By The Craig Bushon Show Media Team
At 12:01 a.m. on October 1, 2025, the federal government officially shut its doors. It’s the first closure since the 2018–2019 debacle, and while late-night comedians will recycle jokes about closed parks and unpaid workers, this shutdown is different. It isn’t just about failed math on Capitol Hill. It’s about who has the right to taxpayer-funded healthcare — and who does not.
The White House drew a line in the sand. Federal dollars would not, under any circumstances, subsidize healthcare for people who are in this country illegally. Democrats refused to yield, attaching provisions to the spending bill that would protect or expand coverage for undocumented immigrants. When no deal came, Washington ground to a halt. Two million federal workers faced furloughs or unpaid work. Agencies like HHS sent home 41% of their workforce. Cybersecurity and infrastructure protection were left to skeleton crews. Markets wobbled, credit ratings trembled, and yet the administration stood firm.
Why? Because the fight isn’t over temporary shutdown costs. It’s over whether America will permanently commit billions of taxpayer dollars to subsidize noncitizen healthcare. Once such an entitlement is created, it is nearly impossible to undo.
The administration’s message was simple: not one federal dollar for undocumented healthcare. Critics called it reckless. But yielding would have been catastrophic. If Congress had slipped undocumented coverage into this budget, it would have set a precedent: every future negotiation could be hijacked by demands for expanded noncitizen benefits. Entitlements, once granted, never shrink. They only grow.
Congress failed to pass any of the twelve appropriations bills for Fiscal Year 2026. A House-approved continuing resolution (CR) to extend funding to November 21 couldn’t clear the Senate filibuster. And so the government’s spending authority expired. The result: disruption, anger, and uncertainty. But disruption is temporary. The consequences of caving would have been permanent.
The clearest test case is California. On January 1, 2024, the state expanded full-scope Medi-Cal — its Medicaid program — to undocumented adults ages 26 to 49. This built on earlier expansions for children (2015), young adults (2020), and seniors (2022). The coverage is not limited to emergencies. It includes primary care, dental, mental health, prescriptions, vision, specialists — in short, everything.
Nearly 2 million undocumented residents are now eligible, with 700,000 new adults added in 2024 alone. The cost? More than $4 billion annually, all state-funded, since federal law prohibits matching dollars for undocumented coverage. That money comes from the same $37 billion Medi-Cal budget that serves citizens.
The trade-offs are real. Seniors wait longer for specialists. Veterans face overcrowded clinics. Schools and housing compete for funds. Pretending that expanding undocumented coverage doesn’t affect citizens is mathematically dishonest. And even after this massive expansion, more than 500,000 higher-income undocumented residents in California remain uninsured, proving that costs balloon while coverage gaps persist.
California isn’t the outlier anymore. States across the country are experimenting with undocumented healthcare — and most are running into the same budgetary cliffs. Oregon rolled out Healthier Oregon in July 2023, offering Medicaid-style coverage to all income-eligible residents regardless of status. Washington State launched its Apple Health Expansion in July 2024, covering 13,000 undocumented adults. The program hit its enrollment cap almost immediately, leaving thousands on waitlists. Colorado introduced OmniSalud, a program providing subsidies for private insurance. By late 2022, 5,700 had enrolled with subsidies, but legal and budgetary challenges threaten its survival. New York debated a similar move but backed off when the numbers didn’t add up.
The fiscal stress is clearest in Illinois and the District of Columbia. Illinois’ program for noncitizens was projected to cost $126 million. Instead, it cost $485 million — a 400% overshoot — forcing enrollment freezes and proposed cuts of $330 million. Washington, D.C. faces a $182 million Medicaid shortfall. By 2027, it plans to phase out adult coverage entirely, affecting 26,000 people.
The pattern is unmistakable: states open the door, costs explode, services for citizens suffer, and pressure builds to federalize the expense.
Under federal law, undocumented immigrants cannot access Medicare, regular Medicaid, or ACA marketplace subsidies. Exceptions are limited to Emergency Medicaid and stabilization under EMTALA — less than 1% of federal health spending. But California’s Medi-Cal expansion and its imitators are normalizing comprehensive undocumented coverage. If Washington were to federalize these models, costs could dwarf even the $15 billion weekly GDP hit from this shutdown. The shutdown is painful — FAA delays, CDC research halted, Smithsonian closed — but temporary. A federally funded undocumented healthcare entitlement would be permanent, generational, and irreversible.
Vice President JD Vance summed it up: “This shutdown is 100% on Democrats’ far-left faction, who held the government hostage over healthcare for illegal immigrants.” Senate Minority Leader Chuck Schumer countered that Republicans were “bullying” America by holding up ACA protections. The political shouting match is loud, but the underlying question is quiet and stark: Whose healthcare comes first — citizens or noncitizens?
Another flashpoint in this shutdown was ACA subsidies. Democrats demanded riders to prevent premium hikes, arguing that millions of Americans would lose coverage without guarantees. Republicans pushed back, saying those provisions should be debated in full legislation, not forced into a stopgap budget. Because of Senate filibuster rules, neither side could move forward. A clean CR didn’t have the votes, and the compromise never materialized. The result: shutdown.
Shutdowns are expensive. This one costs $15 billion per week in GDP losses, rivaling the $11 billion lost in 2018–2019 and $24 billion in 2013. Agencies stagger. Public health is delayed. Cyber defenses weaken. But compare that to California’s $4 billion annual Medi-Cal bill — a cost that repeats every year. If similar programs spread nationwide and were federalized, the permanent expense could exceed any temporary shutdown. Shutdowns end. Entitlements don’t.
Every dollar has a destination. When California spends $4 billion on undocumented healthcare, that is $4 billion not spent on schools, infrastructure, housing, veterans’ care, or faster access for seniors. Illinois’ overruns and D.C.’s impending cuts show what happens next: the programs buckle, citizens get squeezed, and lawmakers start asking Washington to pick up the tab. Once Washington agrees, the federal government is locked into paying billions — and citizens will wait longer, face higher premiums, and navigate thinner networks. That is not speculation. It is already happening at the state level.
Shutdowns always spark a blame game. The White House blames Democrats. Democrats blame Republicans. Agencies flash warning banners that may skirt Hatch Act rules. The partisan theater will dominate headlines. But step back, and the question is much bigger than politics. This is about whether taxpayer resources are directed first toward citizens — or redirected toward noncitizens. If Washington caves, the precedent is set, and the squeeze on citizens becomes permanent.
Shutdowns are disruptive. Workers miss paychecks. National parks close. Families suffer uncertainty. But shutdowns end. What does not end is a permanent entitlement program for undocumented healthcare. California’s Medi-Cal expansion shows the stakes: billions diverted, citizens pushed aside. Oregon, Washington, and Colorado prove other states are eager to follow. Illinois and D.C. reveal the financial cliff that comes after the promises. New York’s retreat shows even progressive leaders understand the math eventually breaks. The federal government faces a binary choice: hold the line now or accept a future where citizen healthcare is permanently diluted.
At The Craig Bushon Show, we reject the idea that this shutdown is mere “theater.” It is a battle for the future of taxpayer healthcare. Every decision in Washington has trade-offs. Seniors, veterans, families — all are impacted when resources are redirected. Temporary shutdown pain is harsh. But the alternative — a permanent, taxpayer-funded entitlement for undocumented immigrants — would be far harsher, locking citizens into second place in their own system. The White House was right to endure the cost. Because the line must be drawn here. And it must hold.
Disclaimer: This editorial reflects the opinion of The Craig Bushon Show Media Team. It is not legal or financial advice.
Sources: Congressional Budget Office; California DHCS; CalMatters; Oregon Health Authority; Washington State Health Care Authority; Colorado Sun; New York State budget reports; Illinois HFS audit; D.C. budget documents; AP; Politico; Reuters; Washington Post; CBS News; WhiteHouse.gov; Senate/House records.
