immigration policies.

Despite statements from conservative leaders that the spending cuts and elimination of ACA tax credits would reduce federal spending, both Blaha and Davis argued that the cost of insurance and care would be redistributed, instead of disappearing.

“Of course, it always ripples out, because none of these effects will stop here,” Blaha added, “As that cost gets moved out, that starts to affect whether a hospital can stay open, whether a clinic can stay open, and then that starts to affect the entire community’s economy.”

Davis, who worked in financial consulting for healthcare systems before being elected Treasurer, and Blaha said that reducing access to regular medical care would likely result in more patients seeking help in emergency rooms. This, Blaha argued, is not a fiscally sound approach.

“We know that when you cut these kind of benefits, that they’re picked up elsewhere, in places that weren’t designed for them. As a result, the money is not spent as efficiently,” Blaha said. “So for any savings they’re going to have here, there will be more costs somewhere else in the system, unless we can be cruel. And I’m proud of the fact that Minnesotans aren’t going to be cruel. And because of that, Trump’s choices are going to cost us all more.”

The potential costs could go beyond money, according to Davis. “What happens when our systems are overwhelmed with individuals who are desperately needing care because they could not receive it in the best way, at their primary care doctor, at their clinician?” said Davis. “Those emergency departments become overwhelmed and people die in our hallways, on our doorstep before they ever get a chance to be seen and treated. It is not the best way to care for Americans.”

U.S. Senators were out of session on Oct. 1 and 2 in observance of Yom Kippur, are expected to return to their offices on Friday, Oct. 3. Until a stopgap bill is passed, the federal government will remain shutdown. The full extent of the shutdown remains unknown at this time, with some federal workers, like TSA agents and air traffic controllers, still expected to continue working. Though typically they are furloughed during a shutdown, President Trump has alluded to using the period as a time to lay off more federal employees, continuing cuts to departments he began during his first months in office.

Blaha, said she hopes to see progress made on a budget bill. “It’s not a situation where this is time to be grand standing and playing politics,” she said about congressional Republicans. “Get your job done.”

Kirsten Wisniewski October 2, 2025