The federal shutdown is entering a third week and there is little prospect for a solution anytime soon. But New Mexico legislators in Washington are using their privileges to introduce legislation by pushing for a path to compromise and help for federal workers stuck without a paycheck until a compromise is reached.
Sen. Martin Heinrich (D-NM) is among the Senate Democrats advocating for a bill meant to shield federal workers and contractors from loan defaults, evictions and foreclosures during the ongoing federal government shutdown.
Heinrich and Sen. Brian Schatz (D-HI) sponsored the legislation, known as the Federal Employee Civil Relief Act, which has already picked up 16 Democrat co-sponsors of the bill, according to a press release from Heinrich’s Office on Tuesday.
The legislation, according to the press release, would prevent federal employees furloughed during a government shutdown from being evicted or facing foreclosure; having their vehicles or property repossessed; having negative impacts on their credit histories; losing their health insurance due to missed premiums or falling behind on student loans.
Protections contained in the legislation would last throughout a government shutdown and remain in effect for 30 days following a lapse in federal funding.
“Federal workers make our government work for New Mexico families — from caring for our veterans to maintaining our public lands and keeping our communities safe. They shouldn’t have to suffer because Republicans in Congress refuse to come to the table and work with Democrats to lower health care costs,” Heinrich said in the press release, blaming President Donald Trump for the continued funding stalemate.
A similar piece of legislation has already been introduced in the House by Rep. Brendan Boyle (D-PA-02).
Shutdown drags on
The legislation has been put forth as the federal government shutdown entered its 14th day on Tuesday, and as the Trump administration has threatened to terminate 4,200 federal civil service employees.
A Republican-backed continuing resolution that would keep the government funded at current levels up until November 21, passed the U.S. House of Representatives last month but has failed to garner the 60 votes needed in the Senate for passage. House Republicans have so far not returned to Washington since September.
Democrats have introduced their own continuing resolution, which contains a permanent extension of the credit, something that the Congressional Budget Office estimates would cost $350 billion over ten years. That Continuing Resolution has also repeatedly failed in the Senate on a party-line vote.
Enhanced Premium Tax Credits are subsidies enacted by Congress in 2021 and were meant to expand health insurance coverage to people making more than 400% of the Federal Poverty Level, and keep premiums low for people who rely on the insurance exchanges. They were temporarily renewed with the passage of the Inflation Reduction Act in 2022.
Without an extension of those credits, it is estimated that consumers across the nation will see an average increase of 75% in the premiums, and in rural areas, those hikes could rise as high as 90%, according to the Kaiser Family Foundation, a nonpartisan health research organization.
Vasquez backs one-year extension of tax credits
An extension of the Enhanced Premium Tax Credits has become a central demand by Democrats to reopen the government, and one member of New Mexico’s congressional delegation has signed onto a bipartisan one-year extension of the credits.
Vasquez declared his backing for the Bipartisan Premium Tax Credit Extension Act in a press release on Thursday. He is one of 27 co-sponsors of the legislation introduced in September by U.S. Rep. Jennifer Kiggans (R-VA-02). The bill would delay expiration of the credits until Jan. 1, 2027, a year after funding is currently scheduled to end.
“The Bipartisan Premium Tax Credit Extension Act shows that commonsense Republicans and Democrats are willing to come together and agree that the federal government needs to keep investing in the health of its citizens,” Vasquez said.
Vasquez stated in the press release that he signed onto the bill after hearing concerns from healthcare providers and constituents during a roundtable discussion on healthcare. He noted that during the discussion, participants expressed fear that if the Enhanced Premium Tax credits were to lapse, it would have negative effects on preventative care and rural hospitals.
Earlier this month, New Mexico state lawmakers passed their own bill that readjusted criteria for households and individuals on the state’s exchange, so that the 6,300 New Mexicans who depend on the credit can receive assistance from the state’s Healthcare Affordability Fund. It also authorized $17 million for that purpose for the current fiscal year. However, a Legislative Finance Committee analysis of the bill warned that the cost will rise in FY 27 to between $34.6 million and $39.8 million.