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Vance Claims ACA Tax Credits Are Rife With Fraud Amid Shutdown

ByDayne Lee

Oct 16, 2025

Vance Claims ACA Tax Credits Are Rife With Fraud Amid Shutdown

Vice President JD Vance accused Democrats of “hostage-taking” in the ongoing U.S. government shutdown, as the political stalemate continues over Democratic demands to extend expiring healthcare subsidies.

The Healthcare Policy Standoff

Twelve days into the government shutdown, Vance argued that the impasse is due to Democrats insisting on an extension of expiring Affordable Care Act (ACA) health insurance tax credits as a condition for their support to reopen the government. Vance stated on “Face the Nation with Margaret Brennan” that the administration “don’t negotiate with a person who has taken the entire federal government hostage over a health care policy dispute.”

The tax credits, which lower the cost of Obamacare health insurance plans for millions of Americans, are set to expire at the end of the year, which would cause monthly premiums to spike. Republicans, who control both the House and the Senate, have repeatedly rejected coupling these extensions with a short-term funding measure, insisting that health care policy and government funding must be addressed separately. Vance emphasized that negotiations on health care could occur, but only once Democrats “do your job and open up people’s government.”

Accusations of Fraud and Chaos

Vance pushed back against the Democratic demands by claiming that “the tax credits actually go to a lot of waste and fraud within the insurance industry.” He insisted the White House and Republicans are willing to compromise, but the “far-left Democrats, led by Chuck Schumer, are going to shut down the government” and are using it for leverage.

The Vice President also defended the administration’s move to begin issuing Reduction in Force (RIF) layoff notices to thousands of federal workers amid the shutdown, saying the job cuts were part of the “chaos” that inevitably results when Democrats shut down the government. Vance affirmed that the administration believes it has the legal authority for the layoffs, and that the continued stalemate rests with Senate Minority Leader Chuck Schumer and his progressive allies.

What The Author Thinks

The Trump administration’s politically driven decision to implement “Reductions in Force” during a government shutdown is a profound, cynical act of weaponizing federal employment for political gain. By permanently dismantling agencies and targeting those perceived as “Democrat-oriented,” the administration transforms a temporary budgetary crisis into a permanent ideological restructuring of the civil service. This action demonstrates a strategic disregard for the legal and ethical separation of the federal workforce from partisan politics, confirming that for this administration, punishing political opposition through bureaucratic means is prioritized over the consistent delivery of essential public services.


Featured image credit: Gage Skidmore via Flickr

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Dayne Lee

With a foundation in financial day trading, I transitioned to my current role as an editor, where I prioritize accuracy and reader engagement in our content. I excel in collaborating with writers to ensure top-quality news coverage. This shift from finance to journalism has been both challenging and rewarding, driving my commitment to editorial excellence.

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